The Ottawa real estate market has remained hot amidst the uncertain times of the COVID-19 pandemic. The nation’s capital has surprised some as it holds strong among many of Canada’s world-class cities. Ottawa sets itself apart from the rest of the competitive Ontario housing market and the rest of the country because it’s a government town with significant job stability. The Canadian federal government is a primary employer in Ottawa as well as the RCMP and the Department of National Defence which makes for income security for many of its residents. Job stability combined with historically low-interest rates has given Ottawa residents steady buying power. We are also seeing a shift in the dynamics of buying behavior as buying preferences in Ottawa are moving towards more spacious properties to accommodate things like home gyms and home offices while many people are working remotely for the foreseeable future.
“We are heading into the colder months, the second wave of the pandemic is upon us, and yet Ottawa’s resale market continues to hold steady,” remarked Ottawa Real Estate Board President Deb Burgoyne.
For sellers, several factors have been in place putting them in a position to capitalize on the current market. An inventory shortage has persisted for several months, meaning the demand for houses has been higher than the number of houses for sale on the market. The low inventory levels matched with the significant demand and low borrowing costs associated with mortgages have driven up average prices for homes selling in Ottawa. There is also a growth in the number of people moving to Ottawa from more pricey cities in Canada like Toronto and Vancouver which contributes to rising prices in Ottawa.
Year-Over-Year Sales and Prices
Before the COVID-19 virus, Ottawa’s real estate market was already experiencing momentum with a 9.5% annual increase in new house prices in February of 2020. As the global pandemic persisted, a vast array of industries throughout Canada have been affected leading many to predict that new housing prices would fall, yet, this has not been the case.
In October of this year, members of the Ottawa Real Estate Board (OREB) sold 2,146 properties compared to the 1,604 properties sold in October of 2019 representing a year-over-year increase of 34%. Of those 2,146 properties sold this October, 1,665 were residential class and 481 were condominiums. Residential property sales increased 38% year-over-year whereas condominium sales increased 22% year-over-year. For residential properties, the average sale price this October was $603,253 increasing 25% from last October and the average sale price for condominiums this October was $368,936 increasing 16% from last year.
How Home Buying and Selling Differs During COVID-19
Typically in the past, a lot of the negotiating, planning, and signing has been done with real estate agents in person. Clients and agents would meet, often at the agent’s office, and discuss prices, strategies, and a path forward towards the desired outcome for the client. During the pandemic, much of this is being done electronically. The virtual technology solutions and innovation on the part of real estate agents during these different times have allowed for people to execute one of the larger transactions of their life safely, comfortably, and very successfully. Having an agent fully support and guide you couldn’t be more important during a time where multiple offers come to the table, home prices are high and both parties are very motivated. Experienced agents know how to help you determine how high your offer should be in order to be considered based on how many offers have been submitted. And when you’re selling, a good agent will help you recognize that the highest offer is not always the best and that conditions included in an offer can be as important to consider.
Though we can’t be sure what 2021 will have in store for the Ottawa real estate market, we do know that the current market is a busy one and that the Sylvain Bourgon team has stepped up to the challenge of supporting our clients during COVID-19. We have put in place all the health and safety measures required by Ottawa and the province of Ontario and we have all the innovation needed to keep you safe and comfortable when buying or selling your home.
If you are seeking advice on buying a home or selling a home in the Ottawa area, or have more questions for us, we are happy to provide you with helpful guidance and support. Email us at info@buyandsellottawa.ca or call us at 613-590-3036.