RE/MAX releases its Housing Market Outlook for 2009 ...
The housing market in the nation’s capital continued at a steady clip until October, when economic instability dampened activity somewhat. While the market started to regain some of its lost momentum in November, home sales in Ottawa will fall short of record levels reported in 2007. By year-end, the number of homes sold will hover at approximately 13,900 units, down fi ve per cent from one year ago. Housing values, on the other hand, are projected to climb to $292,000 in 2008, a seven per cent increase over 2007 levels.Ottawa’s economic performance continues to be relatively immune to outside pressures. Strong employment numbers, higher immigration, healthy area spending and a solid banking industry continue to prop-up the local economy. According to Statistics Canada, the city’s largest employer—the federal government— provides about 119,000 jobs in Ottawa, 18 per cent of the 663,000 in the capital region. Job security in the civil service sector is expected to help off set the impact of a sluggish high-tech manufacturing sector in 2009.
Consumer confidence will be of paramount importance in 2009. Aff ordability levels are forecast to experience significant improvement over 2008 levels. The key drivers in healthy housing markets—job security and low interest rates—are expected to be present and accounted for. Inventory levels are predicted to edge up marginally, with properties moving within 45 to 50 days, an increase over last year. The balance of power in the market will shift to buyers, who will have a greater selection of homes from which to choose from and the luxury of time in making their real estate decisions. Entry-level buyers will assume a more traditional role in 2009, taking a backseat to move-up activity. Tighter credit restrictions may also have an impact on first-time buying activity. The market for luxury homes in Ottawa is expected to soften as purchasers wait for portfolios to recover.
Stock market volatility during the latter half of 2008 may serve to bolster sales of income-producing properties in 2009, as investors move their funds into tangible assets. By year-end, approximately 13,500 homes are expected to change hands, a figure more in line with levels reported in 2006. Average price should hold steady at $292,000.
** Excerpt from The RE/MAX Housing Market Outlook 2009.
To view the full report, go to www.remax-oa.com