Sorin Claudiu Vaduva

Sorin Claudiu Vaduva

Sales Representative

FIRST CHOICE REALTY ONTARIO LTD., BROKERAGE*

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(613) 262-9562
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October Real Estate Stats in Ottawa with Realtor Sorin Vaduva

Ottawa Real Estate Board Stats for October 2021- "Is the Ottawa Real Estate Market heating up again? Or balancing out ?

Some Key points to take from the News Release Below and Ottawa Real Estate Market in October 2021:

  • Ottawa Realtors sold 1,677 residential properties in October 2021 through the MLS system, compared with 2,132 in October 2020, a decrease of 21%  ( last year was a special year because of Covid lockdowns so not to be compared to ...for example the 5 year average for October is 1605 so we are in line with that average)
  •  Out of the 1677 sold units the breakdown is: 1,263 ​in the residential property class, a decrease of 24% from a year ago, and 414 in the condominium property class, an decrease of 14% from October 2020
  • The average sale price of a residential class property sold in October 2021 in the Ottawa area was $716,378​, an increase of 19% over October 2020
  • The average sale price for a condominium class property in October 2021 was $404,760 an increase of 10% from this month last year.*
  • The year to date for 2021 average sale prices at $720,150 for residential and $419,515 for condominiums, these values represent a 24% and 16% increase over 2020, respectively.
  • The $600,000 to $899,999 range remains the most active price point in the residential market from what I see 
  • 1,960 new listings came to market in all of October which helped alot but it was still not enough for the current and pent up demand
  • Affordability  and high rental costs is pushing people towards cost affective condos which is driving that market for condos
  • SUBSTANCIAL increase in rental transactions:  OREB Members assisted clients with renting 4,012 properties since the beginning of the year compared to 2,829 at this time last year.

Realtor Sorin's Take on the market:

What happened in the Ottawa Market in October 2021?

This October we saw a increase in listings and movemoent compared to last month but other than that it  was in par to stats as before covid times such as in 2019 October numbers  for Ottawa Real Estate which shows maybe we are almost back to normal. The biggest reason for a lower volume of sales in in October 2021 compared to October 2020 is that last year was almost like an anomyly becasue of the market conditions affected by covid.The market has been strong overall all over suburbs such as Kanata, Barrhaven, Orleans, Riverside South to name a few but as it remains strong we did see that we have more and more listings coming out to give people options.  The strong activity is not in all areas of the city and not on all homes so it is important to understand that just because the inventory is low in one area that it is low in other areas. Each neighborhood and area of the city has different demands and needs depending on price and features; so talk with someone to understand if your neighborhood is performing well on sales and price increases or to just get a general idea of demand for the area.

Where is the Ottawa Market now and what do you see for the next 2 months as we end the year

The market right now is still increasing in prices but at a slower pace then covid times but we are also seeing more listings come out so I do think that we will in the near future see a even higher increase in units for sale. I think the prices will continue to increase at 10 to 15% monthly as the inventory slowly starts to increase we will see that number go down but most likely not until March or April is my projection. My thought is that with inflation so high we are already starting or already in a recession which will put a slow down in buying and then sowly balance the market out  abit but this is just my thoughts on it and well see what happens.

Will the new Ottawa Official Plan and  New Landlord Requirements affect the  rental market?

The new Ottawa Official Plan is a huge step for Ottawa and mapping out a plan to build city of Ottawa over the next 25 to 30 years and it has Investors excited as alot of the rules will affect the alot of land in Ottawa to allow for in most cases the possibility to rezone some land or build more units on the that land than otherwise was allowed before the new Official Plan. We have alot of demand from local investors and out of town investors wanting to put there money into the Ottawa market as it grows.  As a Investor myself and secondary dwelling unit expert I work with alot of investors to capiture the market and can tell you that the increase in investor activity is substantial.

Ottawa sees that the the growth is huge and there is alot of investors out there and to help better protect residential tenants the city has put togeather some rules on what the landlord is responsible for and it involves the landlord required to have an maintain the following documents: Maintain a capital maintenance plan, Establish a procedure for tenant service requests, Maintain a tenant support registry, Create and distribute an information for tenants document, Develop an integrated pest-management plan. This can 

This regulation rule for landlord requirements is still newer and not fully practiced but it will be adapted by landlords more as we continue to grow and rental units increase. This amount of more work for some small landlords might deter them wanting to be landlords or to buy more properties but not likely but it will have some kind of affect I beleive once fully implented and or enforced but nothing drastic at all but something.

Why is there so many rental listings and why did we see substanstial increase in Rental transactions

Ottawa has also made a rule for short term rentals this year which says that you can only do short term rental if the unit you are renting is part of the same building/unit you are living in which is not fully enforeced I do not think yet as I think they still occur in some case from what I see but it also part of the reason that we have a huge a mount of rentals avaiable on the market right now. There is 800 approx active proeprties to rent in Ottawa and this is in part because of investors are now putting there short term rental units to find long term renters. We also seeing record number of rental transactions in Ottawa and this is for a few reasons as there is alot of buyers who got pushed out of being able to buy the home they wanted so they decided to sell, sellers who sold there home to cash in on the market and now decided to rent until they can find there dream home or forever home and also the influx of new people moving to Ottawa because of the price of our low real estate and strong economic protoection from the government  and high tec secotor. 

Final thoughts:

Ottawa is still growing quickly and with a lot of major developments and changes throughout the city which makes this is a great to time buy and invest in the Ottawa Market. This past year has been a  great year for Real Estate  as the strengh from 2020 continues into this year and as the city gets to a more normal state we hope that so will the market. We hope this recent rise in covid does not continue as they might put back some restrictions which would only push the market into a heavier sellers market but only time can tell. 

Stay safe and stay informed about Ottawa Real Estate with Sorin Vaduva 

 


 Check out full article from Ottawa Real Estate Board Below 

"October’s Resales Track a Traditional Cycle"

November 3, 2021

Members of the Ottawa Real Estate Board sold 1,677 residential properties in October through the Board’s Multiple Listing Service® System, compared with 2,132 in October 2020, a decrease of 21 per cent. October’s sales included 1,263 in the residential-property class, down 24 per cent from a year ago, and 414 in the condominium-property category, a decrease of 14 per cent from October 2020. The five-year average for total unit sales in October is 1,605.

“October’s resale market was active, busy, and stable – and followed the typical (pre-pandemic) ebb and flow that we commonly see as we enter the fall season,” states Ottawa Real Estate Board President Debra Wright. “The number of transactions increased slightly over September (1,607) as well as the 5-year average. The only reason we see a year-over-year decrease in comparison to last October is because 2020’s sales peak had shifted from the spring months to September/ October due to the initial Covid-19 lockdown.”

The average sale price for a condominium-class property in October was $404,760, an increase of 10 per cent from 2020, while the average sale price for a residential-class property was $716,378, an increase of 19 per cent from a year ago. With year-to-date average sale prices at $720,150 for residential and $419,515 for condominiums, these values represent a 24 per cent and 16 percent increase over 2020, respectively.*

“While the number of units sold followed the traditional trajectory, the lack of supply continues to put upward pressure on prices, which are holding strong and steadily increasing. Although there were 1,960 new listings in October, falling just under the 5-year average (1,974), it’s simply not enough. Inventory remains at a one-month supply for residential properties and 1.2 months for condominiums. The only way we will find balance in Ottawa’s market is to increase the housing stock exponentially.”

“Low inventory and a lack of suitable housing options restrict movement along the housing spectrum. Move-up buyers and downsizers have nowhere to go, so they stay in place, but we need that exchange of properties in the marketplace to free up supply for entry-level homebuyers,” Wright adds.

“Additionally, we have noticed a substantial increase in the number of rental transactions through the MLS® System, which could suggest that some of the properties have been purchased or held on to for investment purposes. This active rental market may be another contributing factor as to why there aren’t more properties coming onto the market for sale.”

OREB Members assisted clients with renting 4,012 properties since the beginning of the year compared to 2,829 at this time last year.

* OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.

 


 

Thank you to Ottawa Real Estate Board for the article and can also be found on their website and the link below:

https://www.oreb.ca/newsroom/octobers-resales-track-a-traditional-cycle/

This is can be a great time to get your house on the market to sell in Ottawa as the inventory is still on lower side and buyer demand is still there especially as people are trying to move before the holidays . If you thinking of getting your home on the market soon or in the future please contact me and we can see exactly how the market has affected your home value.

Your Ottawa Real Estate Professional

Sorin Vaduva

613-262-9562

sorin@capitalrealestate.ca

www.soldbysorin.com

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