Examining the Ottawa Housing Bubble and the Outcome in 2021

As the second wave of COVID-19 continues its sweep across Canada, home prices in Ottawa are expected to take an inevitable tumble in 2021. While the housing market was initially able to weather the storm, according to a report by Moody’s Analytics Inc., the momentum will begin to fade in the first half of the year. Unemployment rates will rise, and lower incomes will prevent potential buyers from returning to the market. While the market is expected to fare differently depending on the region, the forecast predicts a general 6.7% decrease for single-family homes and a 6.5% decline in condominiums. Moving forward, the impact is likely to favour smaller, more affordable markets but may bounce back if and when a vaccine becomes available.

3 Reasons Why the Ottawa Housing Bubble May Burst in 2021

Homebuying is one of the most expensive purchases you will ever make in your lifetime. As a result, we want to ensure that you are entering the market in the right place at the right time and for sellers to get the most equity out of their home sale. Take a look at some of the possible reasons why the real estate bubble in Ottawa is likely to burst in 2021 and what actions you can take now to get the best deal:

• Future Lockdowns: The ongoing pandemic has tested containment efforts in Ontario and with new cases emerging everyday, there is a potential for localized lockdowns in the future. This could put real estate activity at risk, causing the bubble to burst.
• Financial Benefit Expiration: As the CERB and mortgage payment deferral programs expire, homeowners will once again have to face the impact of the pandemic on housing. Therefore, people are less likely to take on the debt required to buy a new home, creating a seller’s market with a deficit of buyers.
• Job Market Uncertainty: People can no longer guarantee that they will be employed several months from now due to the pandemic. Thus, people are less likely to make the long-term financial commitments required to purchase a home if they cannot count on steady income.

Don’t Wait to Buy Your Next Home – Marc-Andre Perrier is Here to Help

As the housing bubble holds steady, now is the time to let go of any reservations about buying a home. Whether you’re buying or selling, Marc-Andre Perrier has in-depth market knowledge to help you get the most value from your home sale or purchase. My team and I will ensure the process is as seamless as possible, to help you have the most positive experience. Contact us to see why we are the most trusted real estate agents in Ottawa and the surrounding area.