London Housing Market to See a Modest Improvement in 2014

LONDON, ONTARIO--(Marketwired - Oct. 31, 2013) - London's housing market will see more home construction and increased existing home sales next year. A balanced resale market will lead to prices rising at a slightly slower pace according to Alexander Bonnyman, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for London. CMHC presented its latest forecast for the London Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Seminar.

At this year's seminar, entitled 'Profiling London's Echo Boomer', CMHC market analysts explained how the Echo Boomer demographic will influence homebuying trends in London and provided an in-depth housing market forecast for 2014.

"The leading edge of the echo boom population in London is beginning to enter the homeownership market. Echo Boomers will support resale market activity, especially the more affordable housing options," said Alexander Bonnyman.

Highlights from today's seminar include:

• MLS sales will increase slightly with more affordable options doing well while the market overall remains in balance.

• New home construction will increase in 2014, led by single-detached homes and another strong year of row home construction.

• The rental market vacancy rate will decrease in 2014 as jobs and newcomers to London add to rental demand.

"Housing activity in Ontario will slow in 2013 then stabilize by 2014, thanks in large part to an improving Ontario economy, lower inventories of unsold homes and less out-migration to other provinces. Tight resale market conditions for single detached homes, active repeat buyers and improving income growth will allow demand for lower density homes to hold up better for most of 2014," said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist.

London's Housing Market Outlook report was also released today by CMHC. This forecast document provides the foundation for the detail provided at the Housing Outlook Seminar and can be accessed here: Housing Market Outlook - London.

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 housing solutions. 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.