'Twas the year of breaking records

Sellers: good news enclosed

NUMBERS DEC. 2021  Properties sold:  862 residential properties in Dec (compared with 997 in Dec. 2020, decrease of 14%) Five-year avg for total unit sales in Dec: 809  Breakdown of sales: 601 in residential-property class (down 15% from a year ago)  261 in the condo category (down 10% from Dec. 2020)   Avg. sale price: Residential: $709,980(+18% from 2020)  Year-to-date avg. 719,605 (24% increase over 2020)  Condo: $399,125 (+12% from 2020) Y-t-d avg. 419,683 (16% increase over 2020)  *Important to note that varied pricing and conditions in different neighbourhoods affect average sale prices   Listings:  600 new listings -58% from Nov  -15% from 5-year average


Just like that, another year has come and gone. So, how did the Ottawa real estate market fare in 2021? Let’s take a trip down memory lane together…

Looking back, the December market showed its usual decrease in sales, with the holidays taking over as the main focus on everyone’s mind. Though the number of sales may seem rather dramatically lower than from the December of the previous year, it actually came out on top when compared to the five-year average of total unit sales in December. it would again be more reasonable to think of December 2020 as having unusually high numbers; credited to the—at this point—well-known trickle effect of the spring lockdown that year delaying market activity. 

While the steady increase of average sale prices did in fact cool off with the weather towards the end of the year, 2021 still broke records. 

Record-breaking 2021 numbers  Total # of residential and condo units sold throughout 2021: 20,302 (compared to 18,953 in 2020, up 7 %)  Total sales volume in 2021: approx. $13.1B (compared to $10B in 2020)

With these overall figures, there’s no denying the speed at which Ottawa market’s prices accelerated last year—an ode to the Fast and the Furious, perhaps. 

Of course, this is the work of the main villain in 2021: lack of inventory. The market closed out the year with less than one month’s supply of housing in both residential and condo-class properties and we need quadruple that to have a balanced market. 

This keeps us firmly planted in a seller’s market as we start the new year. 

What’s in our future? 

Here is what the Ottawa Real Estate Board’s new 2022 president Penny Torontow had to say about what’s to come: 

“January through March are usually slower months. With the macro factors that are currently at play in the resale market, it is difficult to predict what the effects will be going forward. We are entering yet another pandemic wave, Buyers are fatigued, parents are focusing on remote learning, interest rate hikes are looming – I don’t expect we will see the first quarter increases as we did in 2021.
 
We are unlikely to see the true outcome of these macro factors until the spring. Presumably, we will see more of the same with the market performing as well as it can with the current housing stock. Unfortunately for homebuyers, it will sustain itself as a Seller’s market for quite some time until our inventory issues are remedied.”

 

So calling all sellers and potential sellers—it’s your market! If you’re thinking about making the move, there’s no time like the present. In fact, you could help the market find the balance it’s longing for. 

As always, we’re here to help. 

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 info@realestating.co!

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