In a record-breaking year, the Ottawa resale housing market, saw an average sale price for mid range housing increase by 24% in 2021. While the average sale price of a condo units was up 16% year over year average from 2020 as reported by, the Ottawa Real Estate Board.
The average sale price for a residential-class property in Ottawa in 2021 was $719,605. That’s up from the 2020 average sale price of $582,267.
The average sale price of a condominium-class property in 2021, meanwhile, was $419,683. That’s up from $361,337 in 2020.
Those price increases stem from the low inventory the Ottawa market has experienced for more than a year and the resulting competition among buyers. There is no sign that this will change soon so Buyers and Sellers are learning to work with the market to their respective advantage.
Looking at sales for the month of December of 2021, the Board says, the 600 new listings that entered the market were 15% below the five-year average for new listings in December.
“At less than one month’s supply of units in both the residential and condominium property classes, we are firmly entrenched in a strong sellers’ market and will continue to be in this state until our inventory increases to a 3-4 month’s supply, for a balanced market to be achieved,” says Debra Wright, the Real Estate Board’s President for 2021.
“As we have reiterated for the past few years, Ottawa’s housing inventory challenges have been and will continue to place an upward pressure on prices.”
In 2021, the Ottawa market broke sales records. The total number of residential and condo units sold in Ottawa was 20,302, up 7% from the 2020 total of 18,953.
The total sales volume for 2021 was approximately 13.1 billion dollars, compared with 10 billion dollars in 2020, the Board says.
“This significant increase in sales volume reflects the price acceleration that we have seen over the last year and correlates with average sale price for the city,” Debra Wright said.
Penny Torontow, the President of the Ottawa Real Estate Board for 2022, echoed those comments and said she expects the Ottawa resale market to remain a sellers’ market “for quite some time and until our inventory issues are remedied.”
Looking ahead at the first three months of the year, which are traditionally slower months for the resale real estate market, she said “With the macro factors that are currently in 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.”
But she adds, “We are unlikely to see the true outcome of these macro factors until the spring. Whether you are buying or selling a home right now, the experience and knowledge of a Realtor is essential in this current challenging market.”
The Ottawa Board, as always, cautions that average sale prices can be useful in establishing trends over time, but should not be used as an indicator that specific properties have increased or decreased in value. As with any city, prices in Ottawa vary from neighbourhood to neighbourhood.
If you’re considering selling, the first few months of the year can be a good time to list. The lower inventory can be in your favor.
If you’re considering buying, the current market can be challenging, but with more than 30 years of experience assisting clients in Ottawa, I’ve developed successful strategies for buyers in a wide range of markets, including the current market favouring sellers.
With the large year-over-year increases we’ve seen in the Ottawa market in recent years, I’ve also assisted more and more buyers who are interested in purchasing investment properties.
If you’re planning to sell or buy in coming months, I’d be happy to chat with you about the current market and conditions in your area of the city.
You can read more about me and see my listings at www.nancybenson.com. Feel free to give me a call, at 613-747-4747.