New Home Outlook for 2011

In 2010, the Ottawa new home/condo market had a slight resurgence predicted to close the year at nearly 5,900 units, with the condo market owning a 24% share of the new construction in the City of Ottawa. Which is a significant increase compared to last year, where the condo market only had 19% share of the new homes division.

With the trends in Ottawa starting to lean towards multiple unit structures, we can expect town homes and condos to earn an even bigger market share of the new homes development in 2011. According to CMHC, the strong activity in the re-sale market in Q1 and Q2 of 2010, increasing mortgages rates projected for 2011 and along with higher housing prices, the demand for single-detached homes will be reduced for 2011. CMHC predicts that single construction will continue to fade in the next several years to the point where singles will only represent 4 out of every 10 homes in Ottawa.

With the average home increasing in value of approximately 6.27% a year, many potential buyers are looking for more affordable housing, leading them directly to the condominium market. Also increasing the demand for condo are the growing number of empty nesters who are slowly but surely making the shift from the large single to the care-free condo as well as young urban professionals who are looking for housing to be within proximity of all the happening things that Ottawa has to offer.

According to the City of Ottawa Official Plan, the main objective is to ‘‘grow in, not out’’. Thus utilizing existing infrastructure to develop higher-density residential housing units. Meaning developers will continue to use infill projects to conform to the Official Plan. CMHC predicts that the downtown core will continue to outpace other regions in the city since it can support high density developments. Which will in fact help to attract urban professionals with high incomes.

These days buyers are looking for housing to compliment there lifestyle that are in proximity of cultural amenities, restaurants, shops and public transportation, and these buyers are no longer buying simply based on square footage. To learn more about the Ottawa condo market, please contact the Bennett Real Estate Professionals today!