To say that February was a busy month for the Ottawa Real Estate Market would be an understatement. Simply put, “Resale properties are virtually flying off the shelves,” states Ottawa Real Estate Board President Debra Wright.
The leading driver behind this madness? Low inventory — with a combined decrease in housing stock for residential and condos of 46% year-over-year. With very few options in the market, buyers are snatching up properties quickly, leading to a record number of sales in February 2021. Here are some important numbers:
- Overall sales increased 23% year-over-year for the month of February, with 1,390 sales through the board vs. 1,134 the same time the previous year;
- The number of days a listing is on the market is down from 30 days in February 2020 to only 14 days in February 2021, demonstration the dramatic increase in sales velocity;
- Pricing is up across all classes for February 2021, with the average price of a condo at $407,671 (up 17% year-over-year) and the average price of a residential-class home at $717,914 (up 27% year-over-year).
Typically, at this time of year we would expect few listings on the market and few buyers shopping for homes, with February traditionally viewed as a good time to get a “deal” on a home. That was certainly not the case for February 2021, but as we head into the spring market, it is both our hope and our expectation that more listings will come to market, creating an influx of inventory.
The other factor is news surrounding mortgage rates. With the Bank of Canada promising to keep rates low through to 2023 and the big banks threatening to increase interest rates, it is unclear what lies in the year ahead in the world of mortgage financing — uncertainty that is no doubt adding fuel to the fire, with many buyers trying to “get in” before rates change.
If you’re looking to sell, purchase or lease a property, we can help! Contact our team today.