Peterborough Housing Market Slowing

TORONTO, ONTARIO--(Marketwire - May 30, 2011) - Canada Mortgage and Housing Corporation (CMHC) released its Spring Housing Market Outlook report for the Peterborough Census Metropolitan Area (CMA). Demand for both new and existing homes will decrease in 2011. Demand is down because much of it was satisfied during a sales surge in the first half of 2010, and because employment has been slow to recover.

Highlights of this report include:

• Existing home sales have moderated and are expected to stabilize later this year but increase gradually in 2012. However, on average, sales will be lower in 2011 compared to the previous year.

• Starts will follow the same pattern as the resale market, declining in 2011, before recovering in 2012. The decline between the average levels from 2010 to 2011 will be more pronounced than in the resale market.

• Improving labour market conditions and rising incomes will help partially offset the impact on housing demand of increasing mortgage carrying costs.

"The current recovery in employment will strengthen through 2011." said Abdellah Massaoudi, CMHC Market Analyst for the Peterborough area. "With Peterborough's reputation as an attractive retirement community, baby boomers who are retiring or nearing retirement will continue to move in from surrounding regions. This inflow will support demand for both new and existing homes," added Massaoudi.

"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 high 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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