The CMHC Reported last week the Ontario Real Estate Economy to strengthen by 2010, showing decreases in house prices for 2009 by 5% and 3.5% in 2010! The report generalizes the Ontario market, talk to your local agent before using the statistics as they may not apply to your market area. The Port Credit, Lorne Park and Clarkson Real Estate Market is seeing a return to multiple offers and strong sales in the price ranges driven primarily by first time home buyers. We are seeing inventory at low levels, and seeing some of our sellers actually in the drivers seat! Here is the actual article published by OREA....

Ontario home sales to improve in 2010

A slowing provincial economy will dampen housing demand, according to the 2009 Second Quarter CMHC Housing Market Outlook – Canada Edition, released in May. Affordability conditions will improve and demand will increase in 2010 as the provincial economy stabilizes.

The CMHC forecasts the Ontario economy will contract before gradually recovering in 2010. Resale volumes will slow before rising in 2010 and the slowing demand conditions will dampen home prices and put buyers in the driver’s seat. Expect home prices to fall by 5.1 per cent this year and 3.6 per cent in 2010.

The most pressure to home prices will be in urban markets tied to auto production and U.S. trade, such as Windsor, Oshawa, and St. Catherine’s-Niagara.

Ontario housing starts will decline this year, then stage a modest pickup in 2010. Demand shift to more modestly priced ownership and rental housing will support high density construction activity in Toronto, Barrie, and Ottawa. The Hamilton, Thunder Bay, Ottawa, and Kitchener new home markets will enjoy greater starts stability as these centers represent the tightest Ontario resale markets.

Stable labour market conditions in 2010 will help improve affordability and will help boost housing demand in 2010, the CMHC says.