If you glance at May’s 2021 and 2020 real estate numbers without context, you think that we’re seeing exponential growth. But, we need to take into account how the COVID-19 lockdown affected real estate last year.
Here are the May 2021 numbers:
- Total number of units sold: 2,296 – up 71% from 1,342 in May 2020.
- Five-year average unit sales for May: 2,123.
“Although Ontario was in a lockdown in both May 2020 and May 2021, the impact they had on Ottawa’s resale market was quite different – with this year’s number of transactions being well over the five-year average. Undoubtedly, enhanced safety measures and vaccine adoption rates have enabled potential Buyers and Sellers to feel more protected and comfortable in their home buying and selling process,” states Ottawa Real Estate Board President, Debra Wright.
Here are the specifics for each property class:
- Number of residential-class properties sold: 1,779 – up 67% from 587 in May 2020.
- Average sale price of a residential-class property: $741,206 – up 35% in May 2020.
- Number of condominium-class properties sold: 517 – up 85% from 78 in May 2020.
- Average sale price of a condominium-class property: $424,843 – up 24% in May 2020.
“With the number of condominium sales transactions having increased by 85% in May of 2021, over May of 2020, coupled with the 21% price increase in the same periods, it appears that the condo market has recovered from the declines experienced early in the pandemic.”
“For residential-class properties, price movement is still well above 2020, with 46% selling over $700K compared to 16% of properties last year at this time – these percentages are reflected in the sales data for both May and year-to-date. We observe that month-over-month average price increases for April and May are not as high as the jumps in value in the first quarter of 2021. While it is still too early to predict, this may be a sign that the rapid price acceleration we have been experiencing is easing in the market.”
“As we come out of this lockdown, we will closely monitor other market factors including the effects of the increased stress test measures combined with the average five-year fixed mortgage rates climbing back over two per cent since the beginning of 2021, and whether pent-up supply will decrease our supply shortage and eventually bring Ottawa’s real estate market to a more balanced state,” Wright concludes.