Let's get straight to the point. You know the market is hot, but let's be honest, who knew it would continue to break records for this long. 2021 has kicked off with a frenzy of
OTTAWA REAL ESTATE - HOTTER THAN EVER IN 2021
Dated: February 12 2021
Views: 22
Let's get straight to the point. You know the market is hot, but let's be honest, who knew it would continue to break records for this long. 2021 has kicked off with a frenzy of buyers fighting tooth & nail to get their hands on anything decent and remotely affordable. And the prices continue to climb even higher...
Comparing this January, 2021, to January a year ago, sales volume is WAY up. The Ottawa Real Estate Board sold 21% more freehold homes, and 31% more condos this January. Needless to say, 2021 has gone from 0 to 100 real quick.
The issue continues to be a shortage of inventory for this back-log of buyers. We did have quite a few listings hit the market this past month, but they sell within a week. As of now, Ottawa has 43% fewer properties on the market compared to this time last year.
Average home prices are up substantially, and I don't expect that to slow down right away. Given the current lockdown Ontario is going through, there has been quite a number of jobs lost, and the expectation is that things will start to cool down soon (very hard to pinpoint when). I expect high-rise condos will feel it first, followed by suburban townhomes.
Of all Canadian cities, Ottawa is one of the most resilient with very steady & solid employment (government, tech, etc). Don't expect a crash to hit this city, but don't expect things to continue skyrocketing at the current pace. Based on simple economics, it will have to balance out at some point. The federal govt has certainly been printing a lot of money recently, but household incomes just aren't increasing on par with real estate prices.
A few of my predictions for what to expect in the not-so-distant future:
- the rental market will continue to be slower. There are a staggering number of rental units under construction currently in this city, and this lockdown has slowed demand for rentals already.
- interest rates will remain low, contributing to increased home values
- country homes will continue to boom (due to many jobs going 'remote')
- smaller towns outside of Ottawa will stay in high-demand
- anything affordable will continue to be red hot
- homes with secondary rental units will increase in popularity
- the value of land will continue to escalate
If you have questions about any properties, and would like to know what's happening in your neighborhood, please don't hesitate to ask. Understanding market data is more important than ever when making a decision.
CHRIS STEEVES
Sales Representative. Residential & Commercial.
eXp Realty
343 Preston St, 11th flr, Ottawa, K1S 1N4
Cel: 613 262 1697
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Chris Steeves
Top producing agent in Ottawa for over 14 years. Chris is always happy to help you achieve your real estate goals. Offering expert assistance with buying, selling, and leasing in all areas....
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