Canada Mortgage and Housing Corporation has release their Housing Market Outlook for 2012 and here are the top 7 trends impacting housing:

Mortgage Rates: Short term mortgage rates and variable mortgage rates are expected to remain at historically low levels. The outlook also assumes that mortgage rates will remain relatively flat until late in 2012. This will continue to support housing demand.

Employment: In the last 12 months to September, employment has grown by 1.7% (+294,000), primarily in Ontario and Alberta.

Income: Growth in incomes improved in 2010 because of the economic recovery and the resulting improvement in the labour market. Income will continue to grow at a slower pace in 2011 and 2012.

Net Migration: Better prospects for the Canadian economy relative to other economies is expected to attract more immigrants (net international migration) which, in turn, will push net migration up in 2012. This will have a positive impact on housing demand. Total net migration stood at 244,573 in 2010. In 2011, net migration is expected to decrease to 232,795. By 2012, however, net migration is expected to rebound to 255,900 which will help support Canada's housing sector.

Natural Population: The low birth rate is the major factor in the slowing of growth in the natural populations (birth minus deaths).

Resale Market: Market conditions for most of 2011 and 2012 are expected to be in balanced market territory. In comparison to sellers' market conditions, balanced market conditions typically lead to more moderate housing starts activity.

Vacancy Rates: Modest rental construction and strong rental demand due to high immigration will be partly offset by increased competition from the condo market. As a result, vacancy rates across Canada's metropolitan centres will remain relatively stable this year and next.

You can download the original report from CMHC at: www.cmhc.ca/housingmarketinformation