"Relative to the GTA, Hamilton is still considered a more affordable housing market and will continue to attract potential homebuyers from the less affordable parts of the GTA," 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."
At this year's Hamilton Housing Outlook Conference (#HOCHAM), titled 'Your Guide to Hamilton's Housing Market', CMHC housing market analysts provided an in-depth forecast for 2016-2017, and explained how economic and demographic trends will impact the housing industry in Hamilton.
Highlights from today's conference included:
- Average home price will grow by 3.7 per cent in 2016 and 2.5 per cent in 2017
- Existing home sales will drop to 14,000 in 2016 and 13,600 in 2017
- Total housing starts will stabilize near 2,400 units in 2016 and 2017
- Apartment vacancy rate will drop to 2.2 per cent in 2016 and 2.0 percent in 2017
"Despite improving economic performance, Ontario housing activity is expected to slow over the forecast period as the cost of owning a home continues to increase," said Ted Tsiakopoulos, CMHC Regional Economist. "However, some segments of the housing market will do better than others. Homes in south western and southern Ontario markets bordering the GTA tend to be more affordable, thus we expect a lot of activity in those centers as we do for high-density housing which includes less expensive rental accommodation."
As Canada's national housing agency, CMHC draws on 70 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.