Looking back at the housing market in February 2021

                                  

THE NUMBERS: 

FEBRUARY AVG. SALE PRICES


Residential-class: $717,914

Condominium: $407,671


*Important to note that varied pricing and conditions in different neighbourhoods affect average sale prices 


Looking back at the February housing market 


March may have come in like a lion, but the market in February was as fierce as the lion itself. The total sales in the second month of 2021 exceeded the five-year average for total unit sales in February. More specifically, there were 1028 sales in the residential-property class, which is up 24% from exactly a year ago, and 362 in the condominium-property category, up 19%. 


Being only two months in, it’s already clear that 2021 is keeping us on our toes. Despite the significantly lower inventory compared to last year—we’re talking 46% less—February 2021 still managed to have a record number of sales, which could only mean one thing: properties are selling so rapidly they don’t even have the chance to think about getting comfy on the market. The numbers back it up, with residential homes spending only a swift 14 Days on Market (DOM), compared to 30 in February 2020. As Debra Wright, President of the Ottawa Real Estate Board puts it, “resale properties are virtually flying off the shelves.” With the residential category taking the limelight, the condo market has stabilized. Spending 22 DOM—a slight increase from 19 in February 2020—didn’t stop the 19% increase in sales.


What’s up these days? Sale prices!


The butterfly effect of unbalanced supply and demand once again materialized through competitive buyers and increasing sale prices. Compared to February 2020, the Ottawa market saw a 27% increase in average sale price of residential properties and 17% increase for condos in February 2021. Thanks to this, the total sales volume last month was a whopping 54% higher than its predecessor a year ago. It’s expected that sale prices will only continue their upward trend. 


Call in the cavalry! 


The Ottawa Real Estate Board predicts that the upcoming spring market will bring more listings and increased inventory, but given the latest trends, likely still not enough to meet demand. Their recommendation to buyers and sellers? “Utilize the skills and experience of a realtor with negotiation skills and the market knowledge to act quickly on your behalf.” Call it serendipity, but we pride ourselves in having that experience, and are always happy to help! Shoot us an email at info@realestating.co

  • Supply constraints driving price increases 
    • Feb’s total sales volume for both res and condo was 54% higher than Feb 2020 
    • Scarcity + buyer’s willingness to pay and compete in this market will continue to drive up the sales prices
  • Upcoming spring market will bring more listings and increase inventory - not necessarily enough to meet demand 
  • Having a sound strategy, whether you are buying or selling is the key to success in this fast-paced market - essential to utilize the skills and experience of a realtor with negotiation skills and market knowledge to act quickly on your behalf (sounds like us!)
  • Realtors can also help with rentals - Ottawa’s vacancy rates are soaring due to the lack of immigration, visiting student populations, decline in Airbnb etc. 
    • Realtors assisted clients with renting 674 properties since the beginning of the year compared to 498 at this time last year


Sounds an awful lot like some people we know… spoiler alert, it’s us. 

  • 1028 Feb sales in residential-property class (up 24% from a year ago) 
  • 362 in condo category (up 19% from a year ago)
  • Total is above the five-year average for total unit sales
  • Resale properties are virtually flying off the shelves - inventory is significantly lower than 2020, combined 46% decrease in housing stock for residential and condos - but record number of sales in feb 2021 - properties that come onto the market are selling very quickly 
  • Residential homes experiencing the quickest turnarounds - sharp decline of Days on Market (DOM) from 30 days in Feb 2020 to 14 days Feb 2021
  • DOM for condo market has gone up slightly from 19 to 22 days likely due to the fact that the condo market was thriving and moving very quickly prior to the pandemic spread 
    • Now condo market has stabilized and is starting to rebound with a 19% increase in transactions compared to last year at this time
  • Feb average sale price for condo $407,671 (increase of 17% from last year) 
  • Avg for residential $717,914 (increase of 27% from last year) 
  • A year-to-date average increase of 29% for residential and 15% for condo
  • Supply constraints driving price increases 
    • Feb’s total sales volume for both res and condo was 54% higher than Feb 2020 
    • Scarcity + buyer’s willingness to pay and compete in this market will continue to drive up the sales prices
  • Upcoming spring market will bring more listings and increase inventory - not necessarily enough to meet demand 
  • Having a sound strategy, whether you are buying or selling is the key to success in this fast-paced market - essential to utilize the skills and experience of a realtor with negotiation skills and market knowledge to act quickly on your behalf (sounds like us!)
  • Realtors can also help with rentals - Ottawa’s vacancy rates are soaring due to the lack of immigration, visiting student populations, decline in Airbnb etc. 
    • Realtors assisted clients with renting 674 properties since the beginning of the year compared to 498 at this time last year.

 

Related Links; 

https://www.refinery29.com/en-ca/2021/02/10260606/real-estate-canada-2021-toronto-vancouver

https://www.oreb.ca/newsroom/february-resales-snapped-up-quickly/

https://ottawa.ctvnews.ca/ottawa-real-estate-market-sets-record-in-february-1.5332521

https://ottawa.ctvnews.ca/ottawa-real-estate-how-much-more-is-your-home-worth-1.5300332

 

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