Hamilton Housing Market to Remain Stable in 2014

HAMILTON, ONTARIO--(Marketwired - Nov. 19, 2013) - Hamilton's housing market will remain healthy next year with average prices increasing slightly above inflation, according to Abdul Kargbo, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Hamilton and Brantford. CMHC presented its latest forecast for the Hamilton Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Seminar.

At this year's seminar, entitled 'Profiling Hamilton's Echo Boomer', CMHC market analysts explained how the Echo Boomer demographic will influence homebuying trends in Hamilton and provided an in-depth housing market forecast for 2014.

"The strong rebound in first-time buyer demand will continue to help keep Hamilton's resale market active through the first half of 2014. This will allow existing owners to sell their homes and make second round purchases. In recent years, Hamilton has seen an increase in the number of Echo Boomers bypassing the rental market and moving directly to homeownership," said Abdul Kargbo.

Highlights from today's seminar include:

• Existing home sales will remain strong through the first half of 2014.
• Average house price will grow slightly above inflation in 2014.
• Housing starts will rebound in 2014, reflecting lower inventories and steady population increase.
• Average rental apartment vacancy rate will trend lower in the next two years.
• Job creation will pick up in 2014, as some major manufacturing projects open.

"Housing activity in Ontario will slow in 2013 then stabilize by 2014, thanks in large part to an improving Ontario economy, lower inventories of unsold homes and less out-migration to other provinces. Tight resale market conditions for single detached homes, active repeat buyers and improving income growth will allow demand for lower density homes to hold up better for most of 2014," said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. 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.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

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