Windsor Mortgage and Housing Report Winter 2016
The Windsor Mortgage and Housing report is brought to you by Altrua Mortgage Brokers Windsor, and is based on reliable information from the Windsor Real Estate Board and the Canadian Mortgage and Housing Corporation. According to Windsor Realtors, home prices in Windsor grew an impressive 15.7% in 2016 – an increase in value only surpassed by growth in Toronto over the same period. Housing prices are projected to grow in 2017, however at a slower in pace. The following research and information from the Canadian Mortgage and Housing Corporation support these findings on the Windsor housing market.
New and existing home sales are expected to remain stable, if not decline slightly in 2017. In 2016 Windsor saw 300 single detached new construction starts, mainly in the township of Lakeshore where prices often surpass the $400,000 mark. This was the first time since 2006 that Windsor has experienced this kind of housing growth. Construction of new detached homes will slow slightly in 2017, from a projected 1,400 in 2016 to a range of 1,100 and 1,400 in 2017. Migration to Windsor from other areas of Ontario, particularly Toronto accounts for some of the continued support in new construction starts.
Although sales activity will fall slightly, the growth in home prices is expected to rise in the 5% range in 2017 and 2018.
Rental Vacancy rates will lower. Vacancy rates in Windsor are expected to decline from 3.5% in 2016 to 3.3% in 2017. Vacancy rates are forecast to remain at 3.3% in 2018. The reason for this is a trend of new Canadians immigrants and higher migration from other parts of Ontario. Those who are new to the community will tend to rent in their first few years. This helps to build a good pipeline supply for future purchases in the area, especially as vacancy rates lower and rents increase slightly relative to mortgage and housing carrying costs. More Windsor locals will be opting to purchase, however Windsor real estate investors will continue to enjoy a healthy supply of renters.
Population and Job growth in Windsor will remain stable in 2017 and 2018. Specifically, 165,000 people in the area are expected to be full time employed in 2017 compared to 163,000 people in 2016. Windsor experienced its first mass hiring in years with the expansion of the Chrysler-Fiat plan in 2016 and this led to some excellent full time employment stability in the area. A relatively low loonie and strong US demand should also continue to provide strength to Windsor’s export oriented economy. As the Gordie Howe International Bridge construction ramps up into 2017 and 2018, Windsor will see a healthy economic influx during this mass construction period. Altrua, along with many Windsor locals forecast that the Gordie Howe Bridge will continue to provide substantial economic support to the area over the long term.
Mortgage Brokers Windsor will continue to provide affordable financing options. Although mortgage rates are expected to increase slightly over 2017, they are expected to remain near all-time lows. As mortgage brokers in Windsor are able to provide wholesale discounts off of interest rates that a Bank will provide, Windsor home shoppers and real estate investors will continue to benefit from good long term growth in the area coupled with affordable mortgage options and strategies.
Connect with your Altrua Windsor Mortgage Broker today for mortgage rate quotes and more information.