The Canadian Real Estate Association downgraded it’s market forecast for the rest of this year and next. 

The Conference Board of Canada is also out with it’s five year outlook for cities, including the National Capital Region.    

Economist Mario Lefebvre of the Conference Board tells 1310News, the economic fundamentals can handle the stress.  
“There was a great period in terms of income growth for population over the past six, seven, eight, nine years,” he said.  

Ottawa Gatineau posted the lowest forecast G.D.P growth of the country’s 13 major cities, as it is driven by the federal government job cuts and a weakening tech sector.  

The Board does expect that to bounce back, doubling this year’s growth by 2016.

One engine in the housing market continues to drive the industry according to Lefebvre.  

“Expect condominiums to keep developing as the population ages,” he said.

One dark cloud for the market according to John Herbert of the Greater Ottawa Homebuilders Association is new single family home sales.  

They were down 10 per cent last year and could drop 20 per cent this year.   

“Unfortunately will result, I’m sure, in a number of layoffs and readjustments”.