Ottawa in real estate seller’s market; seeing ‘Toronto-like effect,’ Royal LePage says

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A shortage of listings and a surge in demand in putting upwards pressure on home prices in Ottawa, Royal LePage said Thursday.

The real estate firm said the aggregate price of a home in Canada’s capital in the second quarter of 2017 rose 8.2 per cent year-over-year to $432,864.

“Inventory levels across Ottawa have radically changed of late, reaching three-year lows and dropping by more than 20 per cent when compared to the same time last year,” said Hanna Browne, an Ottawa broker at Royal LePage Team Realty. “In recent months, we have a seen a Toronto-like effect with many buyers and not enough listings to go around. This dynamic is putting a lot of pressure on the region’s home prices, in what is now decidedly a seller’s market.”

Looking ahead, Royal LePage said it expects demand to continue increasing and forecasts that prices will rise six per cent year-over-year to $439,332.

The report comes a week after the Ottawa Real Estate Board said the sector’s “stellar” year continued in June, with sales up 8.9 per cent over the same month last year.