Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 20, 2010 15:12 ET

Peterborough Housing Market Recovers

TORONTO, ONTARIO--(Marketwire - May 20, 2010) - Canada Mortgage and Housing Corporation (CMHC) released its Spring Housing Market Outlook report for the Peterborough Census Metropolitan Area (CMA). The rebound triggered by low mortgage rates will ensure both 2010 new construction and existing home sales will be up from the previous year. However, in 2011 both starts and existing homes sale will soften.

Highlights of this report include:

  • Existing home sales will reach 2,530 in 2010 and decline about nine per cent in 2011 as rising mortgage carrying costs dampen housing demand.
  • Peterborough home prices will grow and reach $247,000 this year before price growth moderates into 2011.
  • New construction is shifting towards smaller homes. Total starts will grow by 15 per cent reaching 425 homes in 2010, before easing back in 2011. Starts of all dwelling types will be up in 2010.

"Even with a challenging employment picture in this year, Peterborough housing demand will remain relatively strong," said Abdellah Massaoudi, CMHC Market Analyst for the Peterborough area. "Moreover, public investment in the area is expected to stimulate private sector investment and generate more employment opportunities in the future." added Massaoudi.

Trends in the Peterborough CMA generally mirror expectations in the rest of the province.

"Higher mortgage carrying costs, increasing supply pressures and declining first time buyer demand will temper Ontario housing activity later this year and into 2011," said Ted Tsiakopoulos, CMHC's Ontario regional economist "This transition in housing activity should be orderly thanks to improving job markets, historically low interest rates and further gains in household incomes," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on more than 60 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 vital decisions, visit www.cmhc.ca or call 1 800 668-2642.

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Contact Information

  • For additional information please contact / Pour obtenir de
    plus amples renseignements, veuillez communiquer avec:
    Local in English or French:
    Canada Mortgage and Housing Corporation, Abdellah Massaoudi
    (416) 218-3461
    amassaou@cmhc.ca
    or
    Ontario:
    Canada Mortgage and Housing Corporation
    Ted Tsiakopoulos
    (416) 218-3407
    ttsiakop@cmhc.ca
    or
    Canada:
    Canada Mortgage and Housing Corporation
    Charles Sauriol
    Office: (613) 748-2799 or Cell: (613) 316-2949
    csauriol@cmhc.ca