Ottawa's Real Estate Inventory Count Is Low, Very Low!

Yes, 2020 was a chaotic year leaving us with many questions on so many levels. Due to COVID Many have lost their lives, lost jobs, lost their businesses due to closures, it has been terrible for so many around the world. Ottawa's real estate market is one that has seen very fast growth. In September 2020 Ottawa saw a total of 46% more sales than in 2019. Homes were selling and they were selling quickly. Ottawa was clearly in a seller's market with many buyers having to compete against other buyers in multiple offer situations. What caused this? Many things brought this rapid rise in home prices but we can most simply explain it by the market not having enough supply of homes for the number of buyers that were in the market to purchase.

The scarcity of homes was making people pay over the asking price, making sometimes unconditional offers and hoping to win the property. Below is a table showing over the last 5 years, the level of inventory found each month. In 2016 we saw an average of 13,450 homes listed for sale on the MLS. Now, 5 years later in 2020 an average of 5,077 homes were listed. This is 37% less active listings in just 5 years.

Inventory levels in Ottawa have been dropping steadily if we look at the City as a whole. Looking closer at December 2020 we can see inventory was standing at only 3,540 units. What we have to remember is that many of these units are homes for rent and not homes available to purchase today. Be sure to read my other blog pertaining to inventory count looking at both the rentals and properties available to purchase. If you would like to discuss the sale of your home, condo or investment property in greater detail call or text 613-889-7732. I'd be happy to advise on the sale and discuss specific neighbourhood trends or property type. We have seen however certain trends such as an increase in the inventory of rental units that are available as well as a residential condo unit in the downtown core of the City. 

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