Ottawa housing market to cool in 2022 but prices will rise: CMHC
Ottawa's hot real estate market is expected to cool down this year due to rising interest rates, but prices will likely continue to rise.
Canada Mortgage and Housing Corporation says although supply constraints could limit the number of home sales in the capital this year, the market will remain "tight enough" to drive up prices for homes.
"The Ottawa market should move away from overheating as a result of the decrease in sales and an increase in listings," CMHC said. "Nevertheless, the market should remain tight enough to maintain some upward pressure on prices."
The CMHC says higher mortgage rates will continue to slow demand this year and next, but sales will remain high form a historical standpoint.
The corporation’s Housing Market Outlook predicts between 18,700 and 20,500 homes will be sold in Ottawa this year, down from 20,625 in 2021. The average price of homes sold will range from $720,000 to $750,000.
"Demand for existing homes should remain strong, but supply constraints could limit the number of sales," CMHC says. "In the second half of the year, rising mortgage rates and declining employment may also lead to reduced sales. Overall, sales should decrease in 2022."
Canada Mortgage and Housing Corp. says an end to pandemic-related restrictions and a return to pre-pandemic life would reduce the ability of households to finance home purchases and lower housing demand.
"This would then position sales at the lower end of our forecast, which is 18,700 homes sold.”
Canada Mortgage and Housing says the average price of a home sold in Ottawa could hit $750,000 in 2022, up from $648,099 in 2021.
Although housing inventory remains historically low in Ottawa, the CMHC expects housing starts to decrease slightly this year before rising in 2023 and 2024.
“The decrease expected this year is a short-term phenomenon amplified by the limited availability of resources in the construction sector.”
Ottawa Real Estate Board said last month that Ottawa’s real estate market had about two weeks’ worth of housing inventory. A balanced market has four months of inventory.
GATINEAU
Canada Mortgage and Housing Corp. says rising mortgage rates, limited supply and slower employment growth will slow the resale market in Gatineau, Que. this year.
However, with supply at a historic low, "sellers market conditions will likely persist through 2022."
"This will keep upward pressure on the average price," CMHC said. "Forecasted growth will be high compared to the area's historical increases, but will remain below 2020 and 2021 levels."
CMHC estimates between 5,300 and 6,100 homes will be sold in Gatineau this year, down from 6,033 in 2021. The average price for a home will be $452,000 to $488,000.
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.