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Old Man Winter Chills Ottawa’s housing market
April 7, 2008 : Members of the Ottawa Real Estate Board sold 1,086 residential units in March through the Board’s Multiple Listing Service® system compared with 1,303 in March 2007, a decrease of 16.7 per cent. There were 983 sales in February 2008.
“Record snowfalls and challenging weather certainly hindered sales last month. It’s tough for people to get out and see houses when even getting out of the driveway is a challenge,” said Board President Heather Skuce. “Even so, sales are up from February, and the homes that sold last month were on the market for an average of only 34 days, proving that interested buyers are obviously still out there getting it done, despite the snow,” she added.
The average price of residential properties, including condominiums, sold in March in the Ottawa area was $288,068, an increase of 5.1 per cent over March 2007. The Board cautions that average price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average price is calculated based on the total dollar volume of all properties sold.
The Ottawa Real Estate Board is an industry association of over 2,360 sales
representatives and brokers in the Ottawa area. Members of the Board are also
members of the Ontario and Canadian Real Estate Associations and are entitled
to use the term REALTOR. MLS is a co-operative marketing system used by the
Boards members to ensure maximum exposure of properties listed for sale.
MLS commercial and residential listings are available for viewing on the Boards
internet site at www.OttawaRealEstate.org and on the national website of The
Canadian Real Estate Association at www.mls.ca. Information about listings and
open houses is also available in the Boards weekly newspaper, Ottawa
Real Estate Guide.
| Year |
Average Resale Price |
+/-
(%) |
#
of Units |
Dollar Volume |
| 1990 |
$141,438 |
2.9 |
8,289 |
$1,172,387,639 |
| 1991 |
$143,361 |
1.4 |
8,399 |
$1,204,093,722 |
| 1992 |
$143,868 |
0.4 |
9,089 |
$1,307,624,524 |
| 1993 |
$148,129 |
3 |
8,249 |
$1,207,695,495 |
| 1994 |
$147,543 |
-0.4 |
7,630 |
$1,122,145,619 |
| 1995 |
$143,193 |
-2.9 |
6,481 |
$928,034,000 |
| 1996 |
$140,513 |
-1.9 |
8,644 |
$1,214,772,469 |
| 1997 |
$143,873 |
2.4 |
9,427 |
$1,356,294,270 |
| 1998 |
$143,953 |
0.1 |
9,547 |
$1,374,321,127 |
| 1999 |
$149,650 |
4 |
11,329 |
$1,695,386,933 |
| 2000 |
$159,511 |
6.6 |
12,692 |
$2,024,516,862 |
| 2001 |
$175,701 |
10.3 |
12,237 |
$2,153,357,748 |
| 2002 |
$200,271 |
14.1 |
12,894 |
$2,587,970,231 |
| 2003 |
$218,692 |
9 |
12,715 |
$2,780,665,960 |
| 2004 |
$235,678 |
7.7 |
13,158 |
$3,101,045,901 |
| 2005 |
$244,531 |
3.8 |
13,099 |
$3,203,112,488 |
| 2006 |
$255,889 |
4.7 |
13,783 |
$3,526,919,037 | |
House price appreciation across Canada
to slow as more listings come on stream in 2007, says RE/MAX
Homebuyers across the country will breathe a sigh of relief in 2007, thanks to a nationwide influx of new listings that is expected to slow price appreciation in major Canadian centres.
The RE/MAX Housing Market Outlook 2007 found that while the number of homes listed for sale is set to climb, demand will remain strong in the 17 markets surveyed, including Vancouver, Victoria, Kelowna, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Kitchener-Waterloo, Hamilton-Burlington, Toronto, Ottawa, Montreal, Halifax, Charlottetown, Saint John and St. John’s. With few exceptions, projections for sales volume in 2007 match or fall short of peak performance reported in 2005 and 2006, with more balanced conditions – characterized by healthy inventory levels and less urgency in the market -- expected to emerge.
Nationally, 462,000 properties are forecast to change hands next year, making 2007 the third best year on record. After four years of double-digit gains, average price is predicted to climb a modest five per cent to $290,000 by year-end 2007, up from $275,000 one year ago. All but three of the markets surveyed (Kitchener-Waterloo, St. John’s, and Charlottetown) are predicting further escalation in housing values, ranging from three to 10 per cent, in 2007.
Strong economic fundamentals continue to fuel healthy residential real estate activity in markets across the country, despite what is happening south of the border. The country is heading into another year of economic growth. Consumer confidence levels are strong. Unemployment levels are forecast to remain low. Oil prices are expected to hover at $60 per barrel. The Canadian dollar continues to climb. The Bank of Canada is holding the line on interest rate hikes.
Leading the country in terms of percentage increase in average price in 2007 are Calgary and Edmonton, with housing values rising 10 per cent to $385,000 and $265,900 respectively. Both markets experienced substantial upward pressure in pricing during 2006 –with Calgary climbing 40 per cent to $350,000 and Edmonton rising 25 per cent to $241,750.
Affordability is one of the more serious issues facing today’s real estate consumer, yet purchasers remain steadfast. Buyers are simply getting more creative in their approach to homeownership, considering alternatives to single-detached homes such as semi and row housing, town houses, and condominium apartments. They’re also looking at peripheral areas located close to the city centre that provide a better bang for the buck. New mortgage products that extend the traditional 25-year mortgage amortization period to 30 and 35-years may also help them realize their goal of owning a home sooner rather than later.
In 2007, the highest percentage increase in unit sales is expected to occur in Saskatoon, where sales are forecast to climb seven per cent to 3,630 units. Edmonton is expected to place a strong second, with the number of homes sold climbing five per cent to a record 21,300 units. Regina and Hamilton-Burlington are tied for third place, both projecting a two per cent increase in unit sales to 2,950 and 13,800 units respectively. Vancouver, Kelowna, Winnipeg, Ottawa, and Saint John are all projecting sales volume on par with last year’s levels.
|
Residential
MLS Average Price
|
|
Market
|
2006
Estimate
|
%
Change
|
2007
Forecast
|
%
Change
|
|
Vancouver
|
$
503,000
|
18.0%
|
$543,240
|
8.0%
|
|
Victoria
|
$
420,000
|
10.0%
|
$440,000
|
5.0%
|
|
Kelowna**
|
$
422,900
|
19.0%
|
$460,965
|
9.0%
|
|
Calgary
|
$
350,000
|
40.0%
|
$385,000
|
10.0%
|
|
Edmonton
|
$
241,750
|
25.0%
|
$265,900
|
10.0%
|
|
Saskatoon
|
$
158,000
|
9.0%
|
$164,000
|
4.0%
|
|
Regina
|
$
134,000
|
8.0%
|
$140,700
|
5.0%
|
|
Winnipeg***
|
$
153,000
|
14.0%
|
$160,000
|
5.0%
|
|
Toronto
|
$
353,000
|
5.0%
|
$371,000
|
5.0%
|
|
Hamilton-Burlington
|
$
248,000
|
8.0%
|
$255,400
|
3.0%
|
|
Ottawa
|
$
258,000
|
4.0%
|
$268,300
|
4.0%
|
|
Kitchener-Waterloo
|
$
240,000
|
9.0%
|
$240,000
|
N/C
|
|
Montreal
|
$
213,900
|
5.0%
|
$224,600
|
5.0%
|
|
Halifax-Dartmouth
|
$
212,000
|
12.0%
|
$226,800
|
7.0%
|
|
St.
John's (Newfoundland & Labrador)
|
$
141,160
|
n/c
|
$141,160
|
N/C
|
|
Saint
John
|
$
126,000
|
5.0%
|
$130,000
|
3.0%
|
|
Charlottetown
(PEI)
|
$
125,000
|
7.0%
|
$125,000
|
N/C
|
|
National
|
$
275,000
|
10.0%
|
$290,000
|
5.0%
|
|
|
|
|
|
|
|
Residential
MLS Unit Sales
|
|
Market
|
2006
Estimate
|
%
Change
|
2007
Forecast
|
%
Change
|
|
Vancouver
|
40,000
|
-5.0%
|
40,000
|
N/C
|
|
Victoria
|
8,000
|
n/c
|
7,400
|
-8.0%
|
|
Kelowna**
|
9,900
|
-5.0%
|
9,900
|
N/C
|
|
Calgary
|
32,500
|
3.0%
|
30,000
|
-8.0%
|
|
Edmonton
|
20,300
|
9.0%
|
21,300
|
5.0%
|
|
Saskatoon
|
3,400
|
5.0%
|
3,630
|
7.0%
|
|
Regina
|
2,900
|
6.0%
|
2,950
|
2.0%
|
|
Winnipeg***
|
13,000
|
8.0%
|
13,000
|
N/C
|
|
Toronto
|
80,000
|
-5.0%
|
78,000
|
-3.0%
|
|
Hamilton-Burlington
|
13,565
|
n/c
|
13,800
|
2.0%
|
|
Ottawa
|
14,000
|
5.0%
|
14,000
|
N/C
|
|
Kitchener
- Waterloo
|
58,000
|
-6.0%
|
5,500
|
-5.0%
|
|
Montreal
|
49,500
|
n/c
|
49,506
|
N/C
|
|
Halifax
|
6,300
|
-2.0%
|
6,000
|
-5.0%
|
|
St.
John's (Newfoundland & Labrador)
|
3,300
|
3.0%
|
3,000
|
-9.0%
|
|
Saint
John
|
1,850
|
-3.0%
|
1,850
|
N/C
|
|
Charlottetown
(PEI)
|
1,200
|
-17.0%
|
1,100
|
-8.0%
|
|
National
|
483,250
|
n/c
|
462,000
|
-4.0%
|
|
*Source:
CREA, TREB, OMREB, RE/MAX
|
|
|
|
|
**
Central Okanagan
|
***
WREB Total MLS Sales
|
|
|
|
|
