Kingston Resale Home Market to Remain Healthy

KINGSTON, ONTARIO--(Marketwire - May 30, 2011) - Resale housing activity in Kingston will remain relatively healthy in the next two years, predicts Canada Mortgage and Housing Corporation. CMHC released this information today in its latest Housing Market Outlook report for the Kingston Census Metropolitan Area (CMA). Reports are also available for other major metropolitan areas across the country.

Highlights of the report include:

• Sales of existing homes have moderated from levels seen in the first half of 2010 and will decline 3.4 per cent by year end, as pent-up demand has been mostly satisfied. In 2012, however, sales are forecast to increase as strong job gains offset the impact of potentially higher interest rates.
• Expect modest existing home average price growth in 2011, as the number of new-listings outpaces the number of sales. In 2012, the resale home average price in Kingston is projected to increase by 2.0 per cent as the market stabilizes.
• The Kingston Census Metropolitan Area (CMA) total housing starts in 2011 will edge higher, as strong rental demand prompts developers to increase the level of apartment construction which in turn boosts total housing starts. In 2012, starts will inch down and move to a level that is in line with demographic requirements.

"With the same magnitude of adjustment in the number of new-listings and the level of sales activity, the existing home market in Kingston will remain balanced in the next two years. As a result, the average house price growth will follow the national rate of inflation," said Abdul Kargbo, CMHC's Kingston Market Analyst.

Trends in the Kingston CMA housing market generally mirror expectations for the rest of the province.

"Consumer buying patterns, particularly in more expensive southern Ontario markets, will increasingly shift to less expensive housing over the next few years thanks to tighter mortgage market conditions. This bodes well for the apartment ownership and rental sector," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Northern Ontario housing markets are an exception as strong activity in the mining sector and relatively more affordable housing will support growing demand for low density housing," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high 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 informed decisions.

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

Ce document est aussi disponible en français