CMHC Hamilton and Brantford Winter 2009 Housing and Economy Outlook

‘Housing prices and sales in Hamilton and Brantford will remain steady in early 2009’, is the indication given by the Canada Mortgage and Housing Corporation’s latest area review. Due to a growing population and emerging job sectors, housing in the Hamilton area has preformed relatively well. Although more housing choice in the resale home markets will result in less housing starts in 2009, housing prices are expected to grow overall. The summary of this review will be broken down into New Home Sales, Resale Home Market, The Local Economy and Job Market, and Finally Mortgage Rates in the Hamiltonand Brantford area.

New Home Sales

New home starts will decline slightly in 2009 to 3,045 starts in Hamilton, slightly above the total witnessed in 2007. Housing prices for new homes will continue to increase, however, due in part to the rising costs of development. Demographic trends will move new housing purchases away from single detached homes, towards condos and attached homes. The empty-nester baby boom generation will be accounting for much of this trend. Specifically, these types of purchases will move from just under ¼ of all new home sales, to just over 1/3.

In Brantford, total home starts will increase by 2% going in to 2009, and the average price of a single detached home will reach a price of $252,000 by the end of the year.

Resale Home Market

Although the economic environment will be moderating in Hamilton and the broader Ontarioeconomy in 2009, the resale market continues to perform relatively well. Resale home sales have decreased 7.7% from the same period last year, but the average resale selling price is expected to reach $280,000  - an increase of 4% compared to the year before. It is useful to note that 2007 was a record high for home sales in Hamilton, and that other years will seem lower in comparison. Home sales remain healthy.

 

Throughout 2009, the resale market will be quite balanced in Hamilton

and housing price growth will come in around 3%, just above the rate of inflation.  Importantly though, this more moderate growth in housing prices will help increase demand in the future. In Brantford, housing prices will increase by 2.8% in 2009 and reach an average selling price of $224,000. More moderate housing prices in Brantford will attract some home buyers from the Hamilton area, but slowing employment growth in ’09 will place downward pressure on sales.

The Local Economy and Job Market

Today, the manufacturing sector in Hamilton represents only 14% of all jobs. Even with a continuing moderation of the manufacturing job sector, Hamilton’s total employment remains at a record high. Moreover, full time employment, which is a major factor in supporting the growth in housing prices and purchasing, remains at a strong high. The current unemployment rate at the end of 2008 is 6.5%.

On a very positive note, the targeted growth industries, including health sciences, bio technology and advanced manufacturing will continue to support job creation and long term local economic stimulation. The City of Hamilton Ontario is working diligently to secure innovation based corporate and education investment to ensure it competes well in the emerging, knowledge based global economy. Total employment is expected to increase by less than 1% in 2009.

In Brantford, incentive programs that are attracting new business to the area is supporting modest employment growth. Moreover, long term provincial plans to intensify cities surrounding the Golden Horse Shoe area will very likely maintain consistent population and employment growth in Brantford. Like Hamilton, employment rates are expected to increase by less than 1% in Brantford in 2009.

Mortgage Rates in Hamilton and Brantford

Mortgage rates are expected to decrease going into 2009 to very low levels. Rates are expected to increase towards the end of 2009 however due to a surplus of 5 Year Government bonds and a resulting increase in bond yields. This increase in Government bond yields is a result of massive stimulus and bail out packages that governments will need to raise capital for. Those who can lock in at 5 year fixed mortgage rates in Hamilton and Brantford at all time low rates will fare very well over the course of the term, especially given preferred home prices in a buyers housing market. Given a long term focus on high growth industry areas, the economy looks strong in the Hamilton and Brantford area going forward.

Contact me Brent Richardson, for any questions, comments or specifics about this article summary. Feel free to leave a post below as well! 

Comments

[Cheap Louis Vuitton]

I just can"t let you walk away

Forget the love I had for you.

[air max shoes]

The action was intense and reminecent of my trip the year before. The key to this fishery is finding the fish but once you do the action can be incredible. *-*

[air max shoes]

The action was intense and reminecent of my trip the year before. The key to this fishery is finding the fish but once you do the action can be incredible. *-*

[coach coupon outlet]

One thing that confuses me about this video and related comments is the suggestion that the audience is 'pre-empting' the pentatonic scale. While they certainly do pre-empt the major third, which is fascinating in itself (and i suspect there are myriad theories as to why this happens, both cultural and physical), all other notes in the pentatonic scale are introduced by Bobby first, before the audience sings them. Therefore, the audience is merely replicating the notes on demand, and in different octave registers, so I fail to see how this demonstration shows the "deep connection between the pentatonic scale and the human brain"