Waterloo Region to See Steady Housing Market in 2016

KITCHENER, ONTARIO--(Marketwired - Nov. 10, 2015) - Housing starts in Kitchener-Cambridge-Waterloo (KCW) will decline in 2016 and remain stable in 2017. Apartment starts will decrease from near-record levels in 2014. Single-detached starts are predicted to trend higher.

"Demand for new housing will be trending down closer to the long-term rate of household formation next year," said Erica McLerie, Senior Market Analyst, CMHC. "Rising employment will support stronger existing home sales, but with prices higher and mortgage rates starting to edge up in late 2016, demand will stabilize in 2017."

At this year's KCW Housing Outlook Conference (#HOCKW), titled 'Your Guide to KCW's Housing Market', CMHC housing market analysts provided an in-depth forecast for 2016, and explained how economic and demographic trends will impact the housing industry in KCW.

Highlights from today's conference included:

• Housing starts will decline to 2,615 units in 2016, and be stable in 2017.
• Existing home sales are forecasted to increase in 2016 and remain the same in 2017.
• The resale market is expected to be balanced with price growth above two per cent.
• The apartment vacancy rate is predicted to increase slightly in 2016, due to an increase in the supply of rental housing.

"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.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

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