Ottawa was once again in lockdown this May, however, unlike May 2020, the real estate market did not slow down.
“Although Ontario was in a lockdown in both May 2020 and May 2021, the impact they had on Ottawa’s resale market was quite different – with this year’s number of transactions being well over the five-year average. Undoubtedly, enhanced safety measures and vaccine adoption rates have enabled potential Buyers and Sellers to feel more protected and comfortable in their home buying and selling process,” states Ottawa Real Estate Board President, Debra Wright.
Ottawa Real Estate Market Surpasses Five-Year Average
Double the amount of residential and condominium properties came on the market in 2021 compared to last year but this did not reduce sale prices. In fact, the average sale price for residential homes rose 35% to $741,206. Condominium prices increased by 24% to $424,843.
Average days on market declined by 71.6% for residential homes to 9 days. Condominiums declined by 40.3% for 12 days.
After the lockdown
“As we come out of this lockdown, we will closely monitor other market factors including the effects of the increased stress test measures combined with the average five-year fixed mortgage rates climbing back over two per cent since the beginning of 2021, and whether pent-up supply will decrease our supply shortage and eventually bring Ottawa’s real estate market to a more balanced state,” Wright concludes.
Note: * The Ottawa Real Estate Board cautions that the average sale price can help establish trends over time but should not be used to indicate the value of homes and condominiums. Average sales prices are calculated on the total dollar volume of all properties sold. Of course, pricing and conditions will vary from neighbourhood to neighbourhood.