The housing market in Ontario Canada has remained steady despite the slow economy. While there are still foreclosures in the area, the number of foreclosures has decreased as the economy has started to bounce back. In addition, banks have been working with individuals in order to help avoid foreclosures. There are several programs available that can help families that are facing foreclosures and these programs have helped lower the number.
Currently, the market for new homes is expected to remain steady throughout 2013. The housing starts in 2011 were 193,950 new units and this decreased to 190,000 in 2012. However, this number is expected to grow to 193,800 during 2013.
Most people that own a home are concerned about the resale value of the home that they currently reside in. This is especially true for people that may be looking to downsize their home due to their current economic or family situation. The good news is that the sale of homes that already exist is expected to rise in 2013. There was a steady rise in home sales during 2012 and this is expected to continue into 2013.
Trends that Impact the Housing Market
There are several trends that will affect the housing market. One of the trends is the mortgage rates. The Bank of Canada recently announced that they plan on leaving the target mortgage interest rates unchanged for at least the medium term. The uncertainty of the global economy, especially throughout Europe is a concern. It is this uncertainty that the Bank of Canada has taken into consideration when making the decision to keep the mortgage rates the same. Mortgage rates were last raised in 2010, but they are currently are remaining at all-time low levels.
Another impact on the housing market is migration into the country. The net international migration was estimated at 233,846 during 2011. This amount increased to 253,800 in 2012 and is expected to be even higher during 2013. With new people moving into the area the housing sector of Ontario will be boosted. This will help increase home prices as well as increase the need for new homes being built.
The consensus among the prominent economic forecasters in Canada, the Gross Domestic Product is expected to grow by nearly two and a half percent during 2013. This comes after a growth of just over two percent in 2012. In addition, employment is expected to grow by nearly two percent during the year after a growth of nearly one and a half percent in 2012. The unemployment rate is expected to drop to roughly six percent after remaining just above seven percent during 2012.
While the global economy remains uncertain, the overall outlook for Ontario’s housing sector looks good. The market remained resilient during 2011 and the housing market is expected to remain resilient, but may see little growth. The main reason for this is because there are fewer first time buyers and a slower pace of economic growth.
Ontario’s economy is closely linked to the economy of the United States, much more than any of the other Canadian provinces. The current indicators suggest that the economy of the United States is going to be very slow to grow in the next year. This slow economic growth in the United States will affect the economic growth of international exports. Exports currently account for over half of the GDP in the area.
One area that may help the growth of the housing market in Ontario is migration. Approximately seventy-five percent of the growth will come from migration.
When it comes to the housing market the global economy has a large effect. With everything that is going on around the world in regard to the economy, it is hard to predict what will happen. However, in Ontario, Canada one can expect to find many houses available at a great value. Foreclosures are expected to remain low as banks are working with homeowners to help keep people in their homes. However, there are still many foreclosures in the area and someone looking for a home may benefit from considering one of these homes as they are typically at a lower price.