Ontario/Canada Housing in 2014

Yes, it’s time again, to start planning for the next year in real estate in Ottawa (and of course, planning for Christmas :)).  Here’s a look at what’s on the horizon for housing in Ontario, and Canada, over the next year.  All information from Canada Mortgage and Housing Corporation’s housing market outlook.

– Housing starts to remain stable and resales to increase modestly in 2014.

– Existing homes sales are expected to stay relatively unchanged in 2013 and then rise in the first half of 2014 before moderating in the second half of 2014.

– the average MLS price is anticipated to grow 4.0% in 2013, reflecting in part, increased sales in higher-priced markets.

– In 2014, house prices are expected to grow in line with inflation at 1.9%.

– The average MLS price is forecast to rise to $378,000 in 2013, and then to $385,200 in 2014.

– Relatively less expensive existing homes will regain some sales momentum versus new homes heading into 2014.

– Improving job prospects will support housing demand in short term however rising mortgage carrying costs will dampen demand by the second half of 2014.

– After growing to over 76,700 unit starts in 2012, Ontario starts will slow and reach 60,800 units in 2013, before stabilizing in 2014.

– Higher density housing, particularly, semi and row construction, will help offset some slowing in apartment construction over the forecast horizon.

– Owing to economic uncertainty, starts will range between 54,000 to 66,600 by 2014.

– Larger southern Ontario housing markets will grow at more modest pace due to high home prices, high apartment inventories and less investor demand.

– Detached construction will remain relatively stable thanks to improving income growth, lower unsold inventories and relatively tighter detached resale market conditions.

– Mortgage rates are expected to increase gradually and steadily over the forecast horizon.

– According CMHC’s base case scenario for 2013, the average for the one-year posted mortgage rate is forecast to be within 3.00% to 3.50%.  For 2014, the average for the one-year posted mortgage rate is expected to rise and be in the 3.25% to 3.75%.

As you are probably aware, real estate is intensely local, and these stats are Ontario and Canada-wide.  For more detailed information in certain areas, contact me and we can go through more specific data.  For anyone looking for real estate in Ottawa, I’m very happy to help.

Once again, please do not hesitate to contact me for anything real estate related.  For all your Realtor needs.

Now get outside and enjoy this beautiful day before its REALLY cold