Housing demand drops in Kitchener, Guelph
Posted May 30, 2011 03:17:36 PM.
This article is more than 5 years old.
Demand for both new and resale homes will decrease for the remainder of this year throughout the Kitchener-Cambridge-Waterloo and Guelph Census Metropolitan Areas.
That information is contained in the Spring Housing Market Outlook report from the Canada Mortgage and Housing Corporation.
Among the findings in the report, sales will moderate through the remainder of 2011 and pick up into 2012, new home construction will fall back from the stronger level in 2010 and will gain strength later in 2011 and higher employment and population growth will support housing demand by 2012.
“Demand has not slipped that significantly and new listings are still fairly high but it has not fallen back into a buyer’s market at all,” notes Erica McLerie, senior market analyst with CMHC.
She points to strong demand early in 2010 when buyers were getting into the housing market thanks to low interest rates brought on by the recession, a concern that those rates would rise and in a bid to beat the HST. McLerie says it would have been near impossible to keep that pace to start 2011.
Locally, McLerie says single-detached homes are the most sought after purchases but she has also noted an increase in demand for condominium apartments.
Overall, she still sees a robust housing market.
“The housing markets will be more stable in 2011, and with an improving economy, demand will pick up later in 2011 and into 2012,” McLerie says. “Higher mortgage rates by late 2011 will cause some first-time buyers to postpone their home purchase, but stronger labour market conditions and increased in-migration will more than offset the drag on sales from fewer first-time buyers.”
Resale home price growth is also expected to moderate in 2011.
