For Immediate Release:
Wednesday, December 9, 2015
Kitchener, ON – The most wide-reaching provincial economic forecast of the year, the Ontario Economic Update 2016, was released today by the Ontario Chamber of Commerce and the Credit Unions of Ontario, with support from the Greater Kitchener Waterloo Chamber of Commerce. The housing market in the Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA) is forecast to be among the hottest in the province.
The report finds that Multiple Listings Service (MLS®) residential sales are projected to increase by 6.7 percent in 2016 and 5.2 percent in 2017, a growth rate above the provincial average.
Looking to the future, the Kitchener-Cambridge-Waterloo housing market will help drive economic growth as employment is projected to grow by 1.1 percent a year through 2017. Housing prices in the CMA will continue to rise quickly, The average MLS® residential sale price is forecast to rise 5.0 percent in 2016 and 4.7 percent in 2017, following an estimated gain of less than three percent in 2015. The average price of a house will rise to $375,000 by 2017.
According to province wide data, most areas of Ontario will enjoy improving economic conditions in the coming year. Growth will be driven in part by an increase in exports, the result of a stronger U.S. economy and a low Canadian dollar. Government fiscal policy will also be a key driver, as federal and provincial infrastructure commitments will stimulate growth across a variety of sectors.
Ian McLean, President & CEO of the Greater Kitchener Waterloo Chamber of Commerce: “Our region’s highly diverse and innovative economy has positioned us for sustained economic and population growth. The strong housing market indicates people are moving here for jobs and emerging opportunities.”
Allan O’Dette, President & CEO of Ontario Chamber of Commerce: “Ontario businesses are helping Ontario emerge stronger from the downturn. However, our economy still faces significant challenges. In order to generate sustained economic growth, government must invest in infrastructure, close the skills gap, and ensure that input costs do not stifle investment or job creation.”
Helmut Pastrick, Chief Economist, Central 1 Credit Union: “Ontario and its regional economies will grow at a moderate but faster pace through 2017 aided by favourable external factors such as the low dollar and interest rates and an improving U.S. economy. Most regions will participate and contribute to Ontario’s improved economic prospects though differences exist among regions. Resource-based regions will be weighed down by poor metal markets.”
Key Facts and Highlights:
For further information contact:
President & CEO
Greater Kitchener Waterloo Chamber of Commerce