Monday 26 October 2015

Hamilton Housing Starts to Stabilize in 2016 as Existing Home Sales Decline in Next 2 Years

TORONTO, ONTARIO--(Marketwired - Oct. 26, 2015) - According to Canada Mortgage and Housing Corporation's (CMHC) Fall Housing Market Outlook report for the Hamilton Census Metropolitan Areas (CMA), total housing starts will stabilize near 2,400 units in 2016 and 2017 following a decline in 2015. Fewer single-detached housing starts in 2017 will be mostly offset by more multi-unit starts. High mortgage carrying costs will result in lower demand for single-detached housing in 2017, as this type of dwelling is less affordable compared to multi-unit housing. Existing home sales will decline from 15,000 units in 2015 to 14,000 units in 2016 and 13,600 in 2017.

"Relative to the Greater Toronto Area (GTA), Hamilton is still considered a more affordable housing market and will continue to attract potential homebuyers from the less affordable municipalities," said Abdul Kargbo, CMHC Senior Market Analyst for the Hamilton and Brantford. "As home prices continue to rise in the GTA coupled with a gradual increase in mortgage rates, carrying a mortgage will become a greater challenge in 2017."

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.

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