2019 YEAR END REAL ESTATE MARKET UPDATE FOR FAIRWINDS

FAIRWINDS HOUSING MARKET 2019 IN REVIEW

Homes sold in Fairwinds 2019

It has been such an interesting year for Fairwinds real estate. Nobody could have predicted just how hot our local market would be. Multiple offers were prevalent on almost every townhouse or well priced single. These multiple offer situations continued to put upward pressure on prices right throughout the year. It was interesting to see the upward trend in prices from month to month. Early in the year some of the more popular Fairwinds towns were selling around $400,000. By year’s end some of these were selling for around $440,000. It is a result of buyers getting very impatient and others a bit desperate to secure housing. This is what happens when we are dealing with historically low inventory levels.

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Average sales prices are for 2019 based on MLS sales.

Arrows indicate average sale price gains over 2018.

FORECAST 2020 

The Fairwinds real estate market is showing no signs of weakness. Supply issues will persist into 2020. I don’t expect the inventory will recover in the near future. The absorption rate of our current inventory is like nothing we have seen before!   Prices are expected to continue to grow over the upcoming few years. The demand for Fairwinds is strong. It is such a great family orientated community with many different housing styles and price points.

If selling in 2020 my strongest recommendations would be to try to maximize your sale price. You only have one chance to sell in a market like this. Hire an expert. Get your house professionally prepared for sale, find the sweet spot in price, and have an agent guide you through the complicated multiple offer process (if applicable). If you want a no-obligation assessment of your home please feel free to get in touch. Call or text me at 613-863-6999 or email us at fairwinds@chrisscott.ca

Below you can see a table of real estate prices in Ottawa since 1981. The only declining years are in red. The table illustrates just how stable our market is. The only declines were consecutive (94-96) and houses lost less than 3% in each of those years. If you were at a roulette table and saw this much black on the board how much money would you be prepared to gamble? It would not feel like a bet when you know it is a sure thing long term. Ottawa’s real estate market is poised for continued growth.

Based on OREB RES & CON MLS Sales | 2020 Prediction

 

OTTAWA: RELATIVELY HIGHER EARNINGS

 Ottawa’s solid public sector is a great foundational piece of our economy.  This represents 20% of the workforce in Ottawa. These jobs are high earnings with very good security. When I think of my own network of friends, almost every couple has at least one person working for the government. In some cases, both spouses work there and this creates some very high household income. This past year saw a 6.9% increase in our weekly average income. We have not seen that kind of income growth in Ottawa since 2001. When we see our earnings higher than our neighbours down the 401, it surprises some people. Of course with the financial sector in Toronto, there is more wealth and one-percenters. Ottawa just does a better job with the distribution of wealth.

 

SUPPLY TRENDS LOWER FOR FREEHOLDS & CONDO

 Supply is the single biggest issue in our market. It is so interesting to see where we are from an inventory perspective when compared to the last 15 years.  We are at the lowest point in both the condo and the freehold segment of the market. Look at the condos available in 2015! Over 6000 on the market. This is the heartbeat of the market. When we see inventory this low,  prices can only go in one direction! The little secret I have been telling people about Ottawa’s bargain real estate prices is out! Our market is on fuego.

 

STEADY EMPLOYMENT GROWTH EXPECTED

 The local economy and job market in Ottawa are solid. Steady job growth is expected to continue over the next few years. It is good to see that full-time job growth is up 5%. This is important because people that occupy full-time jobs are much more likely to be approved financially to purchase real estate.  Our capital city also is one of the hottest and most diverse tech hubs in North America. Overall the health of our local economy couldn’t be better.

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