The year end statistics are in and OREB states that the market was typical for Ottawa. Joanne Tibbles, President stated that "it epitomized Ottawa's real estate market: no dizzying highs, no dramatic lows, just slow and steady growth over the long term". This is very true of the Ottawa real estate market, slow, steady growth. The average price rose by 5.2% in 2011, slightly below the 7.7% increase in 2010 but ahead of the 4.9% increase in 2009. The number of sales in 2011 was 14,412 which was above the 5 year average of 14,326 and 1.7% more than the number of homes sold in 2010. (Full Report)
Ottawa is a great real estate market to invest in! We benefit from the steady but diverse employment from the federal government, high tech, service and tourism sectors. We have a population that are, on average, among the highest earners in the country and yet relative to other major cities (Vancouver, Toronto, Calgary, Edmonton) our real estate prices are still affordable. We also live in one of the best cities in the world. It is naturally beautiful, culturally diverse, and has all the amenities of a world capital but still maintains that small town feel.
Owning a home in Ottawa makes solid financial sense as does owning investment property. The average annual house price in Ottawa has declinced only 3 times since 1980 and the total of those 3 declines equals 5.2%. Compare that to your investment portfolio or RRSP's. The average house price in 1980 was $62,748 and today is $343,701. Combine this with the fact that Ottawa has a very low vacancy rate for rental properties and that with today's low interest rates allow many properties with minimal down payment to carry themselves Ottawa is a very secure market to invest in.
What will happen in 2012? I believe that the market will level off further. The world economy is in a mess and the federal government is talking about downsizing. These influencers will be offset by continued low interest rates and affordable housing options resulting in a balanced market. Some neighbourhoods and market sectors will continue to show strong growth while some neighbourhoods and market sectors will decline slightly but overall i believe the market will stay solid. My mentor, John DeVries, told me many years ago "don't wait to buy real estate, buy real estate and wait" it has been a quote I have used over the years and it has benefited myself, my family and my clients. Want more information about investing in Ottawa's real estate market call us at 613-867-9921 or e-mail me at firstname.lastname@example.org