Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 30, 2011 08:15 ET

Hamilton and Brantford Housing Starts to Rise in 2012

TORONTO, ONTARIO--(Marketwire - May 30, 2011) - New home starts will be subdued in 2011 as compared to a year ago, according to the Spring Housing Market Outlook report for the Hamilton and Brantford Census Metropolitan Areas (CMAs) released today by CMHC. Reports are also available for all major metropolitan centres across the country.

Highlights of the report include:

  • MLS® sales and new listings will trend lower for most of 2011 before rising in step with stronger economic and employment conditions in 2012. The average price for an existing home will increase moderately in both Hamilton and Brantford.
  • Limited land availability in some areas and an expected increase in mortgage rates will translate into lower starts. Rising prices of new homes will also lead to some buyers choosing a less expensive new home or look in the resale market.
  • A moderate increase in the number of jobs and in the labour force throughout 2011 and into 2012 will support housing demand.

"The decline in demand for housing stems from the rising cost of home ownership and slow recovery of jobs" said Sarah Fong, CMHC's Senior Market Analyst for Hamilton and Brantford. "However, better job prospects are forecast for 2012, and demand for housing is expected to follow." added Fong.

"Consumer buying patterns, particularly in more expensive southern Ontario markets, will increasingly shift to less expensive housing over the next few years thanks to tighter mortgage market conditions. This bodes well for the apartment ownership and rental sector," said Ted Tsiakopoulos, CMHC's Ontario regional economist "Northern Ontario housing markets are an exception as strong activity in the mining sector and relatively more affordable housing will support growing demand for low density housing," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

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