Happy new year, and welcome to 2018!! (yes, I know its mid-January now :))
So here’s a quick summary of what went down in Ottawa’s real estate market over 2017.
First off, it was a record year for this city. Bidding wars were the norm, and selling over asking price was expected in many neighborhoods. We have a few criteria to thank/blame for this: low inventory levels, low interest rates, increasingly hot markets in other Canadian cities, stock market record gains, strong economic factors, major upcoming Ottawa developments, Canada’s 150th bday, and overall market confidence (more & more people are happy to invest their money here, and build a home here).
Looking at average sales prices, Ottawa homes in 2017 increased 6.8% over 2016. And the condo market felt this surge as well, with an average increase of 3.5% over 2016. The demand definitely outweighed the supply this year.
As for sales volume (number of homes sold), we saw a 10% overall increase of homes & condos from 15,526 units sold in 2016, up to 17,083 in 2017. Since inventory levels were low, the condo market experienced a huge boost, with a volume increase of 22% over last year. I know there’s quite a few people out there who were relieved to see that shift
Moving forward, there’s a lot of speculation as to how the market will perform in 2018. With the current momentum of 2017’s buying frenzy, I’d say it will continue to be hot for the next few months. My guess is that the increasing interest rates, and new mortgage rules, will start to curb this growth as we get closer to summertime. Overall, 2018 is expected to see increased overall growth, but it will be a more modest 2% to 4% (depending on asset class, location, etc)
If you’re thinking of buying or selling, bare in mind that there are a ton of variables to consider, and every property is different. Speak to your realtor to get expert guidance on how to proceed. You can contact me with any questions on real estate in Ottawa and beyond.
Sales Representative. Residential & Commercial.
Capital Homes Realty
217-1419 Carling Ave, Ottawa, ON
Cel: 613 262 1697
Connect on Linked In
Like My Facebook Page