Hey Bloggers – CMHC (Canada Mortgage and Housing Corporation) just sent me their fall press release for the St.Catharines area. In summary, the resale home market will remain strong for 2008 but new construction will decline.
FOR IMMEDIATE RELEASE
Resale home market will be strong, but construction will retreat
TORONTO, NOVEMBER 6, 2007 – Canada Mortgage and Housing Corporation (CMHC)
released its latest forecast for the St. Catharines Niagara Census Metropolitan Area (CMA) today in the St. Catharines-Niagara Housing Market Outlook, Fall 2007 edition. Reports are also available for Canada and other major metropolitan areas across the country.
Highlights of the Housing Market Outlook Report include:
• MLS® sales will remain high and close to the record set in 2004. About 6,600
units are expected to change hands in 2008, only 1.5 per cent lower than the
peak in 2004.
• With new listings growing faster than sales, the resale home market will become
more balanced. Price growth will ease to about four per cent in 2008.
• New home construction will continue to retreat in 2008 and will total 930 units.
Competition from the resale market will result in fewer new single-detached
starts. Multiple-family home starts will be very close to the level seen in 2007.
• Employment will remain flat. The strong Canadian dollar and high energy costs
will continue to impact the manufacturing and tourism sectors negatively.
“Affordability will be key to housing demand,” said David Lan, St Catharines-Niagara Market Analyst. “Low mortgage carrying costs and respectable income growth in the service sector will drive demand for medium-priced resale homes. Spill-over demand to the new home market will be limited. New single-detached home starts will retreat because their higher prices will drive many consumers back to the much more affordable resale home market.
“A combination of a slowing U.S economy, strong Canadian dollar vis-à-vis the U.S. dollar, and moderate inflation will help keep Canadian interest and mortgage rates low over the remainder of this year and in 2008”, added Lan.
Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency for over 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country. For more information, visit www.cmhc.ca or call 1 800 668-2642.
For further information, please contact:
St. Catharines-Niagara CMA: David Lan, Market Analyst, (416) 218-3424
Ontario: Ted Tsiakopoulos, Regional Economist, (416) 218-3407
Canada: Bob Dugan, Chief Economist (613) 748-4009