Royal LePage: Ottawa home prices see slight increase
July 13, 2016
On July 13, data was released from the Royal LePage House Price Survey, which gathers information on two-storey homes, bungalows and condos in 53 real estate markets across Canada.
The brokerage anticipates the average price of a home in Canada will be 12.4 per cent higher than average prices at the end of 2015.
“Our forecasting models, which pointed to a slowing housing market as the year progressed, included a modest increase in the cost of borrowing,” said Phil Soper, president and chief executive officer of Royal LePage.
Economic and social “disruptions” have introduced new risks, causing the Bank of Canada to leave interest rates as is for now, Soper said in a press release on July 13.
Canada’s real estate market showed high appreciation in the second quarter of 2016, with the highest year-over-year increase in the last five years.
The average price of a home in Canada increased by 9.2 per cent year-over-year to $520, 223 by the second quarter of 2016.
So what does that mean for Ottawa’s housing market?
The average aggregate price of a home in Ottawa in the second quarter of 2016 increased by 2.3 per cent year-over-year to $401,288.
Condo prices increased slightly by 0.6 per cent to reach a median price of $311,964. Increases in condo prices have slowed due to reduced buyer interest and less units being developed, said John Rogan, broker of record at Royal LePage Performance Realty.
Median prices of two-storey houses and bungalows also increased, by 3.1 per cent and 0.5 per cent respectively, year-over year.
“We have seen healthy ongoing sales activity levels throughout the first half of this year, largely due to better weather than we saw in 2015,” said Rogan.
Rogan confirmed in a press release that despite fewer listings, inventory levels are still strong.
First-time buyers and move-up buyers looking to buy in the Ottawa region have created a balanced market for the spring and summer months, he added.
As for the second half of 2016, Royal LePage predicts aggregate prices to increase by 2.5 per cent year-over-year in the region.
“We don’t see anything coming up on the horizon that will throw a monkey wrench into Ottawa’s housing market,” Rogan noted.
RELATED READING
About Olivia Bowden
Olivia Bowden is a freelance writer and is currently an Editorial Intern at YP Next Home. She attends Carleton University and is completing a Master of Journalism degree. Olivia enjoys learning and writing about the Canadian real estate market.