Ottawa Housing Market: RE / MAX Fall 2021 Outlook

The Ottawa housing market looks set to fall back to a more “normal” pace in the fall of 2021, with the number of new listings and sales expected to be closer to the numbers for 2019, according to broker Kevin Grimes of RE / MAX Affiliates. However, the lack of housing supply will continue to indicate Ottawa properties, as will the rest of Canada, where seller market conditions are present in 26 of 29 regions analyzed in the RE / MAX Fall 2021 Housing Market Outlook Report.

Canadian housing market_fall 2021 outlook_26_ottawaAverage house prices for the Ottawa housing market are expected to continue their upward trajectory through the fall, with Grimes expecting at least a 2% increase per month for the remainder of 2021.

Ottawa is still experiencing a shortage of homes for sale, with interested buyers and new ads falling slightly. The houses for sale do not sit on the market for very long, on average about 20 days. This is an important measure as it tracks how long it will take to liquidate the current housing stock at the current sales rate.

Young couples and retirees are driving demand in the region, which remains in the seller’s market area. Single-family homes have experienced the largest increase in average sales prices for homes year-over-year, with a 26% increase; followed by townhouses of + 21%; and condominiums of + 16.4%.

Total co-op sales in Ottawa are expected to increase 21% year-over-year across all property types, with the average selling price across the Ottawa housing market expected toincrease by 4% by the end of 2021.

Looking at the bigger picture, Ontario properties have seen some of the highest single price increases in the country, with 13 out of 16 Ontario housing markets surveyed in the report and experiencing growth between 20% and 35.5% year-over-year. The outlier markets that saw price increases below 20% include Toronto (+14.6 percent), Thunder Bay (+17.1 percent) and Mississauga (+19.7 percent).

Meanwhile, apartments and townhouses on some smaller and suburban Ontario housing markets such as Kitchener, North Bay, London, Peterborough and Southern Georgian Bay are experiencing a higher price increase year-over-year. The estimated price outlook for the rest of the year ranges from a 2% fall in prices in the North Bay to increases in the other regions between 2% and 15%.

National Canadian Housing Market Trends

Conditions in the Ottawa housing market echo in the rest of the country, with single-family homes experiencing the most significant price increases year-over-year in 2021, rising between 6.8 and 27.3 percent in 26 or 29 markets surveyed in the report. And like Toronto real estate, activity in this real estate segment is driven by strong demand among young families, a trend that RE / MAX brokers and agents expect to continue through the fall.

The average house price in Canada across all housing types is expected to increase by 5% in the remaining months of 2021.

“Housing activity throughout the pandemic has remained strong, so it is not surprising that the outlook for the rest of the year continues on an upward trajectory, which is great for homeowners and their equity, but challenging for first-time buyers who have been priced out of the market , ”Said Elton Ash, Executive Vice President, RE / MAX Canada. “We must continue to educate Canadians from a practical, real-world, point of view. What is affecting the Canadian housing market right now? Low interest rates, economic stimulus, higher home purchase budgets, a higher savings rate, homeowners are too scared to sell and not enough new construction. These factors have created the current market conditions. ”

Alexander adds: “The Canadian housing market has historically provided homeowners with a large long-term return and solid financial security, but there is no doubt that the rapid price growth we have experienced recently is cause for concern. However, there is no reason to panic. The data shows that price increases in detached houses may start to slow down in some city centers, but prices continue to rise in many smaller towns and communities that were once refuges for affordable prices. Real estate has been a boon to the Canadian economy, during and before the pandemic. We believe in the long-term health of Canada’s housing market, but to protect it, we need to recognize and address the lack of housing supply. Our current government must stop applying plasters and cure the problem at its root. ”

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