CORRECTION FROM SOURCE: Housing Market Outlook for 2016 and 2017 Quebec CMA

QUÉBEC CITY, 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), the new home market is bound to slow down over the coming years in the Québec census metropolitan area (CMA). Housing starts will fall from 4,625 units in 2015 to 3,550 in 2016 and then to 3,125 in 2017.

"The slowdown will be mainly explained by the increase in the supply of existing properties for sale, the still relatively significant inventory of new unsold condominiums and the softening of the conventional rental housing market," said Élisabeth Koulouris, CMHC's Principal, Market Analysis, for the Québec CMA.

"On the existing home market, with the solid job market, the low interest rates and the wider choice of homes for sale, Centris^® transactions will rise by 4 per cent in 2016 and 3 per cent in 2017," she added. In all, sales will reach 7,000 units in 2016 and 7,200 units in 2017. Also, market conditions will favour buyers and will result in small gains in the average price of residential properties: 1 per cent in 2016 and 1.5 per cent in 2017.

Finally, on the rental market, the relatively significant growth in supply, along with a slowing demand, will cause the market to ease from now until 2017. The vacancy rate will therefore climb from 3.1 per cent in 2014 to 3.8 per cent in 2015, 4.5 per cent in 2016 and then 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.

(Ce document existe également en français.)

A table is available at the following address:

http://media3.marketwire.com/docs/Forecasts_tableE.pdf