The price premium for COVID-19 is still there for homes in the Ottawa Valley

The result: House prices are rising significantly faster than increases in wages and salaries, making it difficult for first-time buyers to save enough up for payouts.

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While increases in Ottawa house prices have been moderate since the beginning of summer, it is cold comfort for anyone trying to enter the market. The reason: The recent price increases come on top of a much higher base.

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Consider what happened in October when more than 1,200 homes changed hands to an average of $ 717,600, according to data released Wednesday by the Ottawa Real Estate Board. That was a 19 percent increase from a year earlier, when resale values ‚Äč‚Äčaveraged $ 603,000. You need two years left to find conditions that are approaching normal. In October 2019, residential properties across Ottawa were sold for an average of $ 483,000, and prices rose about eight percent per year.

Of course, the end of 2019 was when the Ottawa market began to catch up with Toronto and Vancouver. However, the bulk of house price increases since then were triggered by the catalysts behind COVID-19 and historically low interest rates. Another contributing factor has been the dramatic decline in available postings: These were fewer than 1,100 at the end of October, a decrease of less than 10 percent year-over-year, but 55 percent fewer compared to October 31, 2019.

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The result: House prices are rising significantly faster than increases in wages and salaries, making it difficult for first-time buyers to save enough up for payouts.

One option has been to buy property outside the city. The average resale price in the Ottawa Valley – from Arnprior to Cornwall and south to Kemptville – was $ 548,000 in October compared to $ 773,000 in Ottawa (which stretches from Carp to Cumberland). During much of the pandemic, however, house prices have risen relatively faster in the country. In October, the average price increase for the 321 valley houses sold was 24 percent compared to a 17 percent increase in the city.

The biggest gains in the valley last month were recorded in Kemptville South, where nine homes were bought for an average of $ 829,000, an increase of 81 percent compared to the same month in 2020. Prices also escalated sharply in Almonte ($ 723,000 for a gain of 48 percent ) and the Mississippi Mills ($ 734,000, an increase of 36 percent).

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In Ottawa, the Billings Bridge-Riverside district recorded an oversized year-on-year gain of 80 percent to reach an average of nearly $ 1.1 million. This was a statistical anomaly that reflected the sale of a few multi-million dollar homes in the suburb of Revelstoke-Mooney’s Bay. Excluding these sales produced an average of $ 785,000, about the same as 12 months earlier.

Many of the biggest price increases in the city took place in remote districts, including: Dunrobin ($ 980,000, up 70 percent year over year), Greely ($ 1.1 million, up 28 percent) and Carp ($ 1 million) , a gain of 25 per cent.

In the center of the center were the most significant price increases in Lower Town-Sandy Hill ($ 857,000, an increase of 36 percent).

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About one in four districts reported small declines in average resale prices. These included some of the most expensive enclaves: Westboro-Hampton Park ($ 859,000, down 13 percent year over year); Dow’s Lake-Civic Hospital ($ 861,000, down three percent); Glebe-Ottawa East ($ 951,000, down one percent); and Ottawa West-Tunney’s Pasture ($ 1 million, down one percent). Maybe there is some price resistance on the way.

A source of cheaper housing is the market for condominiums, which has produced relatively stable prices throughout 2021. In October, the price of a condominium averaged $ 405,000, an increase of 9.6 percent compared to October 2020. Prices ranged from $ 380,000 in the southern part of the city (up 12 percent year over year) to $ 508,000 in the center (an increase of nearly seven percent).

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