Will there be enough housing in Ottawa to support the pressure of growth in our community?
Low interest rates and the lack of a clear presentation for the HST caused a “jack rabbit” start to the market in the first half of 2010. Now it is a matter of economics and the balance of supply vs demand. The second half of the year has actually been very good for real estate sales. Pricing has stabilized and the well listed homes are selling quickly. At certain price points there is a lack of inventory to go around.
What is causing the city of Ottawa to grow?
- Immigration - 71% of the population growth is attributed to new arrivals to Canada. The major destination cities for immigration are still Toronto and Vancouver. Ottawa is attractive because of its high quality jobs and education.
- Longevity factor - People are living longer. The mortality rate today in Canada is 77 years of age. Twenty years ago it was in the fifties. More and more families are planting routes and calling Ottawa home. They want to stay close to their children and family members.
- Cost of living – Ottawa’s average housing costs are still below the nation’s average.
- Quality of life - The city has all the big city attractions with the small town feel.
- Employment and Education – High paying jobs and a variety of secondary education. It is a cutting edge community of technology savvy and highly educated population. The income average in Ottawa is the highest in the country.
Our predictions are that 2011 will be another great year for real estate in Ottawa. Pricing is expected to increase slightly due to the lack of housing inventory.