If you didn’t realize what’s going on in the Ottawa real estate market, last year was absolutely insane, it was bonkers! The average sale price went up 22% and over the last two years, it’s gone up 42%!
That can’t continue into 2022, can it?
Well, if January is a tale of what to come, it’s continuing into 2022. Let me tell you what happened in January. The number of sales was down at 2.8%, now keep in mind we’re just shy of where we were last January but well ahead of the five-year average. Homes are still selling. The average sale price was up 15.1% in one month. It went from $587,000 last January to $676,000 this January. Keep in mind we finished 2021 with an average sale price of $645,000 and now we’re already at $676,000.
Is that going to continue?
It absolutely is going to continue, and I’ll tell you why.
There is no inventory on the market!
We are in one of the worst inventory crises I’ve seen since I’ve been in real estate and there’s so much by a buyer pent up demand. You know what happens then? No inventory coupled with pent up buyer demand putting all that demand on that product equals homes going into multiple offers. And they’re going over asking price! Of the 936 homes that sold in the month of January 95 them were over $1,000,000. That’s a lot considering last January only 65 were over the $1,000,000 mark. In fact, the properties that are over $1,000,000 account for 14% of all homes sold whereas last year was 9% and 2020 it was 3%. So, you see where the trend is going.
The fastest moving part or where most of the sales are happening though is in the $650,000 to $900,000 range. 47% of all transactions are happening in that price range. Some of the products that are really skyrocketing are those like a two-story home. Two story residential homes average sale price is $824,000. Or look at a bungalow; the average sale price of a bungalow is $722,000.
So, you can see by this that our market is on fire.
How do you get into this market?
You need a plan; you need representation, and you need someone who’s going to be able to help you navigate through multiple offers and get you into the home you want.
If you’re looking to sell, I’m telling you this is the best time to get your home on the market.