Ottawa Real Estate Market: High Prices, Low Inventories

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If you’re looking to buy a home right now, these are slim choices. The real estate market is at a record low for inventory in Ottawa, with prices still out of reach for many.

Jacqui Delaney started looking for a new condo in October, and she is still looking.

“Before Christmas there was definitely more inventory on the market,” says Delaney. “Back then, there wasn’t a lot of inventory, and now, after Christmas, there’s even less.

The Ottawa real estate market has little to offer at this time for those looking to buy. December 2021 was slow with 14% fewer homes sold than the previous year.

“As a long-time tenant, I could settle down when it comes to an apartment I’m about to rent,” says Delaney. “But when it comes to a property that I’m going to put a lot of money down as a down payment, and then of course pay it off as an investment, I don’t want to settle.”

The Ottawa market has been out of reach for many people over the past two years. The average residential selling price in Ottawa for 2021 was $ 719,000, a 24% increase from 2020. Condominiums increased 16% with an average price of $ 419,000.

Real estate agent Geoff Walker says it’s normal for things to slow down a bit over the winter, but other variables add to the decline in sales.

“In many ways we are also going back to a more traditional market. We’ve just come out of two years of euphoria, ”says Walker. “Everyone is put on a different plane when all of a sudden the kids are on top of you going to school. Because you are at home, your plans are falling behind.

Walker also says that during the pandemic, markets just outside of Ottawa outperformed sales in the city. Mainly because of the fall in prices, but also thanks to the elimination of daily trips for teleworkers.

“You now work from home, your employer allows you to work from home,” says Walker. “So the house doesn’t just meet your budget, it meets your criteria. You might have a better lifestyle with this house. “

For Delaney, she says she can’t wait to own her first condo, but not ready to rush into something she might regret.

“I would really like to buy a property before interest rates go up while I’m stuck on this good interest rate,” says Delaney. “But I don’t want to settle down. So it’s very frustrating right now because I just don’t see this property that I want.

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