ANNUAL REAL ESTATE REPORT: STITTSVILLE 2018

RECAP OF the 2018 Stittsville Market

The big story in Ottawa real estate for 2018 was the low inventory of homes offered for sale in many neighbourhoods, including Stittsville. With fewer homes to choose from, buyers found themselves competing with other buyers to purchase the best homes in their price bracket. And the result? An average price increase of 4.7% over 2017 and 12% over 2014 to reach $465,328. Over the course of 2018, 531 homes sold in Stittsville, 3.8% fewer than the number sold in 2017 yet well above the past 5-year average of 494 home sales per year.2 Detached homes remain the style of choice, with two detached homes selling for every row house. The average sale price of a detached home sold in Stittsville in 2018 was $515,766 compared to $367,297 for a row or semi-detached home. Let’s look at the MLS numbers:

CDOM: Cumulative days on market

KEY INDICATORS 

AFFORDABILITY

Ottawa households have one of the highest household income averages in Canada. If you see the graph on the following page you can see that prices are still relatively affordable for Ottawa buyers. This graph looks very different for buyers in cities like Vancouver and Toronto.

IMMIGRATION

If you Google best places to migrate to in Canada, Ottawa seems to be the number one choice. I am seeing many more immigrants choose Ottawa as their final destination. Toronto and Montreal are of course popular but when someone researches where to live in Canada,  Ottawa comes out close to number one in almost all categories.

The common misconception out there is that these immigrants do not have the funds to purchase real estate. That is not always the case. In many instances, it is their credit or lack thereof that may be holding them back. In any case, these immigrants are coming at a record pace and will likely be purchasing real estate in the future.

	MORTGAGE RULES AND INTEREST RATES Banks have been forced to stress test buyers at a full 2 percentage points higher than the interest rate of their mortgage. This can impact purchasing power by almost 20%.  I see the need for this but as house prices rise in major market centres there has been plenty of pushback. Interest rates have been slowly rising and this has put pressure on affordability for some buyers. If this trend continues it will have an impact on the market for sure. With the economy being more sluggish, the need for further increases may be curbed.
	LOCAL ECONOMY Ottawa has always been an underrated city in my view. We have a strong local economy with one of the highest median household income averages in Canada. Our unemployment rate is at historically low levels. It is a prototypical government town that has a growing technology sector and lots of solid, high paying professional jobs. It is only a matter of time before our prices surge and we become a global player in real estate. For a world-class capital city, our prices still might be a bargain. Time will tell!
	ELECTION YEAR Housing affordability has climbed up to be one of the top issues for millennials. This makes it an election issue. A recent poll found that 64% of millennial voters want the government to do something about climbing prices. We will see the politician’s respective platforms later this year. My prediction is that some of these platforms will have policies that will make it easier or more affordable for buyers to purchase. It could mean the return of 30-year amortizations. The stress tests might be eased or there could be a new policy altogether. Something to watch for sure.
	MILITARY AND TECHNOLOGY The DND move to the Nortel campus has been a major factor in the recent price appreciation in many of Ottawa’s west neighbourhoods. Interestingly, it is still a few years away from being fully operational as they phase employees into the new headquarters. In 2018 there was a major announcement that another prominent military operation headquarters will be built in close proximity within 10 years. The new building will house over 4500 employees. This will have an impact down the road on our real estate market. The location will be likely at Shirley’s Bay. Just down the street from DND.
	LIGHT RAIL LRT line will eventually make its way out to our suburbs. Still lots of discussion on when this will happen. Recently there was talk that Barrhaven would be first in line for light rail. I hope our new council will see that Stittsville should be the priority based on population growth. We had one report that projected the rail line to come right into Fairwinds at Huntmar/Maple Grove. This would be the best case and would be perfect for our community.

Months of Inventory by Month

Incredible that we have such a low inventory in Stittsville. Very challenging for buyers right now.

Check where this inventory level compares to previous years.

Number of Units Sold by the Month

All Homes Sold in Stittsville 2018

The red dots represent all the sold listings used for this Sittisville sales report.

MY PREDICTIONS FOR STITTSVILLE in 2019

I am very bullish on the future of real estate in Stittsville. All the economic indicators are there to support growth and price appreciation.  As a Stittsville resident, I can also speak of the wonderful community feel and vibe we have here. It is unique and should be celebrated and not taken for granted. It does not exist in other neighbourhoods in the city. I project we will remain in a seller’s market for most of the year. As the year progresses we should see more supply and eventually get back to more balanced conditions by the end of 2019. If you want to know the value of your home please feel free to get in touch.

YOUR HOME MIGHT BE WORTH MORE THAN YOU THINK!  If you are curious about the value of your home please fill in this form for a no-obligation market assessment.