According to a report released on Monday by Canada Mortgage and Housing Corporation (CMHC), total housing starts within the Kingston Census Metropolitan Area (CMA) are expected to see a strong rebound in 2015 to 810 units.
The CMHC’s Spring Housing Market Outlook indicates that higher apartment starts – which is expected to reach a similar level to 2013 – will be the primarily factor in causing total starts to increase this year.
Although apartment starts are expected to decline from this year’s high level for 2016, row home starts are predicted to remain strong in both 2015 and 2016 due to greater demand from first-time home buyers.
CMHC predicts that the number of existing homes sold in 2015 will increase slightly to 3,000, with a “modest adjustment” expected in 2016. The average price of a resale home is expected to increase by 1.0 per cent each year over the forecast period.
“Positive economic conditions will support housing demand in 2015. An improving labour market, higher average weekly earnings and stable low mortgage rates are all factors contributing to a stable outlook for this year. As prices continue to rise and mortgage rates edge higher in early 2016, affordability will become an issue for first time buyers,” said Market Analyst, Aris Gianneskis, in a CMHC release.
For more information about CMHC’s Spring Housing Market Outlook report, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at CMHC Housing Market Information.