FAIRWINDS ANNUAL REAL ESTATE REPORT
It is clear just a few weeks into January that the upward trajectory on prices will continue. Just last night there were 16 offers on an end unit townhouse that sold for way over their already historically high list price. It has been such an interesting year for Fairwinds real estate. Who would have thought that prices would soar in the midst of a global pandemic. Fairwinds real estate has been in demand due to its newer style homes, family orientated community, and location. It has been amazing to see the new benchmark in prices set.
Multiple offers were prevalent on almost every townhouse and single family dwelling. 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. This is what happens when we are dealing with historically low inventory levels.
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Average sales prices are for 2020 based on MLS sales.
Arrows indicate average sale price gains over 2019.
FORECAST 2021
At the heart of the price increases is the basic economic principle of supply and demand. There has been a shortage of inventory in all of Kanata and Stittsville. I can’t see any scenario where this can be corrected in the short term. The Fairwinds real estate market is showing no signs of weakness. Supply issues will persist into 2021. I don’t expect the inventory will recover in the near future. We have historically low levels of inventory. 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 this year, 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 is 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. That is exactly what Ottawa’s real estate market is long term.
Based on OREB RES & CON MLS Sales | 2021 Prediction
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WORKING FROM HOME: THE NEW NORMAL
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Ottawa’s solid public sector is a great foundational piece to our economy. This represents 20% of the workforce in Ottawa. These jobs are high earnings and are very secure. Ottawa is in a unique position to have so many jobs that can be done remotely. The high-tech sector in Ottawa has been booming, tech-giant Shopify has made working from home permanent for their employees. This has kept our local economy sheltered from what is happening elsewhere. It may also have an impact on where people decide to live. With many working from home permanently extra space is becoming more desirable.
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SUPPLY TRENDS LOWER FOR FREEHOLDS & CONDO
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This graph illustrates the supply available in the Ottawa real estate market. It is so interesting to see where we are from an inventory perspective when compared to the last 15 years. Supply remained low for 2020, and we are starting out 2021 with very little inventory. This is the heartbeat of the market. As we witnessed in 2020 with inventory this low, prices were pushed way up as buyer competed for homes. Early 2021 seems to be trending in that direction as well. Will be an interesting year!
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INCREASED USE OF TECHNOLOGY
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I think that the way people buy and sell real estate will forever be impacted by COVID. This year has proven that we can do so much virtually. Our team has sold 10 homes to buyers from out of town (mostly military) who never actually stepped foot in the house they purchased until closing day. We would virtually walk them through the house and usually have a 3D tour to share with them. I am not suggesting everyone would have a comfort level with that. However, if you could have me walk you through a house while you are in the comfort of your own home, would that be beneficial? Some buyers are opting for this for the first visit and then coming through if they like what they saw on the virtual visit. |
