Day: July 4, 2009

Uncategorized

New Home Market Report – Part 1

CMHC Housing Market Report for Ottawa

 Original Source: http://www.cmhc-schl.gc.ca/odpub/esub/64311/64311_2009_B01.pdf

  • New Home Construction to Slow Down Toward Demographic Needs

Its nice to see some normal economic theory coming into play:

The Residential construction industry in Ottawa will remain in good health and will therefore exhibit a normal cyclical downward adjustment. This will bring the pace of new starts during 2009 and 2010 to more moderate and sustainable levels, consitent with both economic fundamentals and demographic needs.

Figure1

 

 

 

 

 

 

 

 

 

  • Single-Detached Starts will Adjust the Most

Single detached starts will go down 28.1% from 2008 levels for a variety of reasons including increased caution among first time home buyers, a negative wealth effect caused by equity losses among baby-boomers, and reduced affordability for more expensive dwellings.

  • Suburban Townhomes will Remain Popular Among First-Time Buyers

I knew this! This top selling home type that I have been dealing with is Suburban Townhomes. Townhome construction will rebound at the fastest pace among all property types due to the appeal of suburban lifestyle and recent improvements in homeownership affordability.

  • Urban Apartment Construction will Lead the Way in 2009

Very Interesting!!!  This section says that due to economic conditions and changing demographics, this section will see a ‘buoyant’ demand , especially for condominium units closer to Ottawa’s core that is expected to remain well above historical averages.

 

Next: The RESALE market