Ottawa house prices post six per cent year-over-year gains in first quarter of 2012

Low mortgage rates, strong local economy and mild weather spark early market activity

OTTAWA, April 5, 2012 /CNW/ - The Royal LePage House Price Survey released today showed Ottawa has continued to post healthy year-over-year price appreciation for all housing types surveyed.

Prices for detached bungalows increased 6.2 per cent year-over-year to $385,667, while standard two-storey homes made a similar 6.1 per cent increase to $387,833. Standard condominiums rose 6.0 per cent to $257,667.

"Low mortgage rates combined with a strong local economy resulted in healthy price appreciation for the Ottawa housing market in the first quarter," said John Rogan, broker and manager of Royal LePage Performance Realty. "We also had unusually warm weather as the quarter drew to a close resulting in buyers and sellers coming into the market earlier than usual."

Rogan also noted that although first-time buyers are always an active group, there has been an increase in move-up buyers who are taking advantage of low rates to trade up.

"Although we are experiencing higher inventory than usual, we are also seeing more multiple offer situations," said Rogan. "Well-priced homes in desirable areas are getting attention."

Nationally, market activity in the first quarter of 2012 was unusually high resulting in tight inventories and strong price appreciation in most major cities. Buyers were attracted into the market by historically low mortgage rates and sellers brought listing inventory to market earlier than normal, encouraged by unseasonably warm weather.

In the first quarter, Canada's average standard two-storey homes rose 5.0 per cent year-over-year to $398,282, while detached bungalows increased 4.4 per cent to $356,306. Average prices for standard condominiums increased 2.2 per cent to $243,153.

"Our housing market is being pulled in opposite directions by opposing economic forces," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "On one hand, there is the rapidly strengthening U.S. economy, increasing Canadian consumer confidence and what can only be called a national mortgage sale encouraging activity and bidding up home prices. On the other, we have signs of over-shooting values and strained affordability in our largest cities. We are likely to see much more modest price appreciation as the year unfolds."

About the Royal LePage House Price Survey

The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast.  This release references an abbreviated version of the survey which highlights house price trends for the three most common types of housing in Canada in 90 communities across the country.  A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the first quarter 2012. A printable version of the first quarter 2012 survey will be available online on May 2, 2012.

Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. 

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of 14,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's & children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbolTSX:BRE.

For more information, visit www.royallepage.ca.

Teresa Cugliari
Fleishman-Hillard Canada
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[email protected] 

Tammy Gilmer
Director, Global Communications & Public Relations
Royal LePage Real Estate Services
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