(PRWEB) March 26, 2013
Toronto, Ontario – According to the latest data published by the Canada Mortgage and Housing Corporation, housing construction in Ottawa has declined in February. According to Marcus Arkan, CTO of Syndicate Mortgages, this could be a sign of a long term cool-down in Ottawa’s previously red hot housing market.
The latest data was also published by Ottawa’s major newspaper Ottawa Citizen. Ottawa Citizen reported on CMHC’s data in an article published on 8th March, 2013. According to the article, dipping construction is the latest sign of the Ottawa housing market decline. Mr. Arkan also predicted a slowdown in Ottawa. However, he refuted the speculations about a severe cool-down. “As mortgage experts, we have witnessed a red hot Ottawa market, but now the situation is changing all over Canada. Decline in construction is a very clear indicator of what the future might hold for Ottawa. Yet, Ottawa market is expected to remain strong as compared to a majority of other cities.”
According to CMHC’s data, only 175 constructions were started during February 2013. While it was significantly less than 314 homes in February 2012, it was also terribly lower than January 2013 when construction started for a total of 512 homes in Ottawa. CMHC further revealed that out of 175 homes, 76 were semi detached homes. Construction of semi detached homes, however, remained lower in January when only 49 units were started.
According to Mr. Arkan, the decline is the outcome of last year’s rule changes introduced by Finance minister Jim Flaherty. “The housing market slowdown is not uncalled for. Last year, Mr. Flaherty introduced several changes to curb mortgage lending. While mortgage rates remain low throughout Canada, decline in construction will impact the economy in many other ways.”
At the same time, Ottawa Real Estate Board also presented data that indicate a 9.3 percent year to year decline in resale home sales. The average sale price was also down 1.1 percent from February 2012. Mr. Arkan added that despite the declining numbers, there is nothing to worry about as yet. “The market is slowing down, but it is just a part of the real estate cycle. We have seen correction in all of the major markets in Canada. Same goes for Ottawa. We are clearly not heading for a crash.”
CMHC’s data is available at CMHC’s website http://www.cmhc-schl.gc.ca.
Learn more about changes in mortgage rates and latest happenings in Canada housing market at http://www.syndicatemortgages.com
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.
Syndicate Mortgages Inc.
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