In the wake of COVID-19, the typically busy spring season in the Ottawa housing market was delayed until June 2020, according to the Fall Market Outlook Report. At this point when economies began reopening, home sales increased by 2% year-over-year, and average home prices continue to climb, with residential home prices up as much as 14% year-over-year. Price growth is expected to continue.
Lack of inventory and a desire to get into the market has positioned Ottawa as a strong seller’s market. Rural areas in the region have seen an uptick in interest, as buyers look to secure more space and amenities to accommodate a shift toward working from home.
Ottawa’s recreational market has seen a massive increase in interest, with buyers coming from major cities such as Toronto, to access larger properties and more space. Of all the markets within Ottawa, the luxury market is currently performing the best, with those who can afford larger homes looking to move up in the market post-COVID 19.
A 3% increase in the average residential sale price is expected in Ottawa for the remainder of the year.
Ontario Real Estate Trends
What’s been happening across other Ontario real estate markets? With the province being one of the hardest-hit regions in Canada, markets such as Niagara, Mississauga and Kitchener-Waterloo experienced significant drops in activity. However, come June, they bounced back aggressively as economies began to reopen. With all of Ontario now in phase three of re-opening and consumers more comfortable engaging in the market, market activity in Ontario is expected to remain steady in the fall, with modest price increases of up to 6% in some regions.
Canadian Housing Market Trends
Leading indicators from brokers and agents across Canada’s housing market point to a strong market for the remainder of 2020. According to the Fall Market Outlook Report, Pilon Group brokers suggest that the average residential sale price in Canada could increase by 4.6% during the remainder of the year. This is compared to the 3.7% increase that was predicted in late 2019.
The pandemic has prompted many Canadians to reassess their living situations. According to a survey conducted on behalf of Pilon Group, 32% of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities. This trend is stronger among Canadians under the age of 55 than those in the 55+ age group. Not only are Canadians more motivated to leave cities, but changes in work and life dynamics have also shifted their needs and wants for their homes. According to the survey, 44% of Canadians would like a home with more space for personal amenities, such as a pool, balcony or a large yard.
Canadians equally split on their confidence in the housing market
Canadians are almost equally split in their confidence in Canada’s real estate market, with 39% as confident as they were prior to the pandemic, and 37% slightly less confident. When it comes to the prospect of a second wave of COVID-19, 56% of Canadians who are feeling confident in Canada’s real estate market are still likely to buy or sell. “The classically hot spring market that was pushed to the summer months due to the COVID-19 pandemic created a surprisingly strong market across Canada and across all market segments,” says Jason Pilon, Owners of Pilon Real Estate Group. “Looking ahead, government financial aid programs may be coming to an end in September, which could potentially impact future activity; however, the pent-up demand and low inventory dynamic may keep prices steady and bolster activity for the remainder of 2020. Overall, we are very confident in the long-term durability of the market.”
Additional highlights from the 2020 RE/MAX Fall Market Outlook Report Survey:
- 48% of Canadians would like to live closer to green spaces
- 48% of Canadians say it’s more important than ever to live in a community close to hospitals and clinics
- 33% of Canadians would like more square footage in their home and have realized they need more space
- 44% of Canadians want a home with more outdoor space and personal amenities (i.e. balcony, pool etc.)
About the 2020 Fall Market Outlook Report
The 2020 Fall Market Outlook Report includes data and insights supplied by RE/MAX brokerages. brokers and agents are surveyed on market activity and local developments.
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