• The Toronto job market is strong (2.5% growth in 2004 and a 2.8% in 2005), strong employment growth leads to continued real estate growth.
  
  
• Greater percentage of 45-64yrs landing jobs, in turn boosting repeat home buyer demand. 
  
  
• A shift from new to resales.  As the price of new homes has risen over the past few years, we will see resale homes gain more market share.  As a percentage of Total home sales, resales were at a low of approx. 58% in 2002 but, it is forecasted they will consist of approx. 68% by 2005.
  
  
• Resales will regain a greater market share due to newer existing inventory, more modest price increases and higher home equity.  This repeat buying will trigger more supply.......
  
  
• New home detached prices are starting to match resale prices.... they will become less affordable.  This is in part due to the diminishing land supply, which in turn is putting pressure on lot prices and new home prices.
  
  
• There will be a shift from detached homes to semis and townhome/rows, as detached become more expensive. 
  
  
• The modestly priced suburban areas will see the strongest price increases in the coming year.  Oakville leads all suburban markets with approx. 68% sales to new listings, Mississauga is second with approx. 57% sales to new listings.

Source: CMHC Forecast for 2005