Ottawa Housing Market to Remain Balanced

OTTAWA, ONTARIO--(Marketwired - Oct. 30, 2014) - According to Canada Mortgage and Housing Corporation's (CMHC) Housing Market Outlook, total housing starts will retreat slightly in 2015 and remain subdued in 2016 driven by a low number of condominium apartment starts. As employment conditions stabilize in the CMA and inventory of completed but unsold apartment units is gradually absorbed by the market, starts will climb up once more.

"Soft employment conditions will temper resale housing market activity keeping sales just below the 10-year average over the 2015-2016 period. The expected gradual rise in mortgage rates in late 2015 will also put downward pressure on demand for resale homes," said Sandra Pérez Torres, CMHC's Senior Market Analyst.

The resale market will remain in balanced market territory in 2015 and 2016 despite the moderation in sales. However, as listings continue to rise, market conditions will inch down to the cooler side of the balance market. As a result, price growth will be more modest over the forecast, rising at a rate just lower than inflation.

Although demand for rental accommodations will remain firm, the increased supply of secondary market units will push up the vacancy rate in the purpose-built rental market in 2015 and will remain above the 10 year average for 2016. Average rents will increase gradually by 1.8 and 0.9 per cent respectively for 2015 and 2016.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at CMHC Housing Market Information.

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