Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2010 08:15 ET

St. Catharines-Niagara Housing Starts to Advance in 2010

TORONTO, ONTARIO--(Marketwire - May 19, 2010) - Both the new and resale home markets are recovering, according to the Spring Housing Market Outlook report for the St. Catharines-Niagara Census Metropolitan Area (CMA), released today by Canada Mortgage and Housing Corporation (CMHC). Reports are also available for other major metropolitan areas across the country.

Highlights of the report include:

  • Home sales will grow in St. Catharines-Niagara, reaching 6,200 units in 2010. The pace will decelerate through the second half of the year and into 2011 as mortgage rates gradually creep up. The average price will increase to $218,000 in 2010.
  • As new home construction will benefit from the tight resale market early in 2010, starts will be up 20 per cent to 1,030 homes before slightly moderating into 2011.
  • Local employment gains will support demand for home ownership throughout 2010-2011, mitigating the impact of rising mortgage rates.

"Home buying activity brought forward ahead of mortgage rate increases strengthened both the new and existing home markets in the first half of 2010. Home sales activity will ease off in the remainder of the year, while the supply of homes, motivated by higher prices, will increase," commented Ashot Karapetyan, CMHC Market Analyst for the St. Catharines-Niagara CMA.

"Trends in the St. Catharines-Niagara CMA housing market generally mirror expectations for 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.

For more information, please visit www.cmhc.ca or call 1-800-668-2642.

Aussi disponible en français

Forecast Summary
St. Catharines - Niagara CMA
Spring 2010
  2007 2008 2009 2010f % chg 2011f % chg
Resale Market              
MLS® Sales 6,668 5,896 5,808 6,200 6.7 5,900 -4.8
MLS® New Listings 11,710 12,428 11,691 12,800 9.5 12,500 -2.3
MLS® Average Price ($) 202,314 203,648 209,563 218,000 4.0 220,000 0.9
 
New Home Market              
Starts:              
  Single-Detached 798 680 574 600 4.5 540 -10.0
  Multiples 351 458 285 430 50.9 460 7.0
    Semi-Detached 60 56 42 40 -4.8 40 0.0
    Row/Townhouse 207 288 164 300 82.9 300 0.0
    Apartments 84 114 79 90 13.9 120 33.3
  Starts - Total 1,149 1,138 859 1,030 19.9 1,000 -2.9
 
Average Price ($):              
  Single-Detached 342,933 375,998 368,423 385,000 4.5 390,000 1.3
 
New Housing Price Index (% chg. ) 4.1 4.3 -0.6 2.5 - 2.0 -
 
Rental Market              
October Vacancy Rate (%) 4.0 4.3 4.4 4.4 0.0 4.1 -0.3
Two-bedroom Average Rent (October) ($) 765 777 804 820 - 835 -
 
Economic Overview              
Mortgage Rate (1 year) (%) 6.90 6.70 4.02 4.23 -2.67 5.56 1.54
Mortgage Rate (5 year) (%) 7.07 7.06 5.63 6.20 -0.87 7.06 1.43
Annual Employment Level 193,500 197,400 185,100 190,500 - 195,000 -
Employment Growth (%) 1.7 2.0 -6.2 2.9 - 2.4 -
Unemployment rate (%) 6.8 7.4 10.4 9.9 -0.5 9.3 -0.6
Net Migration (1) -226 512 386 400 14 600 200
 
MLS® is a registered trademark of the Canadian Real Estate Association (CREA).
 
Source: CMHC (Starts and Completions Survey, Market Absorption Survey), adapted from Statistics Canada (CANSIM), CREA, Statistics Canada (CANSIM)
NOTE: Rental universe = Privately initiated rental apartment structures of three units and over; MLS® data includes the St. Catharines, Niagara, and Welland boards
(1) 2009 migration data is forecasted.

Contact Information

  • For additional information please contact / Pour obtenir de
    plus amples renseignements, veuillez communiquer avec:
    or
    St. Catharines-Niagara CMA:
    Canada Mortgage and Housing Corporation
    Ashot Karapetyan
    Market Analyst
    (416) 250-3234
    AKarapet@cmhc-schl.gc.ca
    or
    En francais:
    Canada Mortgage and Housing Corporation
    David Lan
    Senior Market Analyst
    (519) 873-2426
    DLan@cmhc-schl.gc.ca
    or
    Ontario:
    Canada Mortgage and Housing Corporation
    Ted Tsiakopoulos
    Regional Economist
    (416) 218-3407
    TTsiakop@cmhc-schl.gc.ca
    or
    Canada:
    Canada Mortgage and Housing Corporation
    Charles Sauriol
    (613) 748-2799
    csauriol@cmhc.ca
    www.cmhc.ca