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Ottawa Quick Highlights:


Like other Canadian cities in the previous 6 years, Ottawa has experienced a boom in the housing market.
The Ottawa housing market has set higher records for sales of houses and the prices for new and old homes has increased
The average house price, including condominiums, was $273,441
The housing average in the National Capital Region has only increased 3.3% for re-sold and new homes this past year, compared to 42.4% in Calgary
Demand for multi-family housing will increase in 2008 , visible with mass construction of new subdivisions in Barrhaven, Kanata, Orleans and Nepean
Prices will continue to increase by 2.1% for new homes this year
House sales in Ottawa are expected to blow away last year’s record of 13,783 sales in 2007
The average Ottawa resident spends 30.8% of their income on housing. For mortgage approval, financial institutions commonly allow 32% of income
  Expert’s comment
“The resale housing market picked up significantly in February, despite the weather: homes that were sold last month spent an average of just 36 days on the market,” said Past President Diane Hatfield. “All in all, we see these numbers as part of a trend towards sales figures similar to 2006’s, as predicted by the Canadian Real Estate Association, and that was a record-breaking year beaten only by 2007,” Hatfield added.

The average price of residential properties, including condominiums, sold in February in the Ottawa area was $282,571, an increase of 6.7 per cent over February 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.

 

ADDITIONAL MARKET DRIVING FORCES AND HOUSING TRENDS
There are additional factors that contribute to the housing market such as new mortgage programs, baby boomers retiring, new immigrants and changes in lifestyles.

 

Another factor is that the Canadian Mortgage Housing Corporation (CMHC) has made it easy for home buyers to purchase houses through its “FirstLine Mortgages” pilot program by extending amortization from 25 to 40 years. Several lenders participating in this pilot program have also offered zero down payment loans, allowing more families to buy homes and afford payments, despite the increase on the total interest due on the loan over its lifetime. 
  There are demographic trends such as baby boomers downsizing to smaller places, or empty nesters helping their children purchase their homes. New immigrants have gotten jobs in Ottawa and this has enabled them to buy homes in any of the suburbs of Ottawa or downtown. Lifestyle or environmental home buyers have influenced the demand for new homes in the suburbs of Kanata, Barrhaven, Nepean and Orleans by looking for open concept, energy efficient and environmental homes.
  Housing across Canada
  A strong economy, high employment, low interest rates, population trends and special mortgage programs (longer amortization) have encouraged Canadians to purchase homes. Experts call this a “frenzied housing market” that everyone wants to be a part of. Consequently, many provinces are setting new housing records for sales and houses are becoming more expensive than ever before. According to the Canadian Real Estate Association (CREA), the national activity rose 3.6% compared to last year.

As more Canadians want to purchase homes and prices continue to increase, especially for single homes, new home buyers have begun considering multi-house options such as town homes, row houses and condominiums.
  What the Experts Think... Canada vs. U.S. housing market
  “Residential real estate markets across Canada remain healthy and active, and it is important to note that the negative factors weighing on U.S. home sales are largely absent in Canada,” said CREA President Ann Bosley.
“The trend in new listings shows there is no panic selling in Canada's housing market,” said CREA President Ann Bosley. “It is important Canadians understand the differences between the Canadian and U.S. housing markets, and their local REALTOR® can provide that information.”
CREA's MLS® revised market forecast for 2008 indicates a gradual slowdown in the re-sale housing market nationally, but MLS® sales volume will remain at near record levels. “The MLS® residential average price is forecast to set new records in all provinces next year, but those increases will become smaller as the resale housing market becomes more balanced in 2008,” Bosley added.
  National Quick Highlights:
  In 2007, Canada’s home prices are up by 13.1% (new and resold houses)
According to the Canadian Real Estate Association and based on the MLS in 24 cities across Canada, the average house price hit $335,180 in June 2007 and average prices broke records in Victoria, Regina, Saskatoon, Winnipeg, Kitchener, Ottawa, Montreal and Halifax
According to CMHC, the highest average prices were in the greater Vancouver area ($564,702), Calgary ($427,205) and Toronto ($381,963)
The lowest average price record was in Quebec's Mauricie region, including Trois-Rivières ($113,821)
Despite higher interest rates, housing sales broke records in the middle of the year
  Canadian Real Estate Market
 
It is composed of different organizations that administrate, supervise and operate at the national, provincial and local level.

The Canadian Real Estate Association (CREA) represents the federal level of real estate Brokers/Agents and sales people across Canada and regulates and enforces legislations in the real estate industry. CREA owns REALTOR® and the MLS in Canada. For more information, visit www.crea.ca.

The Canada Mortgage Housing Corporation (CMHC) is a national housing agency that tracks information about the housing industry in Canada (local, provincial, regional and national). For more information, visit www.cmhc-schl.gc.ca.

REALTOR® can only be used in Canada by members of The Canadian Real Estate Association (CREA) who accept and respect a strict Code of Ethics, and are expected to maintain a high level of knowledge about the process of buying and selling real estate