Upward market pressures will affect first-time buyers the worst, however
Ottawa-Gatineau home sales and average prices exhibited strong growth last year, a trend that seems poised to remain through much of 2020.
CREA data showed that the national sales-to-new-listing ratio (SNLR) enjoyed notable growth over the last year, with the largest gains posted by urban markets in the eastern half of the country.
Strong inbound migration along with scarce supply impelled home price and sales growth in the region. Bidding wars are also becoming the new normal, especially in the capital.
“Each quarter, the properties have increased in value,” Orléans-based agent Angelo Toscano told CBC News.
“We started the year fairly stable. We were looking at about three buyers for each property. Now we have eight buyers per property.”
As for Gatineau, CMHC data pointed to accelerated growth in demand, with 2019 representing the fifth consecutive year of sales increases in the city.
And this year is set to maintain these trends, with price growth in the 10% to 12% range, according to CMHC spokesperson Lukas Jasmin-Tucci.
While a boon for sellers, however, the situation will prove difficult for first-time buyers. Many members of this cohort are forced to continue renting to avoid the inflamed market competition and the steadily growing costs of ownership, Jasmin-Tucci added.
