The Best Mortgage Rates in Ottawa

Ottawa Key Stats

• Ottawa population (2011): 921,823
• Dwelling units (2011): 384,358
• Unemployment Rate (2012): 6.2
• Employment Level (2012): 531,500
• Average Weekly Earnings (2012): 1,051

Source: Stats Canada, CMHC

Ottawa Mortgage Rates to Moderate in 2013

Mortgage rates are expected to remain at historical lows for the first portion of 2012 before moderating later in the year. The CMHC forecasts that the one-year posted mortgage rate will be within the 3.1 to 3.6 range, with five-year posted rates in the range of 5.0 to 5.4 per cent. Rates are expected to rise in 2013 to 3.5 to 4.1 per cent for one-year, and 5.1 to 5.6 per cent for five-year mortgage rates.

Source: CMHC

Ottawa 2012 Housing Market Outlook

Ottawa's housing market will experience sustained conditions, as strengthening local economics and positive migration support home buying demand. Housing prices will grow at a moderate rate, in line with that of general inflation, through this year and the next. Prices are also expected to balance in 2013, as the pace of income growth has not stayed consistent with housing market prices over the past few years.

Home sales are expected to remain at historically high levels in 2012 – marking four years of unchanged activity levels - despite tighter mortgage rules and growing prices. Homeowners will take advantage of this by putting their units on the market, boosting 2012 listings by 1.7 per cent. This will also add to one and a half-year inventory of home sale listings.

The new home market is expected to increase by eight per cent this year to 3,140 units, up from 2,954 in 2011. However, this will decrease again by 6.3 per cent to 2,940 in 2013.

Single-detached home construction is expected to make a comeback from historically declining levels, as improving job and income growth will influence demand.

Source: CMHC Housing Market Outlook

Ottawa Housing Market & Mortgage Rate Forecast

• 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