As we start to move towards summer, the real estate market continues to boom in Ottawa. March 2021 saw record sales for a third month in a row, and lending costs continue to favour buyers as well.
ANOTHER RECORD MONTH
In their latest market report, the Ottawa Real Estate Board indicated that sales in March 2021 were up 166% from a year ago. While it is true that the global uncertainty did impact sales in the latter half of March 2020, sales in the first half of March were still up this year compared to the same period last year.
Ottawa Real Estate Board President Debra Wright states that "April was poised to be the strongest on record with over 3,200 new listings of properties for sale."
Comparing March 2020 to March 2021 is not an entirely fair comparison, due to lockdowns. Nevertheless, Ottawa recorded 2,026 sales in April 2019, and 2,024 in April 2018. These figures provide a much more reasonable comparison. Comparing 2021 to those years still means a 19% increase in overall sales.
MORE NEW LISTINGS
New listings in Ottawa this March totalled 3,200. April’s average sale price for condos increased by 30%, while the average sale price for residential properties increased by 42%.
So far, these values represent a 35% and 20% increase over 2020, respectively.
GOOD FOR BUYERS AND SELLERS
For buyers, mortgage rates remain very low. With rates around (and under) 2%, it’s an extremely affordable time to be borrowing mortgage capital. Lower interest rates mean less of your money going to interest, and more of it goes to the principal.
These low rates, combined with the continued recovery of the economy, provide a solid foundation for a home purchase.
This also represents good news for sellers. While it stands to reason that sales will seem strong compared to last year, keep in mind that this trend of record breaking sales held true compared to months before all the global uncertainty as well.
As the economy recovers, we may soon see the increase of lending rates. Buying or selling right now would definitely take advantage of these favourable market conditions.
The market’s resilience moving into the second quarter of 2021 bodes well for both buyers and sellers.
As always, I am here to help with all of your real estate needs.