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ANNUAL REAL ESTATE REPORT: OTTAWA 2021 IN REVIEW

Posted on: January 11th, 2022 by Chris Scott

OTTAWA REAL ESTATE REPORT

Ottawa 2021 Real Estate Market Report Review

Do you ever feel like you are in the movie Groundhog Day? Well, I certainly do. We are starting the year with school online, COVID is still a part of everyday life, and for home buyers, very few homes to choose from. Prices are smashing price records and making economists and analysts look like they have no idea what they are doing. Is 2022 the year we get back to some normalcy? I don’t think anyone could have predicted that a global pandemic would send housing prices through the roof. The question now becomes well what’s next?

Average sales prices are for 2021 based on MLS sales.

Combined is for all property classes. Arrows are gains from 2020.

OTTAWA REAL ESTATE REPORT

FORECAST 2022

It has been hard to predict how the market would react to the pandemic, now, two years in, it is even more challenging to make any sense of it. I have read everything available including CMHC reports, Economist, and leading analysts’ predictions. This year I feel like everyone is being careful with their thoughts. Likely because no one really knows, impossible to predict the unpredictable. I refer to the economic principle of supply and demand. A trend over the pandemic is low inventory, hovering around, or just under one month’s supply, a true seller’s market. Currently, supply is very low, with just this one indicator it is difficult to see how prices will not go anywhere but up.

REAL ESTATE CHANGING

Our industry is constantly changing. There are many new players in the local market that offer a wide range of services to buyers and sellers. You can auction your home, sell it with a call centre in Toronto, use a local Realtor or put a for sale sign on the lawn yourself. There are 3500 agents in Ottawa to choose from. Having this many choices is overwhelming but also very good for the consumer. It forces everyone who wants to compete for your business to up their value proposition. Our team has completely revamped our services for 2022. We are always striving to bring the best value to our clients. We have a menu of services that will help us compete against any platforms. So if you are in the market this year to buy or sell, give us a call.

Based on OREB RES & CON MLS Sales | 2022 Prediction

KEY INDICATORS

Our Country’s Population Growth in 2021	G7 Population Growth 2021 Canada has had the highest population growth in the G7 and also the lowest per capita stock of housing. Quite simply we have a housing supply crisis. This is one of the many reasons why our market prices have escalated so quickly. We can look at all the new developments and cranes in and around our community but it is not enough to have an impact on price gains in 2022. Ottawa in particular has been a sought-after city for new immigration due to its high quality of living.
Historic Ottawa Freehold & Condo Inventory Since 2004	Inventory As mentioned above. The very core of the price increases is the basic economic principle of supply and demand. In Ottawa we simply do not have enough housing for everyone right now. This is putting upward pressure on prices as buyers compete for what becomes available.
Historic Canadian Inflation Rates Since 1995	Canada’s Inflation Rate Prices are rising rapidly everywhere. One interesting stat is that container ship costs have gone up 500% since 2019. Those costs get passed along to the consumer. Housing, cars, equipment, lumber, and especially food. COVID has brought about so many unique challenges that will have lasting impacts on our economy. One of them will be that the cost of goods and services will continue to rise. This will have an impact on what buyers will be able to afford.
Variations in Bank of Canada Interest Rates Since 2000	Bank of Canada Overnight Interest Rate Right now interest rates are the big equalizer. The low rates are making the high prices relatively affordable. How long can these rates stay low? Central bankers are in a tough position. They could decide to act because prices are rising so fast and are not in sync with incomes. If the Bank of Canada should go this route they would also risk causing a housing market downturn. My prediction here is that rates will rise and help slow our market. This will happen in the late summer.

If you are curious about your home’s worth please fill in this form for a no-obligation market assessment.

Home Evaluation

Ottawa Real Estate Board Trend Analysis – Residential Property Class

WE GO ABOVE AND BEYOND FOR OUR CLIENTS

We are so pleased that we were able to host our Annual Santa Party this year. It was so great to be able to thank our clients by finally being able to hold an event again. We also continued a new annual tradition with our 2^nd Annual Stittsville Food Bank Fundraiser, we partnered again with Maverick’s Donuts Stittsville who generously donated their holiday 6-pack donuts for us to sell in support of the food bank. The team matched each donation and raised $2,000 again this year! Our mission is to create a raving fan service experience for every client and bring value long after our clients have bought or sold real estate. If you have any real estate needs in 2022 give us a call.

Tags: Average Ottawa Home Prices, bidding war, Buying in Ottawa, condos, home evaluation, Ottawa Home Prices, Ottawa Housing Market, Ottawa Market Stats, Ottawa MLS Sales, Ottawa Real Estate, Ottawa Realtor, Selling in Ottawa

    
 
 
        
   Anny Metivier 
 2024-08-13
 
 
  Over the years, with multiple military moves, we’ve had the opportunity to work with many real estate agents, and we can confidently say that not all are created equal. Chris, by far, has been the most trustworthy and easiest real estate agent we’ve had the pleasure to work with.
  
 
       
   Jake Moffat 
 2024-06-07
 
 
  Colin has been the best realtor to work with and helped us buy a great house in the perfect neighborhood. Colin and the rest of the team at Chris Scott were incredibly helpful the whole way and always available to answer questions, show us houses at a time that was convenient for us and were just generally professional and friendly during the whole process. We will recommend Colin and the team to our friends and family.
  
 
       
   Faith Woodley 
 2024-03-13
 
 
  I was a co-Executrix of an estate, and we had a condo that we had to sell for the estate.  In order to get the property ready for sale, we had to have the over 5,000 square foot condo painted and the carpets replaced.  Since the property was empty, Chris recommended a home stager that he uses on properties that require these services, and she did a fantastic job of staging the condo. It took the condo to the next level. The condo sold for a phenomenal price, and we were very happy with Chris Scott and his abilities.  He always gives over 100 percent to get the job done!  I recommend him to anyone that requires the services of a great real estate agent.
  
 
       
   Emily Bozanich 
 2023-10-07
 
 
  We worked with Rachel and she was beyond diligent. She is so organised and meticulous with details, it really helps when buying a home. She even agreed to do a virtual walk through for the home we ended up buying because we weren’t going to get there ourselves prior to offers being reviewed. She was also great with recommending areas to consider and avoid. Highly recommend.
  
 
       
   Cy Dixon 
 2023-10-06
 
 
  Rachel was amazing. She helped me find the perfect home for me and my son during a challenging time in my life. She was extremely patient and empathetic, professional and knowledgeable. I highly recommend her. No one will work harder for you than Rachel.
  
 
       
   Jeff C 
 2023-10-06
 
 
  Awesome realtor team very helpful and knowledgeable
  
 
       
   Nathalie Groupe Godin 
 2023-10-06
 
 
  Great service. Very knowledgeable. Super helpful. I’d use this team again.
  
 
       
   D Hynders 
 2023-10-05
 
 
  I recently used Chris' team to purchase a new house and I have to say that it was a pleasure to work with them.
  
 
       
   Megan Bixby 
 2023-10-05
 
 
  My husband and I purchased a house in the surrounding Ottawa area with the assistance of Colin from this group of individuals. We unfortunately were left with no choice but to purchase a home sight unseen due to our work circumstances. We originally considered not purchasing because of this.
We deliberated and chose to purchase a home after participating in FaceTime showings and we could not have been more satisfied. Colin was objective, professional, calm, informative, and realistic. He listened to our needs and helped us choose our home. The fact that we were pleasantly surprised, and a year later remain pleased as punch, says everything about how talented this company is. Will, without a doubt, use this company when we leave Ottawa.
  
 
       
   André Desjardins 
 2023-10-04
 
 
  We worked with Chris to find a home back in 2011 that would suit our desire to be close to work. He was nothing but professional and courteous! Listening to our needs and showing us what we were looking for. Years later, when we thought about down sizing and finding a renovated home, he took us around to see some in the neighborhood. He always open to helping us out in our searches