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It seems very little can get in the way of the housing market’s momentum — not higher interest rates, or record prices. Even last month’s bitter cold and “Freedom Convoy” appeared to have little impact on buyers’ enthusiasm for residential properties in the Ottawa area.
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Nearly 1,100 residences changed hands in February for an average of $837,500 — the first time the resale market statistic has crossed the $800,000 threshold, according to data compiled by the Ottawa Real Estate Board.
The average price for residences in the Ottawa area includes several hundred sales in Valley towns from west of Arnprior to east of Embrun. Excluding these produces an average price of $900,000 for greater Ottawa — which stretches from Fitzroy Harbour to just east of Orlans. That’s a year-over-year gain of 14.6 per cent.
Residential properties in the Valley sold in February for an average of $657,000 — up 21 per cent.
One factor that might have crimped the market for much of February was the occupation of Parliament Hill and area by the “Freedom Convoy.” Yet, if there was a negative influence, it was minor, at least as far as house sales went. The districts most directly affected by blocked traffic, verbal abuse and noise were Lower Town-Sandy Hill and Centretown. Each area reported four sales — about the same as in February 2021. Purchase prices averaged $809,000 and $867,000 — up 1 per cent and 12 per cent, respectively.
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Elsewhere, the multi-year trend that has seen rural properties accelerate in value, continued with some force.
Two of the four districts that witnessed price hikes in excess of 40 per cent were deep in the Valley. In Smiths Falls, the global headquarters for cannabis producer Canopy Growth Corp., residential properties surged 46 per cent in value to $568,000 — based on 34 sales.
Hawkesbury, which traditionally features among the lowest residential prices, saw average sales last month reach nearly $480,000 — a rise of 40 per cent compared to February 2021.
Within the city of Ottawa, the biggest year-over-year gains occurred in the outlying districts of Carp and Dunrobin where resales averaged $1.1 million (up 52 per cent) and $1.0 million (a rise of 47 per cent) respectively. While big numbers have been common throughout the pandemic, they still take some getting used to. Several years ago, Rockcliffe Park and maybe just one or two other real estate districts could claim million-dollar status.
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Last month, 15 districts besides Rockcliffe Park, about one-third of all districts, were part of this club.
Fortunately for those still trying to get into this market, this high-end group accounted for just 129 sales in combined sales, about 12 per cent of the total for Ottawa.
Barrhaven on its own nearly matched the volume, with 116 sales last month, averaging $855,500 for a gain of 17.5 per cent. Kanata was nearly as active with 108 sales that cleared at an average price of $875,500 — up 13 per cent from February 2021.
Prices for condominiums also jumped in February, reaching a record $467,000 for a gain of nearly 15 per cent.
Demand remains high for residential and condo properties alike, thanks to unusually low interest rates (notwithstanding this week’s quarter-point hike in the trend-setting bank rate), and exceptionally tight inventories. While the number of residential listings was 10 per cent higher in February compared to a year ago, condo listings slipped 20 per cent.
Listings overall remain 67 per cent below where they were in February 2019 — before the pandemic, and when the city’s buyers and sellers formed a market that could be called “normal.”