Ottawa Home Prices Expected to Continue to Rise
Last updated on May 11th, 2021 at 01:11 pm
That’s right, according to the article I was recently reading, home prices are expected to rise over the next several months. While this may make it more difficult for first-time home buyers to enter the market, it’s great news for home sellers wanting to get a great price for their property.
What To Expect In the Coming Months in Ottawa
Market analysts have been researching the market affordability of the Ottawa real estate market by calculating the median multiple.
This is calculated by dividing the average house price by the average annual household income (before tax). This indicator enables people to compare affordability between different regions, different currencies and even different years.
Economists generally agree that a median multiple of three or less suggests affordable housing. Meanwhile, anything higher than three is not considered affordable.
Here’s what the recent research revealed:
- Ottawa has a ranking of 3.5, or moderately unaffordable.
- Still, Ottawa actually has the lowest median multiple of any major city in Canada.
- The median for Canada as a whole is 3.6,
- And the median for Canadian cities with populations over one million is 4.7.
- Specifically, Montreal’s median multiple is 5.1; Toronto is 5.9; and Vancouver is 9.5.
- Vancouver’s median multiple is so high that it’s actually the second highest in the world behind only Hong Kong.
Experts say that there are many factors that contribute to rising home prices, including demand, location and the greater economy.
And although our major cities are considered more unaffordable than affordable by the median multiple scale, we’re actually a lot better off than most other developed countries. In fact, only the post housing crash United States and Ireland have lower median multiple scores, with 3.1 and 3.2 respectively.
Take a look:
- The United Kingdom (5.1)
- New Zealand (5.3)
- Australia (5.6)
Find Qualified Ottawa Home Buyers for Your Home
To really capitalize on the rising home prices without alienating would-be qualified buyers, it takes working with an experience real estate agent who can help you determine the true value of your home and then create an expert marketing plan for it!
That’s where we can help!
Contact us, Geoff and Bobbie McGowan, today to learn more about the kind of home selling services we offer to home owners just like you each and every day. We would love the opportunity to help you as you navigate the market in Ottawa!
Until next time,