Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

October 26, 2015 08:15 ET

Housing Market Outlook for 2016-2017 Sherbrooke CMA

MONTRÉAL, QUÉBEC--(Marketwired - Oct. 26, 2015) - According to the fourth quarter 2015 issue of the Housing Market Outlook - Sherbrooke report released by Canada Mortgage and Housing Corporation (CMHC), housing starts will reach 1,250 units this year, 1,100 next year and 1,150 in 2017 in the Sherbrooke census metropolitan area (CMA). Centris® sales, for their part, will attain 1,725 this year, and increase to 1,800 units and 1,850, respectively, in 2016 and 2017.

"With the resale market favouring buyers and the inventory of new units being relatively significant, the pace of residential construction will remain at historically low levels over the forecast horizon. Also, it should be recalled that, given the slower household growth, the annual need for new housing will be essentially lower than before in the CMA," said Marie-Claude Guillotte, Senior Market Analyst at CMHC.

On the resale market, activity picked up in 2015 and should continue to do so in 2016 and 2017. Net gains in employment, combined with the low mortgage rates, will attract more buyers to the market. "Even with the rise in housing demand, this will not be sufficient to significantly reduce the number of properties for sale on the existing home market. As a result, the soft conditions will continue to limit price growth," she added. Over the next two years, the average Centris® price of residential properties will rise by just 1.0 per cent, on average, to $233,000.

On the rental housing market, the vacancy rate will increase marginally this year (5.6 per cent) and next year (5.8 per cent) as apartment supply will slightly outstrip demand. In 2017, the vacancy rate will remain high at 5.8 per cent.

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.

Follow CMHC on Twitter @CMHC_ca.

To view the table associated with this release, please visit the following link: http://media3.marketwire.com/docs/1029722e.pdf.

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