Hamilton’s housing market will stay hot into 2014.

That’s the forecast from the Canadian Mortgage and Housing Corporation, the country’s national housing agency.

The CMHC says demand for existing homes will remain steady in the first half of next year, while construction of new homes will increase.

“The steady population increase from net migration has generated more households, which bodes well for the housing markets in Hamilton and Brantford,” Abdul Kargbo, the CMHC’s senior market analyst for the Hamilton and Brantford areas, said in a statement.

Kargbo's predictions come after the Hamilton area saw strong housing sales at the beginning of fall. September was another banner month for Hamilton’s housing market. A total of 1,207 were sold in Hamilton that month, one short of the record for September, set in 2009.

“Sales and listings for the month of September were both well above the 10-year average for the month,” Ross Godsoe, CEO for the Realtors Association of Hamilton-Burlington, said in early October.

House prices also rose in September over the previous year. The RAHB reports the average home price for September was $392,013, an increase of nearly seven per cent from September 2012.

However, housing starts in the city dipped in the same month, trending at about 400 fewer units than the month of August.

The trend, monitored by the Canada Mortgage and Housing Corporation, is a six-month moving average. There were 2,451 units in September compared to 2,827 in August.

The decrease “was entirely due to weaker construction of multiple-family housing,” such as apartments and semi-detached homes, in Hamilton, Kargbo, said in October.

“Meanwhile, total starts in the City of Burlington and the Town of Grimsby were up due to a higher level of townhouses.”

With files from Samantha Craggs