LOW INVENTORY CONTINUES TO DRIVE OTTAWA REAL ESTATE PRICES
So, here’s the quick update on Ottawa’s real estate market as of right now:
The very low inventory levels are forcing home prices to continue rising (some neighborhoods are absolutely red hot right now). Comparing February sales numbers of 2018 to February of 2017, condo prices are up 5.6% on average, and residential homes are up 2.7% on average.
I think its safe to say that Ottawa has a supply issue. There aren’t enough sellers to keep up with demand, and builders are having trouble finding land at feasible prices where they can make the numbers work. So what we’re left with is a scramble for buyers to find affordable homes, and properties are going to the highest bidder (I just watched a downtown triplex sell for $100k over-asking price last week).
This lack of availability, and increasing home prices, are forcing buyers back to the condo category. So after 4 years of a ‘condo slump’, they’re finally becoming a popular option again. My prediction is that the lower-priced condos will become a very hot commodity over the next year or so. And we’ll definitely see the lower end freehold homes continue to sell like hot cakes.
Developments in Ottawa:
Claridge has released their plans for 5 new condo towers at Lebreton Flats. I will just say, I was hoping a more ‘creative & innovative’ company would take over in Ottawa and give us something a bit more modern & attractive at this landmark development site. (sorry, Claridge, but you’ve been getting away with this stuff for too long now).
And there’s been some controversy over the new proposal for the Chateau Laurier expansion. Personally, I’m a fan of the larger windows and use of glass (although the design may need some ‘re-working’ :))
It looks like the Bank of Canada is holding key interest rates at 1.25% for now. This is following some uncertainty in a few of Canada’s ecomonies. As always, speak to a mortgage broker for the best advice and guidance in this area.
That’s it for February in Ottawa’s real estate market. Now get out and enjoy the end of winter, and take advantage of the last weeks of skiing
Sales Representative. Residential & Commercial.
Capital Homes Realty
217-1419 Carling Ave, Ottawa, ON