Trends in the Ottawa Real Estate Market

The Ottawa Real Estate Board (ORBE) is an independent non-profit organization of full-time salespeople and brokers in the Ottawa area. OREB was originally formed in 1919 and renewed in 1920. In 1980, the name was change to ‘oreal estate board of town’ and later again to’Ottawa real estate board’.

Many people are confused between ottawa real estate board and the town of ottawa real estate board. They think the term ‘ottawa real estate board’ refers to all of the members of the board and not just ottawa real estate. The reality is that the town of ottawa is a separate entity from the entire board. All the members of the town of ottawa real estate can be considered as one entity. OREB is merely the name of the board. The realty companies or brokers are the ones who operate under the umbrella of ottawa real estate board.

There are some major highlights of the real estate market in Ottawa. On the one hand there is the residential properties which are appreciating at a very fast pace. The real estate market in Ottawa has experienced a paradigm shift, with values shooting up to over 50 per cent year on year. This means that the housing prices in Ottawa are now very attractive. Moreover, the ongoing large influx of tourists from around the country and the rest of the world has also added much to the overall dynamic of the real estate market.

Another highlight of the real estate market in Ottawa is the high number of resale market units. In the last year there was a significant increase in the number of resale unit sales. According to experts the resale market in Ottawa is expected to experience a boost in the coming years due to various factors such as low interest rates, strong economy and the incoming private and government stimulus package. Moreover, according to stats it is interesting to note that the number of foreign investors into the city has been increasing the last few years. Given these factors the resale market in Ottawa should continue to grow at a good rate.

With regard to the commercial property, it is interesting to note that in the last year there was a significant decline in the average prices. Despite this decline the average prices have still remained higher compared to those years ago. The decline in the prices resulted to a significant dip in the net lease sales. The figures for the same period of time prior to the recession were much higher. There are many reasons attributed to the recent decrease in the residential and commercial property prices including a lack of supply, tightening regulations and a rapidly aging population.

The average price of detached houses was approximately thirty one thousand dollars and that for detached apartments was nearly forty thousand dollars. It is important to note that the prices were higher or lower depending on the location of the properties and the condition it was in last year. The average price of the houses has declined by approximately seven thousand dollars from the year before. This is according to figures obtained from theOttawa Real Estate Information Centre and it is expected that the numbers are going to continue to decline throughout the upcoming year.

The average sale price of detached houses decreased by three thousand dollars in July from the year before, while it increased by eleven thousand dollars in August. The decrease is primarily because there was an increase in the number of new residential and commercial buildings being built in the city. The demand in July was considerably greater than the supply, which led to higher prices. Also, in August, three new subdivisions were added to the city’s growth map, which adds more density to the region. There are also over a hundred planned or potential new developments currently being planned or already in process in the Ottawa real estate market.

This decline is expected to continue throughout the upcoming year. The number of resale units available and the ongoing development projects will keep the demand for property high. In addition, an increase in the number of tenant-based leasing contracts will continue to contribute to the increase in July’s revenues. The low demand from the July figures is being counteracted by the introduction of six new rental properties, which are expected to start opening this month. This increase is being viewed by analysts as being supportive of the uptrend in the Ottawa real estate market.