Ottawa Housing Shortage Creates ‘Upward Pressure’ on Prices, OREB Says – .

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Ottawa Housing Shortage Creates ‘Upward Pressure’ on Prices, OREB Says – .


The Ottawa real estate market remained vibrant as temperatures plummeted in November, with prices rising 19%.

However, the Ottawa Real Estate Board warns that the current housing stock is “much lower than it should be” to meet demand, pushing up prices for buyers in Ottawa.

“This is just not sustainable and takes us further away from market equilibrium which will bring much needed relief to potential buyers,” President Debra Wright said, adding that fewer new homes were available on the market on last month.

A total of 1,459 residential properties were sold in Ottawa in November, compared to 1,605 properties in November 2020.

“Although resale transactions in November were down from a year ago, this is because the peak of market activity from 2020 has shifted to later in the year due to the initial pandemic lockdown, ”Wright said in a statement. “In reality, unit sales for November were up 14% from 2019 (1,284), a more relevant base year for comparison. “

The Ottawa Real Estate Board says there has been an eight percent increase in sales year-to-date in 2021 compared to 2020.

“So it’s fair to say that the resale market remains active and vibrant,” Wright said.

The Ottawa Real Estate Board reports that 1,430 new listings entered the market last month, down 27% from 1,960 new listings in October. The 1,430 new registrations in November are 13% lower than in November 2020.

“While the drop in new listing volume is typical for November, our inventory, at one month’s supply, is well below what it should be,” Wright said.

The average price for a residential-grade property in Ottawa in November was $ 716,992, up 19% from a year ago ($ 603,146). The average price of a condominium sold was $ 432,099, up 19% from 2020 ($ 361,800).

Year-to-date, average new home selling prices in Ottawa rose 24% in 2021 to $ 719,956. The Ottawa Real Estate Board said month-over-month prices “have slowed down slightly”, with average prices in November comparable to October.

“It’s a much better situation than the monthly price increases we saw in the first quarter of 2021,” Wright said.

“However, there is no doubt that supply constraints will continue to put upward pressure on prices until this is corrected. “

SUPPLY ISSUES IN OTTAWA

The City of Ottawa reports 9,239 new housing starts in 2020, the highest number of new housing developments starting in the capital since the merger in 2001.

Kevin Grimes of Remax Affiliates Realty told Newstalk 580 CFRA Ottawa Now that the offer will continue to pose a challenge for the Ottawa housing market.

“It’s nowhere near enough,” Grimes said. “If you hear about the supply problem all the time and Ottawa’s population grew that same year by over 16,000 people. So 16,000 people came to the city and we started 9,200 new constructions – just not enough.

Grimes says Ottawa must start building new homes to meet demand.

“At the end of the day, we’re not building enough houses right now. “

A new report from Remax this week estimates home prices will rise five percent in Ottawa in 2022.

“In a nutshell, I would say our lack of supply,” Grimes said when asked what is expected to drive home prices up in 2022.

“We definitely have a supply problem in Ottawa, we’ve had it for a while, but it just seems to be getting worse right now. ”

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