Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 17, 2010 08:15 ET

Peterborough Housing Market Slowing

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2010) - Canada Mortgage and Housing Corporation (CMHC) released its Fall Housing Market Outlook report for the Peterborough Census Metropolitan Area (CMA). Demand for both new and existing homes will recover gradually in 2011 from the drop in the last half of 2010. The drop occurred because sales were pulled forward from the second to the first half as consumers bought ahead of expected mortgage rate increases.

Highlights of this report include:

  • The pull forward of sales in both the resale and new home markets will dampen demand in the final quarter of 2010 and early 2011

  • Existing home sales will bottom out in the fourth quarter of 2010 and will pick up slightly throughout 2011. However, on average, sales will decline in 2011.

  • Starts will follow the same pattern as the resale market, declining in late 2010 and recovering throughout 2011. The decline between the average levels from 2010 to 2011 will be more pronounced than in the resale market. 

"With employment stabilizing and mortgage rates remaining low, housing sales and new construction are stabilizing as well," said Abdellah Massaoudi, CMHC Market Analyst for the Peterborough area. "Meanwhile, intra-provincial migration, especially from southern Ontario, will support a gradual increase in housing demand in Peterborough," added Massaoudi.

"While Ontario home sales and prices have moderated since early this year, Ontario housing activity is now more in line with economic conditions. This ensures more stability in housing markets in the months ahead," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "This transition in housing activity has been orderly thanks to improving job markets and historically low interest rates."

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: CMHC
    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) 816-5978
    csauriol@cmhc.ca