Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 18, 2016 08:15 ET

Hamilton Housing Starts Will Rebound in 2016

TORONTO, ONTARIO--(Marketwired - May 18, 2016) - According to Canada Mortgage and Housing Corporation's (CMHC) Spring Housing Market Outlook report for the Hamilton Census Metropolitan Areas (CMA), total housing starts will rebound from the steep decline that occurred in 2015. Specifically, total housing starts will lie within the 2,550 to 2,900 unit range in 2016. Total housing starts will fall between 2,400 and 2,800 units in 2017. The projected increase in total housing starts will be supported primarily by a strong multi-unit housing construction.

Existing home sales will continue their upward trend reaching the 16,200 to 17,000 unit range in 2016. Existing home sales will fall between 15,800 and 16,600 units in 2017. In line with strong sellers' market conditions, the average existing home price will be in the $463,000 to $487,000 range in 2016 and then average between $468,000 and $510,000 in 2017.

"A tight resale market where the supply of affordable homes is limited will propel some buyers to purchase less expensive types of new homes. This in turn will support multi-unit housing starts in the next two years," said Abdul Kargbo, CMHC Senior Market Analyst for the Hamilton and Brantford. "Gains in total employment, positive net intra-provincial migration and low mortgage rates will continue to support housing demand in Hamilton. Home ownership affordability remains favourable, as the Hamilton area continues to attract buyers from the Greater Toronto Area (GTA) where home prices continue to trend up."

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

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