Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 18, 2016 08:15 ET

Guelph Housing Starts to Trend Lower

TORONTO, ONTARIO--(Marketwired - May 18, 2016) - Housing starts in the Guelph Census Metropolitan Area (CMA) are expected to trend lower and range between 900 units and 1,100 units in 2016 and between 800 and 1,100 units in 2017, according to the Canada Mortgage and Housing Corporation's (CMHC) Spring Housing Market Outlook released today. Apartment starts will decline further from near record levels in 2014, while starts of ground-oriented housing will remain relatively stable.

Existing home sales are expected to trend higher, ranging between 3,100 units and 3,300 units in 2016 and between 3,100 units and 3,500 units in 2017. The resale market will continue to favour sellers in Guelph. Prices will continue to increase, ranging between $393,800 and $416,200 in 2016 and between $406,800 and $433,200 in 2017. The apartment vacancy rate is forecast to increase slightly in both 2016 and 2017, primarily due to an increase in the supply of rental housing.

"Strong employment and population growth will continue to support housing demand. Both new home construction and existing home sales will remain at strong levels," said Erica McLerie, CMHC Senior Market Analyst. "Housing starts will be trending down closer to the long-term rate of household formation. The existing home market will continue to favour sellers and price growth will continue to exceed the rate of inflation. Prices are expected to rise faster than incomes and affordability will erode slightly. However, Guelph will remain an affordable option for GTA households looking to purchase a home."

The national, regional and CMA HMO reports are available here.

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