Ottawa Real Estate Market Report for October 2020

Ottawa Real Estate Market Report for October 2020

 

Ottawa Real Estate Market Report for October 2020

Prices for resale homes in Ottawa are still going up:  about 18% year-over-year.  The average price for a condo is up 14% over October last year, and freehold properties are up 24%!

And there’s still a lack of inventory.  The lack of inventory is keeping Ottawa a seller’s market, which is when there are fewer homes for sale than there are people looking to buy.  This may seem contradictory to the chart:  the number of sales in October 2020 compared to 2019 is up 23% for condos and 36% for freehold properties.

It may be tempting to attribute the drop in sales in the year-over-year figures to covid-19.  It certainly had some effect, but it’s more likely due to the fact that the Ottawa real estate market entered a “seller’s market” more than 2 years ago, which reduced the homes available for purchase as time went on.

Many properties are still encountering multiple offers, including pre-emptive (bully) offers.  But while we have been seeing multiple offers on almost every non-condo property this year, that appears to be changing.  It’s not over yet, but where there might have been 10-20 offers on a property, we’re now seeing half or fewer.

The choice of property type has been affected a great deal by the pandemic.  It’s understandable that living close to work isn’t as necessary when you can’t go into the office.  And that the small apartment in the heart of downtown is less enticing when everyone is in it 24 hours a day, for work, rest, and sleep.  Especially when the restaurants, nightclubs, and live entertainment are all closed down!

That said, the amazingly low interest rates have allowed many first-time buyers a toe-hold in the real estate market by buying condos.  And some people are looking ahead at downtown condos being pied-a-terre’s or rental properties, with their primary residence in one of the small towns surrounding Ottawa.

We’re always happy to provide more detailed information that is relevant to your neighbourhood.  Contact us any time.

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