Spring is Springing In The Ottawa Real Estate Market

Spring is Springing In The Ottawa Real Estate Market

 

After some slumping in both prices and the number of sales last year, the market is picking up again.

Many buyers who were concerned by the drastic increase in interest rates in such a short period have decided to stop holding their breaths and are looking at – and buying – homes in Ottawa again.

The most obvious feature on the graphs of prices is the rapid increase during covid. People needed more space with everyone required to stay home and Zoom into work, school, and entertainment. Many chose larger homes or apartments, but there were also first-time buyers who felt that it was the right time to move from their parents’ place into their own homes. It’s most obvious with the freehold properties, but it’s also visible in the graph for condos.

Then the big drop in mid-spring last year. The expectations of sellers had become very high. But with travel and public spaces opening up again, some buyers were less anxious about changing homes. Plus, of course, the rapid (rabid?) jumping of interest rates by the Bank of Canada.

If you look at the 10-year graph for freehold (“residential”) properties, a line drawn from April 2014 (the first point on the graph) through May/June 2020 ends just a bit below the average prices in March 2023.  This indicates that we’re returning on a more “normal” track. As with any investment, there will be jumps and dips, so it’s best not to try to second-guess where it will be at a particular point in time.

The graph for condos is very similar, though the highs and lows are somewhat less dramatic.

All-in-all, the market in Ottawa is still more stable and solid than in so many other cities in Canada.

 

As always, averages for a large area may be different than particular neighbourhoods or condo buildings. Don’t hesitate to contact us if you’d like a better idea of what is going on in a specific area.

 

 

 

Check out more articles in the with similar categories – Article, Board Sales, Ottawa Real Estate Market, Properties-Ottawa, Retirement Condos