The November market: same same but different
Back again with a familiar tale!
Don’t be fooled by the decrease in numbers of properties sold last month compared to November of 2020; it’s yet another nod towards the pandemic lockdown delaying peak market activity last year. A more fair comparison would be with the numbers from November 2019 (pre-Jurassic…uh I mean, pre-COVID times), which would actually show a 14% increase in the number of properties sold last month.
So, fear not, the resale market is still doing its thing! In fact, the number of sales last month reached 8% higher than the five-year average.
The real estate equivalent to Black Friday?
The closest thing real estate might ever get to Black Friday deals is the news that dramatic month-to-month price increases seem to have calmed down a little. Although the overall prices this year are still much higher compared to last year, the average sale price of residential properties in November 2021 were not too far off from what it was in October 2021 ($716,378), and condo average prices increased a mere 7%, an improvement from the consistent increases we’ve seen.
But—and there’s always a but—we can’t get too comfortable. Ottawa Real Estate Board (OREB) President Debra Wright reminds us that supply constraints still haunt us, which means there will always be upward pressure on prices until the issue is resolved at its root.
Since we’re already on the edge of our seats, we may as well mention that the inventory last month is a lot lower than it should be. With 1,430 new listings coming on the market in November, it’s a 27% decrease from October (1,960). And while a decrease is expected of November generally, it’s still 13% less than the new listings that came up in November 2020. With a destination of reaching a balanced market, it would appear we are going the wrong way.
Meanwhile, rentals are still going strong. OREB reports that the number of rental transactions since the beginning of the year is now at 4,458, compared to 3,120 this time last year.
And on that note, we’re on our way to add “real estate inventory” to our holiday wishlist this year.
Let’s work together!
The market might be challenging these days but we’ve been with it a long time and it’s nothing we can’t help you navigate through with our experience and expertise. If you’re thinking of participating in market activity, whether it’s buying or selling, we’d love to be on your team! Reach out to us at firstname.lastname@example.org!
- The Ottawa Real Estate Board: November’s Brisk Resale Market
- CTV News: Ottawa’s housing supply shortage creating ‘upward pressure’ on prices, OREB says
- Ottawa Citizen: Home sales down compared to last November, still better than average