The May 2013 job numbers released by Statistics Canada explain in large part why Ottawa’s booming real estate market has slowed down. According to Statistic Canada, the total number of people employed in Ottawa fell to 695,600, a 2.7 % decline from the 714,600 jobs reported a year ago.
Since employment is often cited as the number one driver of the housing market, this is not good news for real estate investors. It explains why the Ottawa Real Estate Board reports that the number of sales so far in 2013 in the Ottawa housing market is down about 10% from the previous year.
Job cuts in the federal public service appear to be the biggest culprit. Two years ago federal public service employment in the national capital region peaked at 177,300. In May 2013 this number had fallen to 152,400, a drop of 25,000 jobs.
Local Realtor® John King explains, “When more than 25,000 stable, high-paying jobs disappear in two years, it creates temporary uncertainty for real estate markets. But the bulk of federal cuts appear to be over, which could mean better days lie ahead for Ottawa real estate investors.”
To learn more about how to take advantage of local real estate trends, contact a member of Engel & Völkers Ottawa Central at 613-422-8688 or at firstname.lastname@example.org.
Tags: Investing, Ottawa Community, Ottawa Condo Market, Ottawa Realtor John King, The John King Team Ottawa
This post was written by Heather