Housing prices in Ottawa will rise five per cent in 2022, Remax estimates

The Ottawa housing market is expected to remain a sellers’ market in the New Year as supply levels for the housing market remain a concern.

The Remax Housing Market Outlook estimates Ottawa home prices will rise five percent to $ 679,915 in 2022.

“Inventory levels have been below two months since February 2019, resulting in a sellers’ market. This is expected to continue in 2022, ”reads the report on the outlook for the Canadian housing market in 2022.

“Supply is likely to increase slightly in 2022, but low levels are likely to remain a cause for concern.”

The report said house prices in Ottawa rose 22 percent to $ 647,538 in 2021. That’s an increase of $ 529,649 in 2020.

“There were many Ontario and non-provincial buyers in the region in 2021,” said Remax.

The Ottawa Real Estate Board previously warned that the offering is a major issue for the Ottawa real estate market. There were 1,960 new additions in October, just below the five-year average.

“It’s just not enough. Inventories remain at one month for residential property and 1.2 months for condominium, ”said Debra Write, president of the Ottawa Real Estate Board, in a statement Nov. 3. “The only way to find balance in Ottawa’s market is to grow the housing stock exponentially.”

In Kingston, the average new home price is projected to increase 10 percent in 2022 to an average of $ 639,141. Remax says out-of-town buyers from “larger, more expensive regions” will drive demand in 2022.

“Low housing supply coupled with the possibility of rising interest rates could slow activity and price growth in 2022,” said the Canadian Housing Market Outlook 2022 report for Kingston, stating that sales are projected to decline 5 percent in 2022 .

The average price of a new home in Kingston rose 23 percent to $ 581,037 in 2021.

Across Canada, Remax expects home prices to rise 9.2 percent in 2022.

Remax’s real estate market outlook is that market activity across Ontario will remain constant in 2022, “with average price growth continuing, albeit to widely varying degrees”.

Remax says in larger markets like Ottawa, Brampton, Toronto and Mississauga, “There is a possibility that more immigration could weigh on supply and prices.”