Real estate market hits new heights in Ottawa-Gatineau

The number of house sales andpropertypricessoared inthe capitallast year and aren't showing any signs of slowing down.

The trend looks set to continue in 2020, butcomes at a time when the region is grappling with a lack of affordable housing.

"Each quarter, the properties have increased in value," said Angelo Toscano, areal estate agent based in Orlans.

One of the biggest factors driving theincrease ismarket demand.

"We started the year fairly stable. We were looking at about three buyers for each property. Now we have eight buyers per property," said Toscano.

This demand often results in bidding wars between buyers, with the winneroften paying above the list price.

A similar trend is also happening in Gatineau, Que.,according to the Canadian Mortgage and Housing Corporation (CMHC).

Last yearwas the fifth straight year thatsales grew in the city, according to Lukas Jasmin-Tucci, a spokesperson for the corporation.

The forecast for 2020 issimilar, with pricesexpected to increase 10 to 12 per cent, he said.

That's putting strain on first-time home buyers who can find themselvespriced out of the market.

Young people areless likely to enter the real estate market these days, according to the CMHC. Instead, many of them continue renting.

As real estate continues to become more expensive, this trendwill continue, said Jasmin-Tucci.

Affordable housing shortage

While the real estate market is going strong, the region is also struggling with a lack of affordable housing.

Many organizations have been sounding the alarm for months. The CMHCestimates that Ottawa's rental housing vacancy rate was at 1.6 per cent in 2018, the last year for which there is data.

Across the Ottawa River, the vacancy rate in Gatineausits at 1.2 per cent, the lowest in the province.

The Quebec government has put in place an emergency assistance program to help people who are homeless, as well as to assist cities that are coping witha housing shortage.

While the price of homes in the region continues to grow, advocacy groups persist in theirpush for investments in affordable housing.

There are approximately 10,000 people on the waiting list for social housing in Ottawa,according to data from the City of Ottawa.