The Canada Mortgage and Housing Corporation (CMHC) held the annual Waterloo Region Housing Outlook Seminar Thursday November 22nd at Bingemans in Kitchener. The seminar examined where the local housing market is heading and discussed the challenges to be encountered in 2013.
The highlights of the seminar were:
- Housing demand will increase in 2013 as the local economy and the overall economy will pick up
- Resale housing sales will improve in the second half of 2013
- Resale prices will remain relatively flat through 2013 as the market continues to balance supply and demand
- Housing starts will move up from the end of 2012
- Low mortgage rates and household growth will support demand
I would add:
- Mortgage rates will continue to remain low with only slight increases overall
- Consumer debt will continue to be a concern as Canadian debt loads continue to increase at an alarming rate
- Resale housing sales will increase as mortgages, which were registered when mortgage rates declined rapidly in 2008, will mature in 2013
- First time home buyers will continue to spark sales of houses and condos with a purchase price of less than $300,000.00, however, less first time home buyers will enter the market due to tightened mortgage lending rules.
- Multi person housing, such as duplex, condos and houses with an in-law suite or two master bedrooms will increase as baby boomers move into households with their adult children.