As 2021 comes to an end, we reflect on how December was as well as all of 2021 in Ottawa real estate. Did December conclude as expected and how did the 2021 real estate market compare to 2020?
Here are the December 2021 numbers:
- Total number of units sold: 862 – down 14% from 997 in December 2020.
- Five-year average unit sales for December: 809.
“December’s resale market performed as it typically does with a marked decrease in sales from November as families turned their attention towards the holiday break. Although slightly above the five-year average, the number of properties exchanging hands was lower than the year before due to the atypical market we experienced in 2020 when peak market activity shifted to later in the year because of the initial spring pandemic lockdown,” states Debra Wright Ottawa Real Estate Board’s 2021 President. “However, while the market normalized in the latter part of the year, looking at the year-end figures, 2021 was still a record-breaking year,” she adds.
Here are the specifics for each property class:
- Number of residential-class properties sold: 601 – down 15% from 511 in December 2020.
- Average sale price of a residential-class property: $716,992 – up 19% in December 2020.
- Number of condominium-class properties sold: 261 – down 10% from 235 in December 2020.
- Average sale price of a condominium-class property: $432,099 – up 19% in December 2020.
“Six hundred new listings entered the housing stock in December, which represents a 58% decrease from November and down 15% from the 5-year average. At less than one month’s supply of units in both the residential and condominium property classes, we are firmly entrenched in a strong Seller’s market and will continue to be in this state until our inventory increases to a 3-4 month’s supply for a balanced market to be achieved,” cautions Wright.
Here are the total 2021 numbers:
- Total number of units sold in 2021: 20,302 – up 7% from 18,953 in 2020.
Here are the specifics for each property class in 2021:
- Number of residential-class properties sold in 2021: 14,455- up 3%
- Average sale price of a residential-class property in 2021: $719,605 – up 24%.
- Number of condominium-class properties sold in 2021: 4,516 – down 1.5%
- Average sale price of a condominium-class property in 2021: $419,683 – up 16%
When asked for a forecast, Ottawa Real Estate Board’s new 2022 President Penny Torontow suggests, “January through March are usually slower months. With the macro factors that are currently at play in the resale market, it is difficult to predict what the effects will be going forward. We are entering yet another pandemic wave, Buyers are fatigued, parents are focusing on remote learning, interest rate hikes are looming – I don’t expect we will see the first quarter increases as we did in 2021.”
“We are unlikely to see the true outcome of these macro factors until the spring. Presumably, we will see more of the same with the market performing as well as it can with the current housing stock. Unfortunately for homebuyers, it will sustain itself as a Seller’s market for quite some time until our inventory issues are remedied. Whether you are buying or selling a home right now, the experience and knowledge of a REALTOR® is essential in this current challenging market,” Torontow concludes.