Here are some vital stats on the area:

• Population: 489,100 includes Cambridge (Stats Canada 2009)
• Job market expected to slowly repair
• Employment to increase 1% in 2010
• Wages to increase 2% in 2010 and an additional 2% in 2011
• Net migration to reach 3,500 in 2010

Statscan 2009 Census

Kitchener Waterloo (KW) Mortgage Rates will slowly increase in 2010

The CMHC best case scenario, expect mortgage rates will continue to slowly increase in 2010 with a one year mortgage rate to be in the 3.6 to 4.8% range and the three and five year mortgage rates to be in the 4.2 to 6.7% range. In 2011, CMHC forecasts that the one year mortgage rate will be in the range of 5.0 to 6.0% whereas, the three and five year mortgage rate will be in the range of 5.6 to 7.2%. However, if the economy recovers at a faster rate than expected, mortgage rates may increase at a more rapid rate.

Kitchener Waterloo Housing Market Forecast

The CMHC believes that existing home sales will remain at strong levels throughout the Kitchener Waterloo area in 2010, but will moderate in 2011. Sales through the Kitchener-Waterloo Real Estate Board will increase 9% in 2010. A higher number of resale homes will be present in 2010. This trend will remain in 2011, even though prices growth will decelerate. Single starts will increase in 2010 as a result of a better economy, low mortgage rates, and low inventory costs. However, 2011 will see a decline due to higher mortgage rates, a decline in first time buyers and more choice in the resale market. Prices for new homes will increase to $372,000 in 2010 indicating a 2% increase.

CMHC Kitchener Waterloo area housing market & Kitchener Waterloo area mortgage rate forecast