Housing prices in Ottawa were up in the second quarter of the year, a trend expected to continue in the coming months, according to Royal LePage.
The real estate services firm released its quarterly housing price and market forecast survey on Tuesday. According to the report, the aggregate home price in Ottawa was $439,313 in the second quarter of 2018, up 3.3 per cent over the previous three months.
Bungalow sales were driving that growth with an increase of 7.6 per cent in median price. The median price of a two-storey home was up 2.6 per cent, while condo figures remained relatively flat.
Royal LePage expects that Ottawa home prices will continue to rise this quarter, projecting an increase of 2.2 per cent to $449,140.
The findings are in line with a recent report from RBC that pointed at Ottawa’s housing affordability beginning to erode, even as the local real estate market remains a relative bargain compared with home prices in the Greater Toronto Area and Vancouver.
The region’s rising housing prices are pushing first-time homebuyers into condos, according to a report last week from the Ottawa Real Estate Board. A lack of available inventory is driving up prices, that report stated.
Meanwhile, Ottawa-Gatineau homebuilders are rushing to refill supply levels in the region, with housing starts up 64 per cent year-over-year in June.
Royal LePage said softness in the Toronto housing market in Q2 contributed to a slower increase in housing prices nationally. The aggregate price of a home in Canada rose two per cent this past quarter to $613,968. The real estate firm expects that price to rise another 1.9 per cent this quarter.