A recent report shows a significant increase in housing prices in suburban Ottawa.
A report from housing app company HouseSigma, which recently launched in the Ottawa area, shows that Stittsville, Kanata and Orléans saw significant annual growth in 2021 compared to 2020. Stittsville saw an increase of 26.8% of the number of single and semi-detached houses. prices to $799,000 in 2021. Median prices in Kanata climbed 22.4% to $769,900 and Orleans saw a 19.8% increase to $658,900 in 2021.
“The residential real estate market in Canada has experienced explosive growth over the past 18 months, fueled by low interest rates, changing work-from-home preferences and needs, and increased investor activity,” says introduction to the report.
Despite a 7.2% price spike, Nepean has the lowest median price for a single-family home, according to the report, at $632,000. Nepean and Ottawa East have the most affordable median price for townhouses at $419,000, while the cheapest condos are in Ottawa South at $264,000 one-bedroom and $285,000 one-bedroom two-bedroom.
The most expensive single-family homes (single-family and semi-detached) are in Ottawa West, with a median price of $865,000. This is a 14.6% increase from the 2020 median of $755,000, the report said. One-bedroom condos in Kanata are the most expensive at $450,000, with downtown taking the top spot for two-bedroom condos at $579,000. The most expensive townhouses are in central Ottawa at $680,000.
“The Ottawa market was very strong in 2021 and January 2022 data shows significant year-over-year price inflation,” the report concludes, adding that while single-detached homes remain the most popular, the condominium market remains solid.
“The data in this report shows very strong growth in condominium product prices and with up to four rate hikes by the Bank of Canada potentially in the cards for 2022, and the potential for government policy changes aimed at further cooling the market, such as a tax on speculators, new stress test rules, or a ban on foreign buyers, there could be volatility in the market, and there could be less mortgage funds available, which would keep more buyers in the condominium market.
In March 2022, the average price of a home in Ottawa topped $850,000, according to the Ottawa Real Estate Board, up 13% from a year ago.
OTTAWA’S TOP 10 REGIONS BASED ON ANNUAL GROWTH
- Stittsville: 26.8% (median price $799,000)
- Kanata: 22.4% (median price $769,900)
- Orleans: 19.8% (median price $658,900)
- Ottawa South: 16.7% (median price $699,900)
- Barrhaven: 16.7% (median price $699,900)
- Ottawa West: 14.6% (median price $864,900)
- Downtown Ottawa West: 14.0% (median price $797,000)
- Ottawa East: 12.0% (median price $699,900)
- Nepean: 7.6% (median price $632,450)
- Central Ottawa: 1.2% (median price $860,000)
A map showing the 10 neighborhoods in Ottawa assessed by HouseSigma and their rankings in annual growth in 2021. (housesigma.com)