Mortgage Market in Windsor
Windsor is a unique, diverse and quickly stabilizing market in southern Ontario. It anchors the southern tip of Ontario’s population and industrial corridor that stretches 1,150-kilometers to Quebec City. This corridor houses and supports over fifty per cent of the Canadian population. Here we will look at the Summer 2016 Windsor housing and mortgage markets in context of the area growth, and will also review how Windsor Mortgage Brokers are looking at the state of lending here.
A changing demographic
In addition to its Ford-centered manufacturing facilities, Windsor is home to Hiram Walker distilleries, the University of Windsor, the Medical School of the University of Western Ontario, and Caesar’s Windsor hotel and casino. But, it is building employment opportunities in pharmaceuticals, software, alternative energy, and tourism.
The CMHC reports expected growth in jobs consistent with a wider North American economic recovery. For instance, as auto sales improved, the Windsor labour market naturally sought a balance that has led to a 1.3 per cent increase in jobs. Perhaps more important, that growth has occurred in diversified employment sectors, including the construction of the Gordie Howe International Bridge. This will play a significant role in Windsor’s housing market stability going forward.
Overall, the 162,000 job holders predicted for 2017 are pushing employment statistics closer to the 2005 high point.
As real as the increases may be, the trajectory is slight and will coincide with modest increases in home mortgage interest rates. The Bank of Canada forecasts increases for a base range of 4.4 to 5.0 per cent will move towards 4.7 to 5.3 per cent in 2017. These are posted, non-discounted rates. Rates offered by Mortgage Brokers are almost always discounted.
The expected change in interest rates frames other changes in the Windsor demographics. For example, increasing immigration fills lower paid jobs, and an aging population moves toward downsizing.
Finding a balance
CMHC predicts 910 housing starts in 2016 and the same for 2017. However, relatively few will be single detached houses. Most starts will be townhome or semi-detached units. And, reflecting the demographics and need for new families to find starter homes, most of the new housing will be offered at prices well below $300,000. And, while the sale of existing stock is expected to outperform new listings, the seller’s market will continue. Sales volume remains high and this trend should continue. And, likewise this should encourage more residents to list their houses for sale.
Windsor mortgage brokers
Throughout the years, Windsor mortgage brokers have helped customers find the best deal for mortgages, second mortgages, home equity lines, and mortgage refinancing. No one wants to pay more than they need to for mortgage interest costs. Independent mortgage experts enjoy helping customers seize opportunity and solve financial problems. They help to make housing dreams happen and put Windsor residence into mortgage products that best serve their needs.