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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.
Has COVID-19 Slowed Down Real Estate Sales in Ottawa?
When COVID-19 resulted in a lockdown back in March, the housing market came to a screeching halt. While the pandemic brought a new level of uncertainty, Ottawa home sales and prices have since proven to be remarkably resilient in the wake of these unprecedented times. However, this is due in part to the significant number of higher-income buyers whose employment has remained mostly unaffected by the social and economic impact of the pandemic. These days, the interest in house buying has completely flipped. Now more than ever, buyers are interested in escaping densely populated cities in favour of buying bigger houses with more land, which have been readily available in recent months. In fact, The Canadian Real Estate Association noted record-shattering home sales throughout the months of July and August, in addition to a forecasted rise in housing prices for the remainder of the year.
3 Reasons Why COVID-19 Failed to Slow Down the Ottawa Real Estate Market
With more and more businesses implementing a work-from-home strategy, buyers are more interested in space and different amenities when looking for a new home. Ottawa, in addition to areas outside of the city center have experienced a significant boom in real estate activity this year despite COVID-19 and there are no signs of it slowing down. Below, we take a closer look at some of the reasons why that may be:
- Economic Growth: Ottawa is home to a large number of tech and government workers, two industries that managed to escape the worst of COVID-19 lockdowns. As a result, there is a significant demographic of people whose financial well-being is conducive for home-buying.
- Population Growth: Many people are moving to Ottawa from other, more expensive cities like Toronto and Vancouver. This has contributed to the competitive nature of the current market and buyer demands.
- Low Mortgage Rates: Interest rates are at an all-time low. Historically, this stimulates the housing market, encouraging people who would otherwise not be in a position to buy, make the leap into homeownership. Interest in capitalizing off low mortgage rates has pushed the real estate demand even further.
Let Marc-Andre Perrier Help You Find Your Next Home
Looking for the perfect home can be challenging enough as it is, let alone trying to navigate the market during a pandemic. Fortunately, Marc-Andre Perrier is here to provide you with both residential and commercial real estate expertise, in addition to educating you on the buying process and getting you the best deal possible. Use our property search tool to help you narrow down listings and find the home that best fits your budget and lifestyle. Contact us to learn more about how we can help.
Home Buying and Selling in the Age of a Pandemic
Despite the recent economic uncertainty triggered by the COVID-19 pandemic, Ottawa’s real estate market shows no signs of slowing down anytime soon. As it stands, the Ottawa market is red hot, with many sellers capitalizing on the current situation and listing their homes for sale. Thanks to conservative housing prices in suburban neighborhoods like Orleans, more home buyers are finding greater value for their money in these areas.
Why is the Ottawa and Orleans Real Estate Market Still Hot?
Some houses in the Ottawa area have been selling for significantly over asking price. With a growing population and historically low interest rates, it may be time to consider investing in a home right now. Here are a few reasons why the housing market remains hot in the midst of a pandemic:
- Homeowners can take advantage of this time at home to make improvements and the market should still reward these efforts later on.
- Ottawa is a government town, meaning jobs are much more stable than they may be in other parts of the province. Stable employment results in a stable economy and a greater demand for housing.
- As a result of the pandemic, more people are willing to pay extra to live in an area outside of the overcrowded city centers, where they can get more value for money.
What is the Projected Outlook for the Ottawa and Orleans Real Estate Market?
With so much uncertainty surrounding the future of the pandemic, it can be challenging to predict with confidence, what the real estate market will look like years or even months from now. However, as home prices saw a significant decline at the start of the pandemic, they are expected to become a little more stable by early 2021. If you are considering buying or selling your home in Orleans, contact Marc-Andre Perrier. He is an experienced Century 21 Real Estate Agent who can help you find the right home for you and your family.
Stay or Go – When is the Best Time to Sell Your Home?
When the COVID-19 pandemic was declared by the World Health Organization in March, home sales across Canada fell sharply as the country entered lockdown. Open houses were no longer feasible and fewer homes were available during the period when social distancing measures were initially instated. Now, after several months into the pandemic, the real estate market is bouncing back, seeing a significant rise in sales and listings despite the lingering uncertainty for both buyers and sellers. So, if you’re asking the question, “Is now a good time to sell my Ottawa or Orleans home, or should I wait?”, the answer is “don’t wait!”
Why You Should Consider Putting Your Home on the Market Now
If you live in Ottawa or the surrounding area and plan on putting your house on the market, now is a good time to do so. As the region begins to reopen its economy and restrictions are loosened, there is an increased demand and the market has become extremely active. Here are a few reasons why you should consider selling your home now, despite the ongoing pandemic:
- Serious Buyers: Currently, individuals must adhere to stricter guidelines when buying or selling a home. The process has become a little more complicated due to the pandemic, so you are more likely to encounter buyers who really want to or need to move and are willing to make an offer right away.
- Low-Mortgage Rates: At this time, mortgage rates are extremely low, relative to what has been observed in the past. This is very attractive to home buyers who will be more motivated to purchase a home and take advantage of these low rates.
- Extra Preparation Time: Take advantage of the extra time by making some minor improvements to the interior or exterior of your home before listing it. With more people working from home than ever before, buyers will look for homes that are both stylish and comfortable since this is where most of their time will be spent. In making these upgrades, you can also draw in more equity as the seller.
Selling Your Home? Century 21 Action Power Team Ltd is Here to Help
Your safety and comfort are our top priorities. That’s why the Century 21 Action Power Team has put additional precautions into place to ensure you have a positive home buying or selling experience, despite the ongoing pandemic. Whether you are looking for your forever home or a commercial space in Orleans or Ottawa, you can expect a wide range of options to suit your needs when you work with us.
A glimpse into the Orleans Real Estate Market in 2020 – A four-part miniseries
Part 1: Welcome 2020!
It’s late December 2019, Orleans Real Estate has taken a little bit of a break, along with everyone else. I’m at home, spending time with my family and loved ones over the couple weeks of Holidays. As the days go by, I realize that it’s almost time to get back to the grind, but before doing so, I need to make sure to have a realistic business plan for 2020! As the great Benjamin Franklin once said, “by failing to prepare, you are preparing to fail”, nothing could be truer than what was to come in 2020. I set out my business goal planning and was very optimistic about the year to come in Real Estate.
Some of the reasons I was optimistic about the Ottawa and Orleans Real Estate market were that 2019 started and ended with some of the highest sale prices we’ve ever seen. Throughout the year we noticed such low inventory in the market which consequently followed one of the oldest economics laws, of supply and demand. Demand was still extremely prevalent especially within the $300,000 to $500,000 price range and the supply for these priced homes was low. So what happened? These forces in the market moved the pendulum towards the Sellers which helped further push the Ottawa market into a Sellers’ market. I could anticipate this trend continuing in 2020, especially after attending a presentation from CMHC (Canada Mortgage and Housing Corporation) on the future outlook of the Ottawa Real Estate market for 2020, 2021 and into 2022. Therefore, one of my main areas of concern for 2020 was to get more listings and be acutely proactive in preparing with my buyer clients.
The new Year is here, let’s get back to work! I’m working with multiple clients, from Sellers, to Buyers and Renters. As predicted the market is still very competitive, and there’s still isn’t much inventory for Buyers and Renters to choose from in Orleans. Listing prices are higher than the previous year, months of inventory is sitting at 1 month (the lowest it can go), a typical balanced market is anywhere between 5-9 months of inventory. We’re hosting Open Houses, tons of people are coming through, listings are overly active, there are plenty of overlapping showings (when 2+ agents show up with their clients at the same time to visit a home), homes are going into bidding wars, multiple offers and selling way over price. I think to myself; this is the new normal that we will have to manage throughout the year. I discuss with all my clients the different scenarios and strategies which are currently commonplace in the Orleans and Ottawa market. Townhomes and terrace homes are a remarkably hot commodity as they fall into the previously mentioned competitive price range. Sellers are extremely happy with their sales; Buyers are getting restless about losing bidding wars and seeing homes sell for way over the listing price. These first two months of the year were especially challenging with my relocation clients, coming in for a “house hunting trip”, where they have to purchase a home during the 5-7-day window period that they are in Ottawa. Luckily for us we were able to find each one of them a home within that time frame, but I could definitely feel the stress, pressure and market frustration from my clients.
In February we saw much of the same as in January, except home prices continued to increase. They increased both on the listing side and selling side. Days on market in Orleans reduced from 25 in January to 18 in February, while active listings remained pretty much the same. I remember thinking to myself, what is going to happen when the Spring market hits, typically our busiest time of the year, how much are these townhomes going to sell for? Will we see townhomes in Orleans sell for over $500,000?
As all of this was happening a pandemic was starting to spread overseas, could it make its way to Ottawa, and would it affect the Real Estate market?
We all now know what happened, but how did it affect the Ottawa and Orleans Real Estate market?
Read part 2 of my mini series to find out!
