With Vancouver and Toronto real estate markets often in the news, it’s hard not to think we’re all on some real estate roller coaster ride. Here’s the thing: we’re not.
Below you can see the average selling price of residential properties in Ottawa, since 1956. You’ll note that real estate in Ottawa follows a steady and stable general trend of growth. In almost 60 years, we’ve seen only 5 years where there was a year-over-year modest decline in average selling price: 1961 (-4.3%), 1962 (-0.7%), 1994 (-0.4%), 1995 (-2.9%), and 1996 (-1.9%). Interestingly enough, in that same time frame, we’ve had 10 years where year-over-year price growth was in the double digits, most recently 2001 (10.1%) and 2002 (14%).
Realty/Reality Check Fact:
The average annual growth rate in Ottawa residential real estate prices over the last 60 years is 6.0%!
While you must bear in mind that the value of a dollar from the 1950s, and through the high inflationary periods of the 1970s and 1980s, needs to be adjusted so we’re comparing apples to apples. The Housing Price Index (HPI) is an accepted method of comparing similar types of residences in similar areas of Ottawa over time. If you’d like to know the HPI for your home type in your neighbourhood, just let Anneke know!