KITCHENER, ONTARIO — (Marketwire) — 03/01/13 — The housing market in Kitchener-Waterloo-Cambridge appears firmly balanced with reasonable affordability, according to a new commentary released today by BMO Capital Markets Economics.
The commentary forms part of a larger report on the region, the first in a series of economic, housing and business overviews for various cities and regions across Canada that will be published by BMO throughout the year.
“The region-s sales-to-new listings ratio – a good proxy of market balance – has started 2013 in balanced territory, almost right in-line with the long-run average,” said Robert Kavcic, Senior Economist, BMO Capital Markets. “This compares to the very strong sellers- market seen during the early 2000s, and is much healthier than the extreme buyers- market of the early 1990s.”
“There is a significant demand for residential housing, both in condominiums and single detached-homes,” said Janet Peddigrew, District Vice-President, Mid Western Ontario, BMO Bank of Montreal. “The diversified regional economy continues to perform relatively well, and our community will benefit from the long-term construction of the $818 million LRT connecting Cambridge, Kitchener and Waterloo.”
“Income gains and a significant decline in mortgage rates have left Canadian housing affordability at a historically-normal level, and homes in Kitchener-Waterloo-Cambridge remain cheaper relative to income compared to those in Toronto,” said Mr. Kavcic. “Affordability should remain reasonable in the region thanks to price growth curbing closer to income growth.”
Real Estate
Home Building
The full report is available upon request.
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Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at January 31, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
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