Is the Ottawa Condo Market Going Burst?
I don’t know about you but I am amazed at how the prices of condos in Ottawa keep climbing. It seems everywhere you look in the downtown, there are new condo buildings being built or just opened. Plus every month brings announcements of new condo towers being launched! How long can this go on before this ‘bubble’ bursts?
The past 10 years has seen just an incredible number of new condo units added to Ottawa’s housing inventory, particularly in the central and downtown neighbourhoods.
CMHC just published new numbers showing that builders started construction on 153 new condo units in the month of April 2012 alone in Ottawa, with most of those in the downtown neighbourhoods!
I, like many others, have been expecting that this surge in supply will eventually outstrip demand – who is buying all these units anyway? Surely, there must be a looming slow-down in construction, sales and prices. But every month that goes by seems to prove me wrong!
Prices for condos remain strong; the average price of condos rose 6.0% over the past year. This is about the same as the price increase for single family homes in Ottawa.
Can the condo market really be that strong? Surely, prices can’t keep going up. Or can they? Maybe the conventional wisdom – that there is a bubble waiting to burst – is wrong. I know some developers and they are fairly smart people. They must have market research that there will be buyers for all these new condo units.
Let’s just hope – for the sake of those of us who already own or who are planning to invest in a condo – that they continue to be right!
Tags: Ottawa Condo Bubble, Ottawa Condo Market
Categorised in: Ottawa Real Estate Market
This post was written by John King Team