Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

October 26, 2015 14:06 ET

CORRECTION FROM SOURCE: Housing Market Outlook for 2015, 2016 and 2017 Saguenay CMA

QUÉBEC, 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), activity on the residential real estate market in the Saguenay census metropolitan area (CMA) will slow down. In all, 550 housing starts should be enumerated in 2015, 500 in 2016 and then 450 in 2017.

"The decrease in the number of first-time homebuyers as well as the greater choice of existing properties for sale will cause residential construction to moderate in Saguenay. Also, the rise in inventories of unabsorbed condominiums and semi-detached homes will prompt builders to slow their pace of production," said Etienne Pinel, Market Analyst at CMHC.

Following a decline in 2014, Centris® sales will decrease again in 2015, before rising in 2016 and 2017. Their level will be below the average for the last ten years. Overall, 1,100 residential properties will change hands in 2015 (-4 per cent), 1,200 in 2016 (+9 per cent) and 1,300 in 2017 (+8 per cent). "The recent decrease in prices of homes listed on the resale market will widen the gap with prices on the new home market and should attract more buyers. Also, the low mortgage rates will support Centris® sales over the next two years," added Pinel. According to CMHC, market conditions will continue to favour buyers in the CMA. As a result, the average price of existing homes will reach $183,000 in 2015 (-3.5 per cent), $180,000 in 2016 (-1.6 per cent) and then $177,000 in 2017 (-1.7 per cent).

The increase in the supply of rental housing units will drive up the percentage of vacant units, especially in a context where demand is stable. The rental housing vacancy rate will therefore rise to 4.4 per cent in 2015, 4.7 per cent in 2016 and 5.0 per cent 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.

To view the table associated with this release, please visit the following link: http://media3.marketwire.com/docs/Forecasts_tableE.pdf

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