As home prices rise year after year, condos have become an affordable option for many first-time home buyers in the Ottawa area. According to a recent report by CBC, condo sales have spiked over the last year in major Canadian cities.

Affordability, lifestyle, low-maintenance, and investment opportunities are all factors in this rapid growth of condo living. Other factors driving the condo market include urban redevelopment that favors intensification over urban sprawl and empty nesters seeking low-maintenance retirement properties.

According to Ottawa MLS statistics from January 2010 to September 2010, condominium sales have surged 11.9% since last year. The majority of these condos were sold between $175,000 and $199,999. In this same price range, there are presently 569 sales from the start of the year compared to 554 from last year.

The overall sales of condominiums as well as residential real estate in Ottawa are expected to level off as the market appears to be stabilizing from the spring seller’s market. While some properties are still getting multiple offers (possibly due to pricing strategies), most are on the market for a longer period of time before they receive any offers.

This could be attributed to the newly-introduced HST (Harmonized Sales Tax) in Ontario in which many people hold great misconceptions. While the new tax is applicable to all services and products, it does not apply to resale homes or new builder homes under $400,000. The HST is simply included in the purchase price of these properties. Any newly-constructed home over $400,000 is subject to the additional 13% tax.

Even with these factors affecting the local real estate market, many buyers are still stacking up to buy new and resale condos in the Ottawa area. A great piece of advice for those who are interested in buying a condominium is to hold on to it if you decide to move to a larger home and rent it out for a source of passive income. Many real estate investors see the value in condos as mortgage rates are still low and renters are abundant for these types of residences. Resale values for these homes can also be quite high, particularly in new builds.

At the time of this writing, there were over 800 condos for sale in the Ottawa area (not counting new builds). So if you’re currently renting, have some savings, and a good credit rating, maybe it’s time to think about buying a condo in Ottawa as they are extremely affordable. Wouldn’t you want to pay off your own mortgage rather than someone else’s?