Kitchener Resale Home Sales to Reach All-time High in 2007

    KITCHENER, ON, Nov. 14 /CNW/ - Kitchener existing home sales will reach a
record high of 7,000 in 2007 and remain solid at 6,700 in 2008, according to
Erica McLerie, Canada Mortgage and Housing Corporation's (CMHC) Market Analyst
for the Kitchener Census Metropolitan Area (CMA). CMHC released its latest
forecast for the Kitchener CMA today at the annual CMHC Housing Outlook
    "Demand for housing in the Kitchener CMA will remain strong," said
McLerie. "The high cost of new single-detached homes will encourage homebuyers
to purchase either a new multiple-family home or an existing home. Price
conscious homebuyers will keep existing homes sales at a very strong level,"
added McLerie.

    Other highlights of the report include:

    -   Anticipated strong sellers' market conditions imply prices will be
        growing faster than inflation. The average price of an existing home
        will reach $262,000 in 2008.

    -   Rising new home prices, greater choice in the resale home market and
        less than robust labour markets will keep housing starts below the
        annual average recorded in the first half of the decade.

    -   Homes starts in the Kitchener CMA will reach 2,550 this year and
        2,650 in 2008. Multiple-family homes will continue to be a less
        expensive option to higher-priced single-detached homes. With more
        compact development on Greenfield land and infill housing encouraged,
        the focus of new construction will shift away from the
        single-detached home toward higher density forms of housing.

    -   Relatively more affordable existing home prices, a high level of new
        listings, higher but still historical low mortgage carrying costs
        through diverse home financing options, limited choice in the new
        home market and continued population growth will contribute to record
        existing home sales in 2007.

    In Ontario, there will be increasing demand for multi-family homes.
"Higher mortgage carrying costs and slower job growth in higher paying
employment sectors in 2008 across Ontario will shift demand towards the less
expensive multi-family home sector, which includes townhomes and apartments,"
said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "A tight resale
apartment market combined with a backlog of apartment sales that have yet to
commence construction, will further support activity in the multi-family home
sector," added Tsiakopoulos.

    As Canada's national housing agency, Canada Mortgage and Housing
Corporation (CMHC) draws on over 60 years of experience to help Canadians
access a variety of quality, environmentally sustainable, and affordable homes
- homes that will continue to create vibrant and healthy communities and
cities across the country. For more information, visit or call  

For further information:

For further information: Media inquiries: Erica McLerie, Market Analyst,
Kitchener CMA, Canada Mortgage and Housing Corporation, (416) 218-3318;
Angelina Ritacco, Communications and Marketing Consultant, Canada Mortgage and
Housing Corporation, (416) 218-3332

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