Local housing market cools in May
By Leo Valiquette, Ottawa Business Journal Staff
Mon, Jun 9, 2003 1:00 PM EST
Housing starts in Ottawa eased again last month as the market cools off to a more sustainable level from the record-setting activity of 2002.
Canada Mortgage and Housing Corp. reported on Monday that construction began on 500 new residential units in May. That's a drop of almost 28 per cent from April's total of 692. Compared to May 2002, it's a drop of 56 per cent.
On a monthly basis, housing starts have fallen in four of the past five months.
Aside from the general easing trend that has emerged in the first five months of 2003, CMHC's Christian Douchant said May was not expected to come near the level of activity seen a year ago.
May 2002 was boosted by the most starts of multiple units in 30 years thanks to a number of new condo and apartment developments. The total number of starts hit 1145.
Multiples include more affordable forms of housing such was rowhouses and condos, as well as rental apartments.
On the year-to-date, total housing starts are down by 34 per cent, to 2,237.
Even though the market is cooling off, Douchant said the total for the first five months of the year is still higher than CMHC's 10-year average for Ottawa.
By housing type, construction began on 237 new multiple units in May, a decline of 68 per cent from last year's record tally and 25.7 per cent from April's 319.
More expensive single-family homes also suffered a significant decline. At 263 the total was down 36 per cent from May 2002 and by almost 30 per cent from April's 373.
"The demand for new single-family homes has softened in recent months due to a growing number of new listings available in the resale market," Douchant said in Monday's report. "Consumers looking to buy a single-family home have more housing choices available to them."
The strongest urban area compared to a year ago was the former city of Nepean, with 129 starts last month compared to 134. The largely rural Rideau Township enjoyed an increase, from 13 to 15.
The weakest markets year-over-year were the old city of Ottawa, dropping from 443 starts to 83, and Kanata, falling from 255 to 48.
On the year-to-date Cumberland is the strongest market, with 502 starts compared to 387 in the first five months of 2002. Other markets that continue to improve on 2002 include Goulbourn, Gloucester, Osgoode and Rideau Township.
By Leo Valiquette, Ottawa Business Journal Staff
Mon, Jun 9, 2003 1:00 PM EST
Housing starts in Ottawa eased again last month as the market cools off to a more sustainable level from the record-setting activity of 2002.
Canada Mortgage and Housing Corp. reported on Monday that construction began on 500 new residential units in May. That's a drop of almost 28 per cent from April's total of 692. Compared to May 2002, it's a drop of 56 per cent.
On a monthly basis, housing starts have fallen in four of the past five months.
Aside from the general easing trend that has emerged in the first five months of 2003, CMHC's Christian Douchant said May was not expected to come near the level of activity seen a year ago.
May 2002 was boosted by the most starts of multiple units in 30 years thanks to a number of new condo and apartment developments. The total number of starts hit 1145.
Multiples include more affordable forms of housing such was rowhouses and condos, as well as rental apartments.
On the year-to-date, total housing starts are down by 34 per cent, to 2,237.
Even though the market is cooling off, Douchant said the total for the first five months of the year is still higher than CMHC's 10-year average for Ottawa.
By housing type, construction began on 237 new multiple units in May, a decline of 68 per cent from last year's record tally and 25.7 per cent from April's 319.
More expensive single-family homes also suffered a significant decline. At 263 the total was down 36 per cent from May 2002 and by almost 30 per cent from April's 373.
"The demand for new single-family homes has softened in recent months due to a growing number of new listings available in the resale market," Douchant said in Monday's report. "Consumers looking to buy a single-family home have more housing choices available to them."
The strongest urban area compared to a year ago was the former city of Nepean, with 129 starts last month compared to 134. The largely rural Rideau Township enjoyed an increase, from 13 to 15.
The weakest markets year-over-year were the old city of Ottawa, dropping from 443 starts to 83, and Kanata, falling from 255 to 48.
On the year-to-date Cumberland is the strongest market, with 502 starts compared to 387 in the first five months of 2002. Other markets that continue to improve on 2002 include Goulbourn, Gloucester, Osgoode and Rideau Township.
