Gloucester, Ottawa West top housing markets in Canada.
February 10, 2005 - Homeowners in two Ottawa communities are sitting pretty, comfortable in the knowledge that their homes have increased in value more than any others in Canada over the past five years. A Canadian real estate firm says a typical detached two-storey 1,500-square-foot three-bedroom home in Gloucester jumped in value by 92 per cent since 1999, from $169,100 to almost $325,000 last year. That was the greatest appreciation in value of any community surveyed by the company. Residents of Ottawa West were a close second. In that part of the city, the firm says a typical 1,250-square-foot three-bedroom home jumped 86 per cent in value, from $156,200 in 1999 to $290,075 last year. Rather than quoting average sale prices, the firm tracks the selling price of a typical home in each community. A typical home in central Ottawa jumped 32 per cent in value over the same period, while the typical Orleans home increased 36 per cent. While Ottawa was one of the hottest markets in the country over the past five years, the firm says prices will increase at a slower rate in 2005. The bull market in housing is being driven by low interest rates, and a strong economy that is providing job stability, consumer confidence and an increasing number of home buyers. "I can see nothing on the horizon that will change market direction. Past downturns in the market were usually caused by significant inflation leading to large increases in interest rates and people finding they could no longer sustain their skyrocketing mortgage payments. But nothing remotely like this is in sight today, " said the firm's president. Interest rates continue to drive the market, and the firms president says a decline in new home construction in 2005 is likely to prompt more buyers to look at the resale market. He says Alberta will have the strongest housing market in Canada this year, thanks to a buoyant energy sector. Price increases in Edmonton will outstrip increases in Calgary, but only because Edmonton home prices are generally lower than in Calgary.
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