Ottawa's housing supply shortage creating 'upward pressure' on prices, OREB says
Ottawa's real estate market remained brisk as the temperatures dropped in November, with prices increasing 19 per cent.
However, the Ottawa Real Estate Board warns the current housing inventory is "much lower than it should be" to meet demand, driving up prices for buyers in Ottawa.
"This is simply not sustainable and is taking us further away from the balanced market that will bring much-needed relief to potential Buyers," said President Debra Wright, adding fewer new homes became available on the market last month.
A total of 1,459 residential properties were sold in Ottawa in November, compared to 1,605 properties in November 2020.
"Although the resale transactions in November were down compared to a year ago, this is because 2020’s peak market activity shifted to later in the year due to the initial pandemic lockdown," said Wright in a statement. "In reality, November’s unit sales tracked 14 per cent higher than 2019 (1,284), a more relevant base year for comparison."
The Ottawa Real Estate Board says there has been an eight per cent increase in year-to-date sales in 2021 compared to 2020.
"So it is fair to say that the resale market remains active and brisk," said Wright.
The Ottawa Real Estate Board says 1,430 new listings entered the market last month, down 27 per cent from the 1,960 new listings in October. The 1,430 new listings in November is 13 per cent lower than November 2020.
"While the drop in volume of new listings is typical for November, our inventory, at one month’s supply, is much lower than it should be," said Wright.
The average price for a residential-class property in Ottawa in November was $716,992, up 19 per cent from a year ago ($603,146). The average price for a condominium sold was $432,099, up 19 per cent from 2020 ($361,800).
Year-to-date average sale prices for a new home are up 24 per cent in Ottawa in 2021 to $719,956. The Ottawa Real Estate Board says the month-to-month price "accelerations have tapered off slightly," with average prices in November on par with October.
"This is a far better situation than the monthly price escalations we had seen in the first quarter of 2021," said Wright.
"However, there is no question that supply constraints will continue to place upward pressure on prices until that is remedied."
SUPPLY ISSUES IN OTTAWA
The city of Ottawa reports 9,239 new housing starts in 2020, the highest number of new housing constructions starting in the capital since amalgamation in 2001.
Kevin Grimes of Remax Affiliates Realty tells Newstalk 580 CFRA's Ottawa Now that supply will continue to pose a challenge for Ottawa's housing market.
"It's nowhere close to enough," said Grimes. "If you hear the supply issue constantly and Ottawa's population grew in the same year by over 16,000 people. So 16,000 people came into the city and we started 9,200 new construction – it's just not enough."
Grimes says Ottawa needs to start building new homes to meet the demand.
"Ultimately, we're not building enough houses right now."
A new Remax report this week estimates home prices will rise five per cent in Ottawa in 2022.
"In a word, I would say our lack of supply," said Grimes when asked about what is expected to drive the increase in home prices in 2022.
"We definitely have a supply issue in Ottawa, we've had it for some time but it just seems to be compounding right now."
CTVNews.ca Top Stories
BREAKING Shooting outside of Drake's Bridle Path mansion, 1 person seriously injured: source
Toronto police are investigating a shooting that took place outside of Drake’s Bridle Path mansion early Tuesday morning, a source tells CP24.
King Charles too busy to see son Prince Harry during U.K. trip
Prince Harry will not be seeing his father King Charles during his current visit to Britain as the monarch will be too busy, Harry's spokesperson said on Tuesday.
Your body needs these three forms of movement every week
Movement is movement, right? Not exactly. Here’s what your body is looking for in addition to your morning walk or yoga session, according to experts.
'It looked so legit': Ontario man pays $7,700 for luxury villa found on Booking.com, but the listing was fake
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
Canadian cadets rock mullets and place second at U.S. military competition
Sporting mullets, Canadian Armed Forces officer cadets placed second in an annual military skills competition in the U.S.
The Met Gala was in full bloom with Zendaya, Jennifer Lopez, Mindy Kaling among the standout stars
The Met Gala and its fashionista A-listers on Monday included Jennifer Lopez, Zendaya and a parade of others in a swirl of flora and fauna looks on a green-tinged carpet lined by live foliage.
Quebec to limit sperm donations per donor after 3 men from same family father hundreds of children
Quebec is looking at tightening the regulations around sperm donation in the province following the release of a documentary that revealed three men from the same family fathered hundreds of children.
How to overcome 'savings guilt' when you're living paycheque to paycheque
As the higher cost of living continues to squeeze household budgets, many Canadians find they have even less left over at the end of every month to squirrel away for the future.
There's actually no such thing as vegetables. Here's why you should eat them anyway
The rumours are true: Vegetables aren't real — that is, in botany, anyway. While the term fruit is recognized botanically as anything that contains a seed or seeds, vegetable is actually a broad umbrella term.