Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 30, 2011 08:15 ET

Lower Housing Demand in Kitchener-Guelph

TORONTO, ONTARIO--(Marketwire - May 30, 2011) - The Canada Mortgage and Housing Corporation (CMHC) released its Spring Housing Market Outlook report for the Kitchener-Cambridge-Waterloo and Guelph Census Metropolitan Areas (CMAS) today. Demand for both new and resale homes will decrease in 2011. Resale home price growth will moderate in 2011.

Highlights of this report include:

  • Sales will moderate through the remainder of 2011 and pick up into 2012.
  • New listings will remain high, and the market will be more balanced but favour sellers for much of the year.
  • New home construction will fall back from the stronger level in 2010 and will gain strength later in 2011.
  • Higher employment and population growth will support housing demand by 2012.

"The housing markets will be more stable in 2011, and with an improving economy, demand will pick up later in 2011 and into 2012," said Erica McLerie, CMHC Senior Market Analyst for the Kitchener CMA. "Higher mortgage rates by late 2011 will cause some first-time buyers to postpone their home purchase, but stronger labour market conditions and increased in-migration will more than offset the drag on sales from fewer first-time buyers."

"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 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.

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