Consistent with Demographic Fundamentals

Canada Mortgage and Housing Corporation  (CMHC) is forecasting the number of new homes constructed in Ottawa will fall to the lowest level since 2005.  CMHC also says there is a significant trend behind the numbers.

"Demand for the popular condominium apartment segment will continue to rise," says CMHC's housing outlook report. "While semis and row (houses) will combine to dethrone the single-detached homes segment as the new dominant low-rise dwelling types in Ottawa for the first time in over 15 years."

Due to the low mortgage rates and modest prices, CMHC predicts that sales will continue to be moderate. CMHC expects average resale prices to increase by five per cent this year and match the general rate of inflation in 2012.

Read More Here: http://www.obj.ca/Real-Estate/Residential/2011-11-04/article-2796468/Housing-starts-to-drop-to-seven-year-low%3A-CMHC/1