The Canada Mortgage and Housing Corporation (CMHC) says Ottawa’s housing market will remain balance in its Spring Housing Market Outlook report for Ottawa CMA.
CMHC says housing starts will decrease from 5,762 units in 2014 to 5,010 units in 2015, as condominium apartment starts retreat from record highs. The inventory of completed and unsold condominium apartments will gradually decrease this year, causing starts to edge up in 2016.
MLS® sales are expected to remain flat over the 2015-2016 forecast period.
Balanced market conditions will prevail despite flat sales and rising listings in 2015. Listings will edge higher in 2016. As a result, the average price of a resale home is expected to rise modestly.
An increase in the supply of secondary rental market units will provide more options for renters this year. Greater choice and stable rental demand will cause the vacancy rate to increase slightly in 2015. Better economic conditions in 2016 will generate greater rental demand in the capital city, causing the vacancy rate to decrease.
“Housing demand will remain steady in Ottawa in 2015 despite soft job growth, due to low mortgage rates and prices that are affordable for the average household,” said CMHC market analyst Anne-Marie Shaker. “Modest price growth and slightly higher mortgage rates in 2016 will have a modest impact on affordability and homeownership demand.”