Ottawa Real Estate Market Review of November 2020
The Ottawa real estate market is still showing strong sales and price increases. This summary review of the sales data from the Ottawa Real Estate Board confirms that real continued strength in resale homes.
Year-over-year (Y/Y) prices up about 18% for both condos and freehold homes, and almost the same for November over November. Although the number of sales are up strongly month-over-month, the Y/Y reflects the effect of the early months of COVID slowing the market (almost to a halt). But procedures were put in place that created safe ways to view homes, and the real estate market rebounded.
We are often asked “when will this stop”? And we reply “probably not very soon”.
Many factors are in play: interest rates amazingly low (this article describes a mortgage of less than 1%!), pent-up demand, delayed construction, and many people moving to Ottawa.
Some buyers say they can’t (or don’t want to) compete in the multiple offers that have become the norm. They say that they’ll wait until things calm down and continue saving. But the chart shows that prices for both condos and freehold homes have increased an average of 18% this year. Can anyone save that fast?
This has made it frustrating to many buyers. And the mortgage stress-test rules can make it more difficult for some buyers.
People have been careful about becoming “house poor” and preferred to have money for travel, to buy fun things, to eat out. It is wise to include some slack in your budget in case of unforeseen events. And many have been able to reduce debt. But with travel basically curtailed except for essential business and a large proportion of the population working from home and occupying the space for more like 24/7, people are reevaluating priorities.
Deciding on what is most important is very personal, and the choices can sometimes be challenging.
If you have any questions or would like any additional information, send us an email or give Eric a call at 613-601-6404.