The Canadian housing market.
What the financial market is saying for 2014.
An expected increase in homes for sale over the next two years will help provide homebuyers with more choice and hopefully bargaining power … Over all, we expect the level of sales to stabilize in 2014 and prices to grow by a more moderate 2 per cent in the year.” Diana Petramala, economist, Toronto-Dominion Bank.
Look for current balanced conditions and somewhat higher interest rates to lead to steady sales this year, with price growth tucked below the rate of income growth.” Robert Kavcic, senior economist, BMO Nesbitt Burns.
“Market conditions remain fairly well balanced, though slightly favour sellers at the margin, putting continued modest upward pressure on prices. Adrienne Warren, senior economist, Bank of Nova Scotia.
“The housing market has been building very steadily over a period based on growth, jobs, good income, and a Canadian economy that’s been in good shape. Angel Gurria, secretary-general of the OECD.
Many economists say they are surprised by how well Canadian home prices have held up in the wake of the market downturn that impacted much of the country from the summer of 2012 until this past spring.
“Prices have been much stronger than we anticipated them to be,” Toronto-Dominion Bank real estate economist Diana Petramala
New home starts in Ottawa should remain stable through the first part of 2014 before softening Sales will initially move a bit higher before scaling back as interest rates start inching up by mid-2014.
In Ottawa, look for a drop of over 36 per cent in condo construction to allow for absorption of existing inventory. More row homes will be built and about the same number of single-family homes as in 2013. All told, about 5,350 units will be started, down from a forecasted 6,300 for 2013. Canada Mortgage and Housing Corp.
So what conclusions, if any, can we draw from these economists if you are thinking of buying or selling a home in Ottawa in 2014?
For sellers, prices look to flatten later in the year.
For buyers, interest rates appear headed up later in the year and mortgage rules may well be tightened.
So it appears to make most sense for both buyers and sellers to begin the process as soon as practical.