Ottawa real estate market remains stable.
September 28, 2006 - Ottawa continues to hold its position as one of Canada's most stable housing markets in the latest housing survey by Royal Lepage.
A "vibrant local economy and strong confidence" are resulting in modest increases in average house prices in Ottawa. The survey says the city centre remains a bright spot with homes in the area attracting attention due to their convenient location and proximity to downtown amenities.
According to the report, the average price of a standard bungalow sold in Ottawa during the third quarter was $290,083. Contrast that to Calgary, where the real estate market is described as "frenzied." The average Calgary bungalow sold for $395,067, an increase of 56.5 per cent in the past twelve months.
Similar price increases are seen for 2-storey homes and condos.
Nationally, Royal LePage says robust economic conditions, low unemployment, modestly growing salaries and wages, and sound consumer confidence contributed to the overall strength of the residential real estate sector in the third quarter.
"For all but the west, we have moved on from the frenzied expansion that characterized the first half of this decade, and are poised to show continued growth at a more moderate pace," says Phil Soper, president and chief executive officer of Royal LePage Real Estate Services. "Gone is the sellers' market that we have lived with for some years. We welcome the more reliable conditions that are characteristic of a healthy balanced market."
While the pace of growth in Canada has slowed, Royal LePage says the domestic housing market is expected to outperform the American market. The economic and financial fundamentals driving the residential real estate sector in Canada are markedly different than those found in the United States.
"Canada's housing market is likely to outperform the
American market through 2007," says Mr. Soper. "A number of factors are working in Canada's favour, including healthy personal and governmental debt levels, the relatively modest rise in interest rates in our country, and general affordability in our major cities. In addition, Americans are now seeing the downside of a tax system that encourages maximum homeowner leverage, and aggressive financial products such as zero- and negative-amortization mortgages that work only in a high price growth environment."
© Ottawa Business Journal - 2006