The Breakdown: Ottawa's Resale Market Thrives Despite Pandemic
2020 was a rollercoaster for all of us. Mid-March showed an uncertain outlook for Real Estate and many other businesses, none of us were sure of where the market would take us. Fast forward 10 months and real estate sales in Ottawa not only showed resilience but left behind an impressive set of numbers for all those involved. If we compare December 2019 to December 2020 there was a 19-20% increase in the average sales price in both freehold and condominium markets. The main culprit: extremely low inventory levels coupled with record-low mortgage rates. There's also several factors that provide Ottawa this confidence, like low unemployment and overall 'affordable' prices as compared to other, bigger cities.
2021 is poised to be another record-breaking year. The market did not quite cool down over the holidays and the new year is already showing signs of an extremely heated sellers-market, with multiple offers commonplace across the freehold sector. Condominiums are still selling at a slower pace since the Fall, and without the same intensity and pricing we saw throughout the summer of 2020. Turning back to the freehold market, we are seeing significant gains even when compared to the last quarter of 2020. We kicked off the year with an average sale price of over 600k in the first week of January, now it’s hovering around the 575k mark, significantly higher than January of last year, which was 516k by end of month.
The current market makes it quite favorable for buyers looking to get into the condo sector and sellers looking to list their freehold properties, with significant interest & activity in both suburban and rural areas. We predict a strong Q1 for 2021, despite the lockdowns. Real estate trade is deemed essential and if history serves us right, things will not slow-down anytime in coming months.