Hamilton Housing Market to Remain Steady in 2012

HAMILTON, ONTARIO--(Marketwire - Nov. 17, 2011) - Housing demand in the Hamilton Census Metropolitan Area (CMA) will remain steady in 2012 despite slower economic growth and uncertainty in global financial markets, according to Sarah Fong, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Hamilton. CMHC presented its latest forecast for the Hamilton CMA today at the annual CMHC Housing Outlook Seminar.

At this year's seminar, entitled, 'The Numbers behind the Stories,' market analysts used local CMHC data to answer questions that housing-industry professionals hear every day – addressing the concerns of Hamilton's home buyers and sellers.

"The story for 2012 continues from this year – more repeat buyers looking to move up," said Sarah Fong. "Given the rising home prices in recent years, coupled with the challenges of the job market, some first time buyers will choose to stay in the rental market next year," added Fong.

Highlights from today's seminar include:

• MLS® sales will reach 13,500 units in the Hamilton Census Metropolitan Area (CMA) and the average price for an existing home will increase to $334,500.
  
  
• Starts will reach close to 2,250 units in the Hamilton CMA. Some of the demand will shift to the resale market where homes are relatively lower priced, and there will be a sustained high number of listings.
  
  
• Modest increase in the number of jobs will reduce the unemployment rate to 7.1 in Hamilton CMA.
  
  

"Housing demand in Ontario will continue shifting to less expensive, higher density housing in 2012 due to slower economic growth and a diminishing appetite for big ticket spending. This will support demand for resale homes, apartment ownership and rental accommodation," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "However, demand for more expensive single detached housing will hold up better in Northern Ontario and in urban markets bordering the GTA," added Tsiakopoulos.

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 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 vital decisions.

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