Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2010 08:15 ET

Ottawa's Housing Market Will Moderate in 2011

OTTAWA, ONTARIO--(Marketwire - May 19, 2010) - 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 2010 edition. 

Highlights of the report include:

  • MLS® sales will grow reaching 15,850 transactions while average prices will increase by over 7 per cent by the end of 2010.
  • Growth in sales will be largely driven by early 2010 activity, as home sales cool later this year and into 2011 due to rising mortgage carrying costs.
  • After a slower level of construction activity in 2009, it is expected that housing starts will increase by 8 per cent this year before moderating into 2011.
  • Average weekly earnings will close this year 4 per cent higher than in 2009. This high level will support the Capital City's housing market.

"Although employment will continue its recovery path in 2011, higher home prices coupled with a slight increase in interest rates will result in a slowdown in the housing market," said Sandra Pérez Torres, CMHC's Senior Market Analyst. "Expect higher density dwellings to lead the growth in the next years as increasing prices for single-detached homes will give townhomes and semi-detached dwellings a competitive advantage," concluded Pérez Torres.

"Trends in the Ottawa CMA housing market generally mirror expectations for the rest of the province. Higher mortgage carrying costs, increasing supply pressures and declining first time buyer demand will temper Ontario housing activity later this year and into 2011," said Ted Tsiakopoulos, CMHC's Ontario regional economist "This transition in housing activity should be orderly thanks to improving job markets, historically low interest rates and further gains in household incomes," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of 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 vital decisions. For more information, visit www.cmhc.ca or call 1-800-668-2642.

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Contact Information

  • Ottawa (in English or French):
    Canada Mortgage and Housing Corporation
    Sandra Perez Torres
    Senior Market Analyst
    613-748-5120
    sperezto@cmhc.ca
    or
    Ontario:
    Canada Mortgage and Housing Corporation
    Ted Tsiakopoulos
    Regional Economist
    416-218-3407
    ttsiakop@cmhc.ca
    or
    Canada:
    Canada Mortgage and Housing Corporation
    Charles Sauriol
    Senior Media Relations Officer
    613-748-2799
    csauriol@cmhc.ca