Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 25, 2015 08:15 ET

Steady Demand for Housing in Kitchener-Guelph

TORONTO, ONTARIO--(Marketwired - May 25, 2015) - The Canada Mortgage and Housing Corporation (CMHC) released its Spring Housing Market Outlook report for the Kitchener-Cambridge-Waterloo (KCW) and Guelph Census Metropolitan Areas (CMAs) today. Housing starts in KCW will decrease to 2,925 units in 2015 and then be relatively stable at 2,875 units in 2016. Housing starts in Guelph will decrease to 950 units in 2015 and then edge up to 975 units in 2016. Apartment starts this year in both CMAs will retreat from near record levels in 2014.

Existing home sales will increase in 2015 and 2016 in both CMAs. The resale market will be balanced in KCW, causing the average price of a resale home to appreciate close to two per cent in 2015 and 2016. Guelph's resale market will favour sellers, leading to greater price growth than in KCW over the forecast period. The apartment vacancy rate will increase slightly in both CMAs in 2015, primarily due to an increase in the supply of rental housing.

"Stronger labour markets and population growth will support housing demand in 2015 and 2016 in both Kitchener-Cambridge-Waterloo and Guelph. Higher prices and mortgage rates starting to edge up in early 2016 will cause demand to stabilize next year," said Erica McLerie, CMHC Senior Market Analyst.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at CMHC Housing Market Information.

Follow CMHC on Twitter @CMHC_ca

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