The Axieties that changed Canadian and Ottawa Real Estate Market in 2020

January 3, 2021 Facebook Twitter LinkedIn Google+ Canadian real Estate Market,Real Estate News Ottawa

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Anxieties that changed Ottawa Real Estate and the Canadian Real Estate Market

If you had to pick one word to define the 2020 market for resale homes, it would undoubtedly be “stressed or anxious.

Shrinking inventories, combined with a sharp rise in real estate demand, set off a bidding frenzy for real estate properties all over Canada.

Historically low prices for home mortgages contributed to higher-than-expected bids, both for the sellers and also purchasers. Not just that, the pandemic made the process of buying and selling more difficult and re-shaped the type of properties in the highest demand.

The new rule for homeowners was for more space. Not just for additional home office space but vast lots of land well beyond the city limits.

When you put all of this together, it justifies the unusual sales patterns that occurred in 2020.

Think about first the sharp aberration between the big Canadian cities and smaller communities, as disclosed in the Canadian Real Estate Association’s latest inventory.

10 of the 12 areas showing the most significant growth year-over-year were smaller sized urban locations in southern Ontario.

These ranged from Kawartha Lakes, where the benchmark price for single-family residences jumped 29.2 percent to $492,000 in November, to the Simcoe area, where real estate professionals reported a 21 percent climb benchmark rate to $439,000.
Both of these areas, together with Quinte, southern Georgian Bay as well as Barrie Ontario, take advantage of expanding appeal in those areas of cottage residential properties.

They are also part of Toronto’s growing hinterland, which has broadened substantially with several employers’ enhanced approval of home-based workplaces.

Remote working may be behind the rapid rise in resale prices in Woodstock, Tillsonburg, London, and Brantford– communities to the west of city Toronto that have commonly sustained myriads of long-distance commuters.

A few of these workers may have chosen to trade up in their home districts since commuting prices are out of the formula, at the very least for the immediate future.

The only big city within the team of the 12 fastest-growing markets is Ottawa. In Ottawa, the benchmark price for single-family residences rose 22 percent year-over-year to $593,000 in November.

The only other huge city ahead close was Montreal, which saw resale prices increase 21 percent to $472,000.

With resale rates up 13 percent year-over-year to $1 million, Metro Toronto was middle of the pack among the most extensive city areas. At the same time, Vancouver, Edmonton, Calgary all saw house price gains of less than 10 percent.

Various other cities on the prairies consisting of Saskatoon, Regina, the capital city of the Canadian province of Saskatchewan, also saw single-digit gains in benchmark costs.

In Canada’s prairie provinces, the significant factor holding back realty prices is the weak oil and other products’ low costs. In the westernmost province, British Columbia, the explanation for slow gains is a mix of high prices and a foreign buyers tax obligation for residential or commercial properties in Greater Vancouver.

In Ottawa, it was just a matter of time before catch-up. When real estate prices in Vancouver and also Toronto surged from 2015 to 2017, they went up in Ottawa at a measured pace. That pattern was transformed in mid-2019 when Ottawa’s benchmark prices began growing fastest amongst its largest cities.

During the pandemic, the Ottawa Valley’s rural properties have valued quicker than houses in the city’s core. Whether that pattern will continue in 2021 will certainly depend a great deal on whether companies urge that employees go back to the office.

Buying or selling a home is a big decision. Choosing a realtor can be challenging. It would help if you had an agent in your corner who can represent you and get you the best price possible.

If you’re in the market to buy or sell real estate in the Ottawa area, contact Jeraud Humphreys Real Estate (613) 986-9033.

Jeraud is a proud member of the Keller Williams Integrity real estate team. He will discuss with you the current trends with house sales throughout the country.

He will discuss the importance of doing a home inspection, whether you are selling your home or buying a home. You will also find information for first time home buyers on this website.