Market at a Glance
Market at a Glance
- MLS sales in the Ottawa CMA will moderate, as the region will post a 5.7 percent decline, while average prices will grow at a slower rate through 2011.
- Home sales and prices will firm later this year into 2012 as improving job creation and migration support housing demand.
- Although new housing starts will experience a slight drop, multiple-family homes will continue to occupy a larger percentage of the new home market due to rising mortgage carrying costs.
- Condominiums will increase in popularity,both in the apartment high-rise and low-rise town home segment.
Balanced Conditions Expected
to Remain in Ottawa Housing Market The Ottawa CMA transitioned from a seller?s market to a balanced market in 2010 and will remain in that territory in 2011. This will be a result of stable new listings, while existing home sales move lower. Consequently, the region will likely sit at the higher end of a balanced market, as sales regain strength moving into 2012. The average MLS price will rise slightly higher than the rate of Inflation. In 2012, a further 2.9 per cent increase is expected.
Less Expensive Homes to Remain Popular
The last two years have seen an increase in prices that can be partially attributed to growing demand for more modestly priced housing, which included apartments, town homes and semi-detached dwellings. Moving forward, new mortgage rule changes and rising mortgage carrying costs will continue encouraging a demand shift
to less expensive housing.
New Home Market
Moderation in New Residential Construction After an extraordinary year in 2010, the expectation for the new home market is a slight drop across most housing segments in 2011 before stabilizing in 2012. Nevertheless, new home starts are projected to post numbers consistent with household formation. With apartments and single-family homes witnessing a decrease, other housing types, including semi-detached and town homes, will see an increase in starts activity in 2011. Single-family starts will continue to moderate with the market being driven by more affordable types of homes. Nevertheless, apartment starts will moderate slightly after posting the highest level in over 20 years. Ottawa?s new home market stability is due primarily to builders who are cautious and do not typically build on speculation. This will therefore translate into lower inventories of completed and unoccupied homes moving forward. An improvement in overall employment conditions, spillover demand from the resale market, and declining inventories in the latter part of 2011, will enhance residential construction in 2012.