“The answer is no,” says Abdul Kargbo of the CMHC, the market is little jeopardy of a major correction.
While condo supply in the nation’s capital has been on a constant upward trend since 2001, the number of unsold units has remained flat. In addition, the demand has been able to keep pace with the development of new condo complexes throughout the city.
There has been a highly-publicized battle between developers and residents of certain neighbourhoods within city limits about the new projects. But despite that, the number of new builds has actually decreased, which bodes well for the market.
In 2010, a total of 1,397 new units were built. The following year, that figure dropped slightly to 1,324. As of September, 948 new condos have been completed. These declines, however, will not jeopardize the market.
"The growth rate is not going to be as brisk as we've seen in the last few years," Kargbo said, particularly when it comes to prices.
Overall, the Ottawa housing market appears to be quite stable. But despite the abundance of new condos available, investors appear to have little interest in purchasing or constructing new rental properties. This is due to the fact that prices and demand have been quite high since 2008. With only 400 rental units built in 2012, rents will likely remain high as well.
As a result, investors may want to exercise caution when buying properties in the greater Ottawa area. Currently, the city is geared more towards sellers than buyers, a statistic that might cause some investors to balk.
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