Properties are scarce in today’s real estate market. And to make matters worse (in the perspective of the buyer), prices are continuing to rise. February has shown a trending lack of inventory and fast price increases.
Here are the February 2021 numbers:
- Total number of units sold: 1,390 – up 23% from 1,134 in February 2020.
- Five-year average unit sales for February: 1,101.
“Resale properties are virtually flying off the shelves,” states Ottawa Real Estate Board President Debra Wright. “Even though our inventory is significantly lower than 2020 – a combined 46% decrease in housing stock for residential and condos – we witnessed a record number of sales in February 2021. How is that possible? Simply put, properties that come onto the market are selling very quickly.”
Here are the specifics for each property class:
- Number of residential-class properties sold: 1,028 – up 24% from 781 in February 2020.
- Average sale price of a residential-class property: $717,914 – up 27% from $524,077 in February 2020.
- Number of condominium-class properties sold: 362 – up 19% from 293 in February 2020.
- Average sale price of a condominium-class property: $407,671 – up 17% from $338,366 in February 2020.
“With supply constraints continuing to place upward pressure on pricing, there is no doubt that this economic fundamental is driving the price increases. This is also reflected in February’s total sales volume for residential and condos, which combined was at $885,592,105, 54% higher than the same month in 2020. There is no denying that scarcity is leading to a more rapid price acceleration. This scarcity combined with Buyers’ willingness to pay and compete in this market will continue to drive up the sales prices,” Wright asserts.
“The upcoming spring market will bring more listings and increased inventory; however, the question is whether it will be enough to meet demand. Having a sound strategy, whether you are buying or selling, is the key to success. In this complex and fast-paced market, it is essential to utilize the skills and experience of a REALTOR® with negotiation skills and the market knowledge to act quickly on your behalf.”