Waterloo Region Housing Demand to Remain Stable in 2014

KITCHENER, ONTARIO--(Marketwired - Nov. 27, 2013) - The children of the Baby Boomers - the Echo Boomers - are coming of age and will soon hit the homeownership market. This large group of Echo Boomers will keep housing demand stable, according to Anthony Passarelli, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Waterloo Region. CMHC presented its latest forecast for the Waterloo Region Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Seminar.

At this year's seminar, entitled 'Profiling Waterloo Region's Echo Boomer', CMHC market analysts explained how the Echo Boomer demographic will influence homebuying trends in the Waterloo Region and provided an in-depth housing market forecast for 2014.

"Echo Boomers entering the market, jobs and in-migration will keep next year's home sales and the demand for rental accommodations at respectable levels," said Anthony Passarelli.

Highlights from today's seminar include:

• The resale market will soften slightly in 2014 but will remain balanced.
• Housing starts will increase next year, primarily due to greater apartment construction.
• Growth in the supply of rental housing stock will compensate for the increase in rental housing demand.

"Housing activity in Ontario will slow in 2013 then stabilize by 2014, thanks in large part to an improving Ontario economy, lower inventories of unsold homes and less out-migration to other provinces. Tight resale market conditions for single detached homes, active repeat buyers and improving income growth will allow demand for lower density homes to hold up better for most of 2014," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. 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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