St. Catharines-Niagara Housing Starts to Move Lower in 2011

TORONTO, ONTARIO--(Marketwire - May 30, 2011) - Both the new and resale home markets will stabilize for the remainder of the year, before picking up in the fourth quarter and next year, according to the 2011 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 in Niagara will decline in 2011, but regain most of the lost territory in 2012, supported by increasing employment.

• On average, home price growth will match inflation over the next two years, but the pace will accelerate in 2012 as the resale market tightens up.

• With less demand spilling over from the resale market to the new home market, housing starts will decline by almost nine percent in 2011 but recover fully the next year.

"As economic and employment conditions continue to improve, home buying activity will increase in the fourth quarter of 2011 and into 2012 as buyers return to the market," said Anthony Adrien, Market Analyst for St. Catharines-Niagara. "Increased migration to Niagara Region will also support demand for housing. Niagara Region remains an affordable and attractive place to purchase a home compared to other centers, such as the Greater Toronto Area." added Adrien.

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

Aussi disponible en français