Kristin Goff, The Ottawa Citizen - Friday, January 06, 2006

Sales of existing homes reached the second highest level ever in Ottawa last year, but prices rose only modestly.

Sales of 619 houses and condominiums in December pushed the year's total to 13,099 -- only 53 sales shy of 2004's record sales, according to the Ottawa Real Estate Board.

The average sale price rose 3.8 per cent to $244,531 for all types of residential units, including condominiums. That was only half the price increase of 2004 and the smallest overall gain in eight years.

One major difference in the market was an increase in the number of listings, which gave potential buyers more choice and more clout in negotiating deals.

Still, the market remained solid enough to produce an increase in overall values, said Ron Levine, the newly elected president of the Ottawa Real Estate Board.

As of the end of 2005, there were about 2,860 active listings for houses on the market, an increase of nearly 23 per cent from the previous year, he said.

The balanced market conditions that characterized last year are expected to continue in 2006, said Christian Douchant, senior market analyst in Ottawa for Canada Mortgage and Housing Corp.

He predicts sales will decline by a modest three per cent from last year's level and prices will increase by about three per cent, or slightly ahead of inflation.

The brunt of a slowdown in housing activity in 2005 fell on the new home market, where the number of housing starts in Ottawa tumbled by more than 30 per cent through November.