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Orleans Real Estate
As we begin another year of uncertainty due to the ongoing pandemic, I wanted to take this time to provide some insight on what we can expect from the Orleans Real Estate market for the upcoming year. Whether you are buying a home, wanting to see what homes are for sale, or want to stay connected to real estate in Orleans, you will want to read on to learn more.
Being a suburb of Ottawa, Orleans has always been an affordable alternative to living downtown. Throughout the pandemic, we have seen housing prices rise to an all-time high throughout the city. Orleans is no exception.
Even with the rise in prices, we saw a surge in homes being purchased throughout 2020. In 2021, the prices continued to rise; however, the number of homes being sold started to decline by the end of the year.
We can expect to see a little bit more of the same for 2022.
In January in Orleans, a freehold house (including detached, semi-detached, and townhomes) sold at an average price of $757,373. A condo unit (including apartments, townhomes, and stacked units) sold at an average price of $441,623. And the costs of these homes are expected to continue to rise; however, the number of homes going on the market may not. Analysts predict that Ottawa home prices are expected to increase by 9% in 2022.
There are multiple factors that are driving these prices and the number of homes being sold. Here are a few of them.
Inventory continues to be at record lows.
With the many changes that Covid-19 brought with it, supply and demand have been one of our biggest challenges in the Ottawa and Orleans real estate market. Ottawa and Orleans have seen a boost in people relocating to our city in search of affordability. And the fact that many can now work from home, they are taking advantage of the opportunity to have larger properties for a fraction of the cost compared to cities around the Greater Toronto Area.
With the increase of people moving to our city, this created a demand for more housing that was simply not there. With not enough houses on the market, this created major competition between buyers.
In addition, supply chain disruption due to the pandemic has also slowed down the construction of new homes in the area.
It is likely that we will continue to see this trend in the Ottawa and Orleans real estate market as we move through 2022.
Immigration continues to increase.
Canada’s population is forecasted to increase by millions within the next 20 years. In addition, Canada continues to be a popular country for people to migrate to. They presumably need housing to live in, which will continue to put pressure on the current shortage of homes, equalling the continued rise in prices. International immigration as well as GTA immigration continue to put pressure on the Ottawa real estate market, as these Buyers, do not add any properties to the supply Ottawa inventory. Instead they take up a home, which could have been purchased by somebody who already lives here.
Interest rates are set to rise.
One detail that might be a factor to help ease the upswing in housing prices is the mortgage interest rates. The banks are hinting at an increase in the interest rate come Spring 2022. This could slow down the number of buyers, and consequently, the demand for homes should go down therefore, so should the prices. But this could also mean we see the real estate market skyrocket between now and the Spring, as buyers currently locked into mortgage rates will want to ensure they purchase a home before their lender’s rate lock expires (typically 90-120 days).
Given all the above information, one thing we can say with certainty is that 2022 will continue to be extremely competitive for Buyers.
If you are looking for more information or want to start your buying/selling journey, contact Marc-Andre Perrier, Real Estate Agent in Orleans for more information about the housing market in Ottawa and surrounding areas. He will help you navigate the Orleans real estate market and find your dream home.
