Future Real Estate prices in Ottawa? Not Boom or Doom but Much Ado About Nothing says the CIBC researchers: Canadian House Prices Not Based on Demographics Alone April 18th, 2007 – The CIBC Canadian Real Estate Report is predicting that Housing prices will double in the coming 20 years! It generated much press last week. In Ottawa that would mean that in April 2027 the average sale price for a property would be $548,000! In other words housing prices will increase 5% a year! CIBC really went out on a limb on this prediction!!! The Ottawa MLS® average sale price has increased an average 4.5% per year in the previous 20 years so a 5% prediction is a safe bet! Of interest, the report debunks the boom and bust theorists who have predicted a demographic influenced bust in housing prices between 2011 and 2015.
The report authors acknowledge that new home construction will slow down but with immigration, downsizing Boomers and low interest rates the resale market should remain active. There is a good article on this report here… http://www.cbc.ca/canada/british-columbia/story/2007/04/18/houseprices.html and you can read the report itself here at http://research.cibcwm.com/economic_public/download/cwcda-070418.pdf