http://www.thesudburystar.com/ArticleDisplay.aspx?e=3147396

Outlook rosy, says CMHC

By RITA POLIAKOV, THE SUDBURY STAR

Posted 9 hours ago

Greater Sudbury's economic picture will improve this year and next, the Canada Mortgage and Housing Corporation said in a report Monday.

In its Spring Housing Market Outlook for the city, the corporation predicts solid employment growth this year and next will provide a strong foundation for the resale and new home construction market.

The report projects that Greater Sudbury's total employment will increase modestly in 2011 and again in 2012, due to a recovery in the goods-producing and services-producing sector.

"A big factor behind that is the economic story in Sudbury," said Ted Tsiakopoulos, CMHC's Ontario regional economist, in a phone interview.

"A part of Sudbury's economy depends on mining-related activity, and so we do feel that a rebound in commodity prices will likely yield pretty strong investments in Northern Ontario. That's going to fuel job growth."

Most job growth will be full-time, the agency said.

As well, existing home sales in the city will grow to 2,300 and 2,450 units this year and next year, respectively.

"A rebound in commodity price has lifted the local economy," Warren Philp, CMHC's Northern Ontario market analyst, said in a release. "This positive economic news creates positive conditions for housing transactions of all types both this year and next."

Jonathan Laderoute, manager of policy and communication at the Greater Sudbury Chamber of Commerce, is happy with the CMHC's predictions.

"Projected job growth is good," he said.

"We know just from the number and talking to economists and the like that consumer spending is up. The mining sector ... rebounded very, very quickly" following a global economic collapse three years ago.

This affects a number of industries, including supply and construction, which is beginning to boom in Sudbury.

"We know that the community is busy. We're hearing it from our members. "I think first and foremost, we're going to see continuation of activity in the construction and related fields," Laderoute said.

Projects such as Laurentian University's school of architecture and the Victoria Mine, where Quadra FNX Mining Ltd. found more than 3.4 billion pounds of nickel, copper and other metals, will provide job opportunities in Northern Ontario, Laderoute added.

The Ring of Fire is another potential job creator.

Cliffs Resources, one of the companies looking at developing the Ring of Fire, located in northwestern Ontario, is considering Sudbury for a chromite plant. The plant could create more than 500 jobs in the city.

"It'll mean great things. It'll be the next level in terms of how this community moves forward and embraces its expertise in mining," Laderoute said.

Tsiakopoulos said job growth positively affects the housing market.

"Consumer buying patterns, particularly in more expensive southern Ontario markets, will increasingly shift to less expensive housing during the next few years thanks to tighter mortgage market conditions.

" This bodes well for the apartment ownership and rental sector," he said in a release.

"Northern Ontario housing markets are an exception as strong activity in the mining sector and relatively more affordable housing will support growing demand for low density housing."

-- with files from Harold Carmichael