New Home Construction to Increase in 2015 and to Stabilize the Year After

TORONTO, ONTARIO--(Marketwired - Oct. 30, 2014) - The Canada Mortgage and Housing Corporation (CMHC) released its Fall 2014 Housing Market Outlook report for the Peterborough Census Metropolitan Area (CMA) today. New home starts are forecast to increase to 290 units in 2015 from 260 units in 2014. Developers will place more emphasis on semi-detached and row housing, since it is less expensive than single-detached dwellings. It is expected that in 2015 and 2016 multi-unit construction will exceed the 2014 level, while single-detached home construction will remain close to 200 units annually over the forecast horizon. Existing home sales in 2015 will be in line with the 2014 results, but will decline slightly in 2016. Balanced market conditions will lead to modest growth in resale prices through 2015 and 2016.

"Modest growth in employment into 2015 will sustain housing demand. The growth will come from export-related manufacturing jobs and the service sector. As unsold inventories work their way through the market, demand for the less expensive housing types, such as semi-detached and row houses will strengthen," said Olga Golozub, CMHC Market Analyst for the Peterborough CMA.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high 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. CMHC Market Analysis standard reports are also available free for download at CMHC Housing Market Information.

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