Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 30, 2011 08:15 ET

Ottawa's Housing Market Set to Moderate in 2011

OTTAWA, ONTARIO--(Marketwire - May 30, 2011) - Canada Mortgage and Housing Corporation (CMHC) released its latest forecast for the Ottawa Census Metropolitan Area (CMA) today in the Ottawa Housing Market Outlook, spring 2011 edition.

Highlights of the report include:

  • MLS® sales in the Ottawa CMA will moderate, as the region will post a 5.7 per cent 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 townhome segment.

"Current demographic trends will continue to put first-time homebuyers and downsizing empty-nesters at the forefront of Ottawa's housing market activity, thus raising the popularity of more affordable housing types such as condominium apartments, townhouses and semi-detached homes," said Sandra Pérez Torres, CMHC's Senior Market Analyst. "Ottawa's housing market remains comparatively affordable and income growth will be a solid stabilizing factor as the local economy continues to grow," concluded Pérez Torres.

"Consumer buying patterns, particularly in more expensive southern Ontario markets, will increasingly shift to less expensive housing over the next few years thanks to tighter mortgage market conditions. This bodes well for the apartment ownership and rental sector," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Northern Ontario housing markets are an exception as strong activity in the mining sector and relatively more affordable housing will support growing demand for low density housing," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. 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.

For housing forecasts that will inform your business strategy in 2011, attend your local housing market outlook session this November. Visit www.cmhc.ca/conferenceregistrationfor complete details.

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Contact Information

  • Canada Mortgage and Housing Corporation
    Ottawa (in English or French):
    Daniel Benatuil
    Market Analyst
    613-748-5121
    dbenatui@cmhc.ca

    Canada Mortgage and Housing Corporation
    Ontario:
    Ted Tsiakopoulos
    Regional Economist
    416-218-3407
    ttsiakop@cmhc.ca

    Canada Mortgage and Housing Corporation
    Canada:
    Charles Sauriol
    Senior Media Relations Officer
    (613) 748-2799
    csauriol@cmhc.ca