Hamilton and Brantford Housing Starts to Rise in 2010
http://www.marketwire.com/press-rele...10-1263619.htm
TORONTO, ONTARIO--(Marketwire - May 19, 2010) - New home starts will increase moderately in 2010 as compared to a year ago, according to the Spring Housing Market Outlook report for the Hamilton and Brantford Census Metropolitan Areas (CMAs) released today by CMHC. Reports are also available for all major metropolitan centres across the country.
Highlights of the report include:
•MLS® sales will reach 13,600 units in the Hamilton Census Metropolitan Area (CMA) and 1,950 in the Brantford CMA. Rising mortgage rates will slow down the pace of sales and prices through the end of 2010 and into 2011. The average price for an existing home will increase to $315,000 and $229,000 in Hamilton and Brantford, respectively.
•Starts will reach close to 3,000 units in the Hamilton CMA and just over 400 in the Brantford CMA. Land availability and higher prices for new homes will shift some building activity towards townhouses and apartments in Hamilton. In Brantford, the escalating prices for new single-detached homes may shift housing demand towards the relatively less expensive resale market.
•Continuing investments into growing sectors in the Hamilton CMA will put more people into jobs and reduce the unemployment rate to 8.1 per cent in 2010. In the Brantford CMA, employment will hold steady through 2010 before improving in 2011.
"Both the new home and resale markets will recover moderately this year," said Sarah Fong, CMHC's Senior Market Analyst for Hamilton and Brantford. "Construction in the new home market will shift towards higher density, lower-priced homes such as townhouses and will continue to face competition from the well-supplied resale market." added Fong.
"Higher mortgage carrying costs, increasing supply pressures and declining first time buyer demand will temper Ontario housing activity later this year and into 2011," said Ted Tsiakopoulos, CMHC's Ontario regional economist "This transition in housing activity should be orderly thanks to improving job markets, historically low interest rates and further gains in household incomes," added Tsiakopoulos.