Adding another item to the "Things we already knew" file, the Canada Mortgage and Housing Corporation announced Wednesday that Toronto’s housing market will slow (cue the dun-dun-dun music).

Shaun Hildebrand, CMHC’s senior market analyst, said 2010 will be a "highlight year" for the resale market but will also represent a turning point.

"Lowered purchasing intentions from first-time buyers will weigh on sales at a time when existing owners will be more interested in selling their homes. The result will be much slower price growth than the market is used to seeing," Hildebrand said.

The good news, says Hildebrand, is that the local economy is creating jobs.

"This will help with affordability conditions as interest rates move higher, thereby supporting sales and housing construction in the GTA," he said.

Highlights of the report include:

• MLS(R) sales in the GTA will hit a record high 101,000 this year. Average prices for 2010 will increase to $444,000. Both sales and price growth will begin to show significant moderation in the second half of this year and early next year.
• New home sales will jump to 42,000 in 2010 thanks to a 50 per cent increase in high rise sales. Housing starts will rise by 34 per cent this year to reach 36,400 units on strong single-detached construction.