Ottawa’s red-hot housing market is expected to cool off slightly in 2022 despite continued low levels of inventory, a new report from a Canadian real estate firm says.
The average home price in the capital is forecast to rise five per cent next year to $679,915, Re/Max said this week in its annual Canadian housing market outlook.
The report said there has been less than a two-month supply of housing inventory in Ottawa since February 2019, creating a “seller’s market” that’s expected to continue in 2022.
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Re/Max predicts the city’s housing inventory will grow slightly in the year ahead but says “low levels are expected to remain a concern.”
The average sale price of a home in Ottawa was $647,538 through the first 10 months of 2021, the report said. That’s a 22 per cent increase from last year’s average price of $529,649 and among the highest year-over-year jumps of any major Canadian city surveyed.
Re/Max noted the Ottawa region saw a large influx of “move-over buyers” from Ontario and beyond this year, putting more pressure on an already tight market.
Earlier this month, the Ottawa Real Estate Board also sounded the alarm over the city’s housing supply crunch. Board president Debra Wright said the 1,960 new listings in October were “simply not enough” to meet growing demand.
Re/Max says the housing market is expected to “remain steady” throughout the province in 2022, adding “more immigration could weigh on supply levels and prices” in larger centres such as Ottawa and Toronto.