How Did the Ottawa Housing Market Perform in 2017?
2017 was not only a good year for the Ottawa housing market but one that really put the Ottawa market on the map. Ottawa real-estate flourished in 2017 both in terms of number of homes sold and housing prices. The Nation’s Capital closed out the year with 17,803 homes sold! This was a 10% year over year increase while the condo market saw a 22% increase in sales year over year.
Ottawa’s housing market is now one of Canada’s strongest and steadiest markets.
What Will Ottawa’s Housing Prices Look Like in 2018?
Of course, pricing conditions vary from neighbourhood to neighbourhood. But generally speaking, Ottawa’s housing prices are most likely to continue to rise. In fact, Ottawa’s housing prices haven’t risen this fast in almost 7 years! While homes will become a bit scarcer and the regional economy remains strong, we expect prices to keep climbing in 2018.
The average sale price of a residential freehold home this January was $427, 487, an increase of 8.8% over January 2017. Again, pricing varies from neighbourhood to neighbourhood but the average sale price is useful in looking at trends over time.
Will 2018 Be A Buyers Or Sellers Market?
In taking a look back at inventory levels for the Ottawa housing market, there were 2752 residential freehold homes listed this past January representing a drop in inventory of 21.1% from January 2017. The condo market also showed a drop in inventory of 27.2% with 982 condos listed this January compared to the year before. Between a lack of homes for sale in Ottawa and rising home prices, we believe the market in 2018 will be more in favour of sellers but, that’s not to say there aren’t options for Ottawa homebuyers.
What Does This Mean For Ottawa Homebuyers?
Between rising housing prices and the new mortgage stress test, things can seem like they’re piling up against Ottawa homebuyers. But we believe that Ottawa’s price point won’t be out of range for buyers. On the contrary. Ottawa’s average price point will remain in the $400,000s range meaning the Ottawa housing market will fare much better than our neighbouring cities.
And again, pricing varies from neighbourhood to neighbourhood but there are still some very desirable neighbourhood for homebuyers here in Ottawa.
What Will The Ottawa Housing Market Look Like In 2018?
So far, there has certainly been a great deal of activity going on in the Ottawa housing market this year… much more than your typical January/February. There are many buyers still looking from 2017 that were not successful in finding their desired homes as prices moved up in the last half of last year, and inventory went down.
Many areas in Ottawa are facing a shortage of inventory and I believe that will continue. It is very important that buyers be financially well qualified and ready to make quick decisions to act fast and have that chance to enter the market.
However, pricing still considered ‘affordable’ by many standards compared to other parts of Canada. The Ottawa housing market remains attainable despite the recently introduced mortgage stress test aimed at making sure borrowers can make their mortgage payments if rates were to rise.
Having a knowledgeable and experienced Realtor© to guide you through this process is an absolute must as the market is shifting so fast, strategic approaches must be taken with the help of a Realtor© . It is not uncommon to hear some Realtors© having to submit 2,4,6 offers on properties for clients. Having professional representation is critical to educate and protect the buyer throughout the process.
From a Sellers perspective although it may seem like an exciting time it is actually incredibly stressful for some as they may be in a position to sell (and need to sell first) but if there is no inventory to go to… how can they sell? It is becoming an increasingly more difficult issue and one where, again, your experienced and knowledgeable Realtor© becomes your best resource for advice on timing and positioning.
It’s important to remember that the market is in constant flux from week to week and very dependant on both product and neighbourhood. An important aspect of the Ottawa housing market is how to interpret your list price. It is a very delicate balance and one where again you need to have a professional Realtor© guide you on what the market is doing and how it is changing.