Key Indicator Alert: New Home Sales Down
New home construction will begin to slow in 2008, but will remain high by historical standards, according to the Canada Mortgage and Housing Corporation's (CMHC) third quarter Housing Market Outlook report.
In Ontario, economic uncertainty, rising new housing prices and a greater selection of homes available in the resale market will result in fewer new home sales in 2008 and a dip in new home starts in 2009. The report also notes the average MLS® price in Ontario rose by 7.6 per cent in 2007. However, for 2008 and 2009, the increases will be more modest at 2.8 per cent and 2.3 per cent respectively.
Even though the prices have dropped and will continue to drop, market conditions will result in a 3.3 per cent increase in the average MLS® price this year and a 3.0 per cent increase in 2009.
Go to HERE for the full report.