Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 18, 2016 08:15 ET

Home Purchases to Ease in 2016

TORONTO, ONTARIO--(Marketwired - May 18, 2016) - According to Canada Mortgage and Housing Corporation's (CMHC) Spring Housing Market Outlook report, released today for the St. Catharines-Niagara Census Metropolitan Area (CMA), housing starts will decrease and range between 1,600 and 1,700 units in 2016 and decrease further in 2017 and range between 1,500 and 1,700 units. Single-detached starts will remain relatively unchanged in 2016 from 2015 but fewer starts of all other dwelling types will push total starts lower. Slightly fewer single-detached home starts will cause total starts to decrease in 2017.

Existing home sales will range between 6,600 and 6,700 in 2016 and edge slightly lower in 2017 to fall between 6,500 and 6,600. The resale market will favour sellers in 2016 and 2017. The average price for existing homes will increase in 2016 and range between $289,400 and $291,400 and increase further in 2017 and range between $291,400 and $309,800.

"Home purchases will decrease in 2016. Wage and job growth, particularly full-time employment, will continue to support housing demand, but with many buyers completing their purchases in 2015, both existing home sales and starts will ease this year. Increased mortgage rates, higher home prices and moderate wage growth will erode affordability slightly in 2017 and exert further downward pressure on housing demand," said Edgard Navarrete, CMHC Market Analyst for the St. Catharines-Niagara CMA.

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

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As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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