Friday, April 07, 2006

Ottawa Housing Market Solid in 2005

Ottawa's housing market experienced a slight slowdown in both activity and the pace of price appreciation during the final three months of 2005.

A market survey by Royal LePage Real Estate Services reveals 2005 was a good year for condo owners, with average prices rising five per cent to $174,771. The price of a detached bungalow rose 4.1 per cent to $274,000 and a standard 2-storey home rose 3.6 per cent to $269,714.

"Ottawa's housing market continued to move towards balanced conditions; however, a healthy economy continues to draw buyers into the market, maintaining buoyant activity levels," said Pierre de Varennes, owner of Royal LePage Performance Realty. "The gradual slowdown in the market has resulted in less pressure on buyers, as increased inventory levels have made it essential for properties to be priced fairly, and listing periods have increased to the area of 60 days."

Homes in the city core remain popular, with neighbourhoods such as Westboro, the Glebe and the Golden Triangle attracting plenty of buyer interest. Homes on the periphery of the city have seen a slight softening of prices as inventory increases and buyers have a greater selection of homes to choose from.

"The lead-up to the federal election has made the market in Ottawa a little more pensive, as potential buyers and sellers wait to see the outcome before entering the market," says Mr. de Varennes. "However, activity levels should return to normal following the election."

Increases ranged from 0.4 per cent for a standard two-storey property in Nepean to 7.5 per cent for a standard condo in east Ottawa.


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