Ottawa’s housing market seems to be outperforming many other cities in Ontario, according to the Canadian Real Estate Association (CREA).
Home prices rose 7.1 per cent in Ottawa in August compared to the same month a year prior, according to data CREA released Monday.
The price of a two-storey single-family home increased 8.2 per cent during the same time.
Ottawa’s real-estate market didn’t see the same price growth, as did southern Ontario, said Ben Rabidoux. He is president of North Cove Advisors, a real-estate market research firm.
“You could almost argue this is a bit of a catch up … because Ottawa had underperformed for so long,” he said.
Ottawa’s growth was higher than several other places in the province the association tracks. Home prices rose 1.4 per cent in the Greater Toronto Area, 6.6 per cent in the Niagara region and 5.5 per cent in Guelph.
The Hamilton and Burlington area outpaced Ottawa’s numbers with a price increase of 7.2 per cent.
Prices in southern Ontario rose considerably over the past several years and have risen faster than people’s incomes. There is a bit more room for prices to grow in Ottawa. Demand will to stay a little more buoyant than it would in the southern Ontario metros.
That could change if interest rates go up considerably or if there is a sudden surge of supply, Rabidoux said, but he expects prices may continue to rise for a few more quarters
Another Stellar Year for Ottawa’s Real Estate Market
Year to date activity increased by 2.4 per cent from 2017. The total number of residential and condo units sold throughout all of 2018 was 17,476, compared with 17,065 in 2017. Residential property class sales decreased slightly to 13,418 from 13,478 in 2017. Condominium property class sales were up 13.1 per cent with 4,058 units sold in 2018 versus 3,587 in the previous year.
The average sale price of a residential-class property sold in December in the Ottawa area was $453,011. That’s an increase of 4.7 per cent over December 2017. The average sale price for a condominium-class property was $278,295. That’s an increase of 9 per cent from this month last year. Year-end figures show an average sale price of $446,661 for residential-class properties in 2018. That’s a 5.1 per cent increase from 2017 and $278,316 for condominium properties, up 3.2 per cent from last year.
Home prices were up very slightly in the City of Toronto and down in the surrounding GTA regions. The condominium segment, performed better from a pricing perspective than the detached market segment. The average price for condominium apartment sales across the TREB market area was up by 7.8 per cent year-over-year.
Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options. With this said, it is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint.
New listings receded markedly in 2018. In many neighbourhoods, some buyers still struggled to find a home meeting their needs. The result was a resumption of a moderate year-over-year pace of home price growth in the second half of the year. Price growth was strongest for less-expensive home types. Many home buyers sought more affordable home ownership options.
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