• Population: 1,220,700 (Stats Canada 2009)
• Job growth of 1.1% in 2010
• Average weekly earning to grow slowly over 2010 to a 4% increase
• An increase in international migration is expected

Ottawa Mortgage Rates Will Slowly increase in 2010.

The CMHC best case scenario, expect mortgage rates will continue to slowly increase in 2010 with a one year mortgage rate to be in the 3.6 to 4.8% range and the three and five year mortgage rates to be in the 4.2 to 6.7% range. In 2011, CMHC forecasts that the one year mortgage rate will be in the range of 5.0 to 6.0% whereas, the three and five year mortgage rate will be in the range of 5.6 to 7.2%. However, if the economy recovers at a faster rate than expected, mortgage rates may increase at a more rapid rate.

Ottawa House Prices Still Increasing Above Inflation

CMHC reported that existing homes sales should experience an all time record in 2010 by increasing 6% before declining in 2011 where 15,000 existing home sales are expected. Ottawa has experienced a strong price growth in the beginning of 2010. Price growth for 2011 will be at a slower rate than 2010. The resale market is expected to remain strong in all areas of Ottawa. The downtown core is expected to see the highest recovery.

The home market is expected to grow 8% in 2010 including a 15% increase in townhouses and a 10% increase in apartments. New home construction will begin to slow in 2011. The average price of a single home in 2010 will increase 7% and is expected to be $419,00 and raising to $431,500 in 2011.

CMHC Ottawa housing market & Ottawa mortgage rate forecast