Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

October 26, 2015 13:52 ET

CORRECTION FROM SOURCE: Housing Market Outlook for 2015, 2016 and 2017 Trois-Rivieres CMA

MONTRÉAL, QUÉBEC--(Marketwired - Oct. 26, 2015) -

This document corrects and replaces the press release that was sent today at 8:15 am ET. The table ''Forecast Summary - Fall 2015'' was updated.

According to the fourth quarter 2015 issue of the Housing Market Outlook report released by Canada Mortgage and Housing Corporation (CMHC), housing starts in the Trois-Rivières census metropolitan area (CMA) will reach 500 units in 2016 and 550 in 2017. Centris® sales, for their part, will attain 1,050 in 2016 and 1,000 in 2017.

Annual housing starts in the Trois-Rivières CMA will decrease significantly (- 47 per cent) by the end of 2015 and then stabilize in 2016. "The significant supply of existing properties for sale and the relatively high inventory of new units (completed and unsold) will explain in part the decrease in construction activity. Also, the moderation in household growth will weigh down even more heavily on the start of new units," said Tania Bourassa-Ochoa, Market Analyst at CMHC. In 2017, the pace of construction will pick up slightly (+10 per cent). "In 2017, some larger projects will be started, which should translate into a slight pickup in activity," added Ms Bourassa-Ochoa.

After peaking at 1,117 units in 2014, Centris® sales reaching 1,100 units in 2015 (-2 per cent) and then 1,050 will fall slightly in 2016 (-5 per cent) and 2017. "The shrinking of the pool of first-time and repeat buyers in the region and will explain in large part the slight slowdown in activity that will be observed on the existing home market in 2016 and 2017. In addition, the expected increase in interest rates at the end of the forecast horizon will limit to a lesser extent the borrowing capacity, particularly among first-time buyers," said Tania Bourassa-Ochoa. The average Centris® price of residential properties will slightly rise (about 1 per cent) in 2016 and 2017, reaching $168,000.

Lastly, the weaker pace of rental apartment construction, combined with a stronger demand, will see market conditions tighten slightly over the forecast horizon. The vacancy rate will fall to 5.1 per cent in 2015, 4.8 per cent in 2016 and 4.6 per cent in 2017. The average monthly rent for two-bedroom apartments will reach $575 this year, $580 in 2016 and $585 in 2017.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

Follow CMHC on Twitter @CMHC_ca.

A table is available at the following address: http://media3.marketwire.com/docs/Forecasts_tableE.pdf

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