January Sees Pent-Up Buyer Demand

Here are the January 2022 numbers:

  • Total number of units sold: 936 – down 3% from 963 in January 2021.
  • Five-year average unit sales for January: 840.

“January’s sales, almost identical to 2021’s, were very strong for a traditionally slower month, especially given the frigid temperatures and increased government Covid-19 restrictions we experienced,” states Ottawa Real Estate Board President Penny Toronto. 

“This increased activity compared to previous years is not solely a pandemic phenomenon. Yes, the pandemic has accelerated market activity in some ways, but pent-up Buyer demand due to the housing supply shortage has been an ongoing fundamental issue for the Ottawa resale market for well over 5 years now – and the price increases will continue to reflect that until the housing stock grows.”

Here are the specifics for each property class:

  • Number of residential-class properties sold: 661 – down 2% from 674 in January 2021.
  • Average sale price of a residential-class property: $771,739 – up 14% in January 2021.
  • Number of condominium-class properties sold: 275 – down 5% from 288 in January 2021.
  • Average sale price of a condominium-class property: $447,943 – up 18% in January 2021.

“Average prices continue to rise steadily with the lack of inventory pushing prices to levels previously unseen. We only need to observe the number of homes now selling over $1M for a clear demonstration. In 2020, they represented 3% of residential sales, in 2021, they held 9% of the market’s resales, and now in 2022, that number reflects close to 14% of detached home sales.”

“Meanwhile, the residential-class properties selling within the $650-$900K range represent 47% of all of January’s residential unit sales. In 2021, it was 33%. But we must keep in mind, average prices statistics amalgamate data from the entire city, so while in some areas the increases would be less, other pockets of Ottawa may see more,” advises Toronto.

“The condo market is also flourishing both in number of sales and prices. Possibly due to the fact that residential units may be out of reach for some Buyers, they are finding themselves more open to this option and are actually able to find a condominium-class property within their budget.”