Home prices in Ottawa continued their strong climb in the last three months of 2021, according to data from Royal LePage.
The city’s overall home price jumped 17.2% year-on-year in the fourth quarter of last year, hitting $739,700, the real estate company said in its latest price survey on Friday.
The median price of a single-family detached home in the capital rose 20% year-over-year to $876,600 in the quarter, while condominium prices rose 11.5% to $417,700.
John Rogan, official broker at Royal LePage Performance Realty, said he expects the looming threat of interest rate hikes to fuel continued housing demand through the first half of 2022.
“Although we are seeing fewer multiple bid scenarios than at the start of the pandemic, competition remains tight due to a shortage of supply,” he said in a statement.
Rogan said the sparkling market is driven by millennial households with double incomes who can afford to pay rising prices.
However, he warned that it is becoming increasingly difficult for many potential buyers to cobble together the necessary down payments.
“With inventories at historic lows, navigating the housing market has become increasingly difficult for buyers and sellers,” Rogan said. “If this level of demand continues without a significant increase in supply, Ottawa will remain in a firm seller’s market through 2022.”
Nationally, Royal LePage said overall home prices rose 17.1% year-over-year in the fourth quarter, explaining that “strong demand from buyers continues to outstrip supply in almost every market from coast to coast”.
The company predicted late last year that the overall home price in Ottawa would top $806,000 by the end of 2022, a 9% jump from a year earlier.