Ottawa, Gatineau housing starts to decline in 2013 and 2014

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Housing starts in both Ottawa and Gatineau are expected to fall for the next two years, according to a third-quarter forecast released by the Canada Mortgage and Housing Corp.

Starts in Ottawa will decline nine per cent in 2013, from 6,026 to 5,475 starts, the forecast predicts. By 2014, housing starts will slide lower to 5,245.

In Gatineau, CMHC predicts a 43 per cent fall in 2013 to 1,550 starts, a sharp drop from 2,759 in 2012. Housing starts in 2014 will stabilize to 1,600 starts, the forecast stated.

Nationally, housing starts will also slip. From 214,827 in 2012, levels this year will range between 177,100 to 188,500 units in 2013, and between 165,600 to  207,600 units for 2014.

Ottawa housing resales are also forecast to fall. From 2012 levels of 14,497 sales, they will slide by three per cent in 2013 to 14,000 before moving up again to 14,200 in 2014.

In Gatineau, MLS sales will drop five per cent in 2013 to 3,675, down from 3,865 sales in 2012. In 2014, sales will increase again to 3,700.