When Covid-19 started spreading near the end of 2019, the Ottawa housing market wasn’t that different from a housing market in any other major North American city.
Since then, however, it has virtually exploded, with buyers eager to get their hands on as much real estate as they can and sellers delighting in the value their properties have accumulated.
Ottawa Has Experienced a 63% Surge in Property Values
Ottawa homes for sale faced a price surge of 63%, boosting the values of homes to levels they’d never reached before. Although it’s normal for property prices to grow during the year, this was unprecedented.
Many things led to this happening, from bidding wars to fewer homes being available and buyers that were so heated that many homes flew off the market the same week or even the day they made it onto the market. But what caused this? Below, we’ll run through some of the factors that led to the major changes to Ottawa’s real estate market in the last few years.
More Bidding Wars
Bidding wars are something that the average home doesn’t often see, yet they were erupting wildly all over Ottawa. In a white-hot sellers’ market like the one the city saw in 2021, bidding wars were an eventuality.
This raised the value of homes higher and made it as homeowners, upon seeing properties similar to theirs selling up to $60,000 standard asking price, realized that they too could get a better price for their homes.
Fewer Houses Available
Fewer homes were available in 2021, mainly as a result of construction pauses and issues in the materials supply chain. This means that houses that were still being built could not be finished for the most of the year. This in turn helped increase the value of preexisting homes.
Buyers who got in early have been able to see their investment pay off many times over, and that demand for property in Ottawa doesn’t look to be letting up anytime soon.
During the beginning of the pandemic, many people gained a fresh perspective on how important having a place to call their own really is. This, combined with fewer homes being available, led to an already booming market raising even higher in value.
Supply and demand have made it so that homes aren’t staying on the market for long, so many are buying property as soon as they get the opportunity. Suffice to say, if you find a house for sale in Ottawa, it’s a good idea to buy it now, because it may not be on the market for long.
The Rise Ottawa Property Values is Expect to Continue
Although it’s the capital city, and growth in the value of properties is expected, the last couple of years have been mindblowing for real estate in Ottawa. Not only are prices rising quickly, but homes flying off the market almost immediately.
Currently, it’s not clear how long this will continue, but some experts believe prices will continue to rise through 2022. For those looking to sell property in Ottawa, there’s never been a better time than now. For those looking to buy, it’s better to get in the market sooner rather than later, otherwise you could find it a lot more difficult to find any properties at all.