Tuesday, November 27, 2012

CMHC - Condo bubble not ready to burst in Ottawa

Condo construction will stabilize next year, but demand remains high - click here

The recent CMHC Housing Outlook Conference had a lot to say about Ottawa Condos and the Ottawa real estate market.

Are there too many condos being built?
With towers popping up across the city, is the condominium bubble about to burst in Ottawa?

“The answer is no,” continued Abdul Kargbo of the CMHC.  While the supply of condo units for sale has been rising since 2001, the percentage of unsold units has remained flat, Kargbo said, indicating that so far, demand is keeping up with condo construction.

How is the rental market in Ottawa?
The rental market will continue to remain tight as investors express little interest in building or buying rental buildings and units. Prices and demand have been high since 2008 and with only 400 new rental units completed in the past year, rents will remain high, PĂ©rez Torres said.

Monday, November 26, 2012

Huge News! Mark Carney to leave Bank of Canada and Head Bank of England

Carney to leave Bank of Canada early, takes on big job at Bank of England

  Appointed Feb. 1, 2008, Carney's legacy will have been to help steer the Canadian economy through the 2008-09 recession, revamping the management of the institution and introducing what the central bank called the most sophisticated, plastic currency in the world.

Saturday, November 17, 2012

Downsizing Federal Government

Update to the downsizing of the Canadian Federal Service

The federal government has cut 10,980 jobs as part of its bid to balance the budget, Treasury Board president Tony Clement said Friday.

As part of the cuts, 7,500 positions were eliminated through attrition, by cutting vacant jobs or not replacing people who left willingly, Clement said in a news release.

Ottawa is scheduled to have 4,800 of the 19,200 total positions being cut.

to read the complete article click here

Thursday, November 15, 2012

New Ontario Building Code Is Out

The Ministry of Municipal Affairs has released the next edition of the Ontario which will help ensure public safety, increase energy efficiency and contribute to the competitiveness of the building sector. Most of the new Building Code will come into force on Jan. 1, 2014. However, certain requirements will come into force later on Jan. 1, 2015 and January 1, 2017.
The revised Building Code will put Ontario among North America's leaders in water conservation with requirements like efficient toilets and showerheads for new homes and rain water harvesting for all new buildings. The revised code also increases Ontario's consistency with other codes across the country so businesses can sell their products and services nationwide.

Click Here for the new code.

Wednesday, November 14, 2012

Alt Hotel coming to Ottawa - 199 Slater

The Alt Hotel announced today, it will be part of the exciting 199 Slater development in Ottawa

Click here to read the announcement

CMHC USA predictions for 2013

- North American economy has been in neutral but will switch into DRIVE in mid-2013
- USA consumers are starting to spend
- USA economy will drive the world economy again, especially in 2014
- China was growing at 10%, now down to 7.5%
- Emerging countries still need resources (China, Brazil, India, etc)
- USA equity markets are improving
- every 1% growth in the USA economy translates to a 6% growth in employment in Southern Ontario
- USA household debt is low
- Credit is loosening in USA
- 150,000 new jobs created in the USA
- USA housing is starting to increase in value
- there is now 5.9 months supply in the USA housing market (lowest since pre-2007)
- big issue facing the USA is the Fiscal Cliff
- distressed sales are 35% of the USA market, down from 50%
- USA banks are staggering foreclosures to keep housing prices rising
- Shadow inventory is not a big concern going forward

*** USA is approaching pre-recession car buying numbers (for volume)
This is an indicator of the coming housing boom, as people are starting to purchase big ticket items again

CMHC Housing Outlook Conference 2013

- Ottawa real estate market to re-gain strength mid-2013

- USA consumer spending is up, driving their economy forward

- manufactoring sector driving Ontario economy

- 85% of apartment construction in Ontario is Toronto, Ottawa and Hamilton

- Ottawa affordability index is tightening

- average Ottawa income $94,700 (household)

- Ontario is in the early stages of closing the gap with Alberta

- Ottawa volume of sales will be down, prices increase modestly

- condos in Gloucester and Nepean will be hot

- under $250k will be a top price point for buyers

- Ottawa single family starts expected to drop another 15%

- Rental market will stay strong

- Ottawa economy will remain stable

- unemployement in 2013 expected to be 6.3% - one of lowest in Ontario

- 4800 Federal job reduction less than 1% of government work force

- multifamily construction to increase (towns, semis, condos)

- 8.9% population increase in Ottawa in 2012 (921,823)

- house built in Ottawa annually is 6300

- new households formed 5400

- 1/3 of people in Ottawa earn less than $40k family

- 40,000 students in ottawa in 2000, 65,000 now

- 10% of students in Campus housing, at Ottawa u only 7%

- 2200 more people expected to move into retirement homes over next 10 years in Ottawa

- first time home buyers will lead the recover in Ottawa

- since Q3 2008 - TSX is plus 5%, a condo is plus 30% as an investment

- 29% of Ottawa is between 45 and 65

- hot areas will be inside greenbelt (West and East of downtown)

- downtown will be neutral, as prices are increasing and young buyers cannot afford

Monday, November 5, 2012

CMHC - 2013 lookout is positive

CMHC released a bulletin about Ottawa real estate that indicates the housing market will moderate and be in balanced territory for 2013.  Housing prices will grow positive.  The later part of 2013 will be stronger than the beginning.

Check out the report here