Ottawa Housing Market to Soften in 2015

OTTAWA, ONTARIO--(Marketwired - Nov. 13, 2014) - The Ottawa existing home market will remain balanced in 2015 with price growth and slowing sales, according to Sandra Pérez Torres, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Ottawa. CMHC presented its latest forecast for the Ottawa Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Conference.

At this year's conference, entitled 'What Will Drive the Market?', CMHC market analysts explained how demographic trends will impact the housing industry in Ottawa and provided an in-depth housing market forecast for 2015.

"While balanced market conditions will prevail in Ottawa next year, some dwelling types will stay in the cooler side of the spectrum," said Sandra Pérez Torres. "Housing starts will moderate in 2015 driven by a decline in apartments. However, in the long run, demographic conditions and affordability will favour smaller dwellings."

Highlights from today's conference include:

• Existing home sales will slow, driven by a decline in condominium sales and increasing interest rates.
• Existing home market to cool in 2015 to 2016.
• Starts will increase by 2016 supported by demographic growth and shift towards more affordable dwellings.
• High inventory of condominium apartments is constraining apartment price growth.
• Vacancy rates to move down in 2016 after healthy rental market demand.
• Continued employment growth in the Capital will support the housing market

"Growing economic momentum will support stronger activity in Ontario's housing market in 2015. However, as mortgage carrying costs continue to grow, due largely to rising home prices, demand will increasingly shift to more affordable housing by 2016," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Resale markets surrounding the Greater Toronto Area, higher density dwellings and rental over ownership tenure will benefit most from the continued shift in buying patterns," added Tsiakopoulos.

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.

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