From http://www.ottawabusinessjournal.com/282571789489935.php
Local housing market off to mixed start
By Leo Valiquette, Ottawa Business Journal Staff
Tue, Feb 8, 2005 10:00 AM EST
Ottawa's housing market began 2005 with a mixed showing, as housing starts fell but the resale market held its ground following a string of declines in the latter half of 2004.
Canada Mortgage and Housing Corp. reported Tuesday that construction began on 395 new housing units in January. That was a decline of 21 per cent from December's 501 and of 10.4 per cent from the 441 starts recorded in January 2004.
Despite the weak start, Christian Douchant, CMHC's senior market analyst for Ottawa, remains optimistic.
"Though we started the new year down compared to last year, construction levels are well above the 10-year January average for Ottawa, which is 242 units," he said in the report.
"Though we are forecasting less construction activity this year, demand for homes is still firm and we can anticipate construction levels to remain at above-average levels in Ottawa."
As local housing demand eases to a more sustainable level of activity after more than three years of hyper growth, it is typically the higher end of the market that first feels the pinch.
That trend was evident in January's figures, with cheaper forms of housing enjoying a modest gain, while starts on costlier single-family homes down significantly.
Starts of multiple-type dwelling units, which include more affordable housing types such as condos and rowhousing, hit 310 in January. That was an increase of three per cent from a year ago and of about 8.4 per cent from December.
"While we saw an 18-per-cent decline in row (townhouse) construction in January, this was more than offset by a doubling in the number of semi-detached starts and seven-per-cent increase in apartment construction," Mr. Douchant said, adding that multiples will continue to make up a large number of the starts in 2005 "due primarily to the affordability that these units offer."
Singles starts, however, fell by 39 per cent from a year ago and by 60 per cent from December, to 85. That was the lowest one-month total in eight years.
"Rising listings in the resale market means consumers will be also afforded more choice than ever as the price gap between new and resale homes may influence potential homebuyers to look at the resale market first," Mr. Douchant said.
RESALES HOLD THEIR GROUND
On that note, the Ottawa Real Estate Board reported separately that the region's resale market held its ground in the first month of 2005.
The number of residential resales through the Multiple Listing Service totalled 637 in January, compared with 634 in December and 644 a year ago.
"The overall numbers as reported by our board for the month of January 2005 are very encouraging," board president Jeff Greenberg said in the report. "Our supply of homes ... continues to increase offering buyers a reasonable number of homes to chose from."
Local housing market off to mixed start
By Leo Valiquette, Ottawa Business Journal Staff
Tue, Feb 8, 2005 10:00 AM EST
Ottawa's housing market began 2005 with a mixed showing, as housing starts fell but the resale market held its ground following a string of declines in the latter half of 2004.
Canada Mortgage and Housing Corp. reported Tuesday that construction began on 395 new housing units in January. That was a decline of 21 per cent from December's 501 and of 10.4 per cent from the 441 starts recorded in January 2004.
Despite the weak start, Christian Douchant, CMHC's senior market analyst for Ottawa, remains optimistic.
"Though we started the new year down compared to last year, construction levels are well above the 10-year January average for Ottawa, which is 242 units," he said in the report.
"Though we are forecasting less construction activity this year, demand for homes is still firm and we can anticipate construction levels to remain at above-average levels in Ottawa."
As local housing demand eases to a more sustainable level of activity after more than three years of hyper growth, it is typically the higher end of the market that first feels the pinch.
That trend was evident in January's figures, with cheaper forms of housing enjoying a modest gain, while starts on costlier single-family homes down significantly.
Starts of multiple-type dwelling units, which include more affordable housing types such as condos and rowhousing, hit 310 in January. That was an increase of three per cent from a year ago and of about 8.4 per cent from December.
"While we saw an 18-per-cent decline in row (townhouse) construction in January, this was more than offset by a doubling in the number of semi-detached starts and seven-per-cent increase in apartment construction," Mr. Douchant said, adding that multiples will continue to make up a large number of the starts in 2005 "due primarily to the affordability that these units offer."
Singles starts, however, fell by 39 per cent from a year ago and by 60 per cent from December, to 85. That was the lowest one-month total in eight years.
"Rising listings in the resale market means consumers will be also afforded more choice than ever as the price gap between new and resale homes may influence potential homebuyers to look at the resale market first," Mr. Douchant said.
RESALES HOLD THEIR GROUND
On that note, the Ottawa Real Estate Board reported separately that the region's resale market held its ground in the first month of 2005.
The number of residential resales through the Multiple Listing Service totalled 637 in January, compared with 634 in December and 644 a year ago.
"The overall numbers as reported by our board for the month of January 2005 are very encouraging," board president Jeff Greenberg said in the report. "Our supply of homes ... continues to increase offering buyers a reasonable number of homes to chose from."
