Local home prices still rising, market more balanced: report.
April 6, 2004 - Home prices continued to climb in most cities across Canada in the first quarter, according to a report from Royal LePage Real Estate Services, and Ottawa was no exception.
Royal LePage reported Monday that the average price of a detached bungalow in the 14 cities surveyed was $241,190 in the first quarter, up by 6.3 per cent from a year ago.
A standard two-storey home increased in value by 6.9 per cent, to $303,547. A standard condominium appreciated by five per cent, to $172,072.
Ottawa's home prices also gained year over year, keeping the local average higher than the national average.
According to Royal LePage, the typical detached bungalow in Ottawa priced at $252,857 in the first quarter, up by 5.4 per cent from $240,000 a year ago. A standard two-storey home priced at $250,286, up by 5.2 per cent from $238,000 a year ago.
The local condominium market saw the biggest year-over-year price gains. In the first quarter, the typical Ottawa condo priced at $158,429, up by 7.9 per cent from $146,857 a year ago.
For Ottawa, the report found that the number of listings on the resale market is on the rise, making for a more balanced market. That emerging trend follows three years of feverish activity that saw demand far outstrip supply and send home prices surging in the double digits.
"Housing market activity in Ottawa remained steadfast as average prices edged higher, year-over-year," the report read. "Price increases were sustained by strong demand, but were also tempered by a steady flow of inventory. First-time buyers, buoyed by strong consumer confidence and excellent affordability, dominated the market."
Looking at the nation as a whole, the biggest price gains year-over-year were seen in St. John's, Nfld. and Vancouver. In Toronto, the year-over-year price gains were characterized as "average."
The price of a detached bungalow in Toronto was $332,366, up by 4.8 per cent from a year ago. A two-storey home carried an average price tag of $458,444, up by seven per cent. The price of the standard condo in Toronto hit $231,433, up by 2.6 per cent.
For the country, the report forecasts "another vibrant spring market as buoyant consumer confidence and low interest rates continue to drive demand. All signs are pointing to another banner year for the Canadian housing market."
"There are some slight signs of moderation over last year's record-breaking activity, however the first quarter of 2004 has demonstrated that the market is maintaining its incredible strength," added Phil Soper, president and CEO of Royal LePage Real Estate Services.
"Canadian consumers have become accustomed to the realities of the highly charged housing market over the past few years and are becoming increasingly savvy," he said. "Some vendors have been able to maximize their homes' value by sprucing up their décor, while buyers know they have to be well prepared to successfully negotiate through multiple bids."
© Copyright 2003 The Ottawa Business Journal