For homeowners looking to sell their homes in the city of Ottawa, the future looks bright. You’ve probably heard about the city’s low inventory. For that reason, the Ottawa real estate market will become a very hot market in the months to come. If you live in the city and want to sell, now’s the time to pay attention and reach out to a real estate agent to discuss your opportunities.
A Fever Pitch: The Ontario Real Estate Market is Still Hot
Even during the COVID-19 pandemic, the Ontario real estate market boomed and that growth will continue. The Candian Real Estate Association expects the average house price in Ontario to grow by 11%.
Toronto remains the priciest market. The Toronto Regional Real Estate Board (TRREB) released its numbers for December 2021, revealing the city’s average selling price of $1,157,849. That’s a 24% year-over-year increase from December 2020.
Of course, there’s the provincial housing shortage. The provincial government has pledged to build 1.5 million homes in the next ten years to counteract inventory shortages in the Ontario real estate market. Now, the Ottawa real estate market it’s at the forefront of the drought, which is prime for sellers.
A Deeper Look Into Why Ottawa Real Estate Churns
Ottawa’s looming sales frenzy boils down to a real estate 101: supply and demand. Low supplies, or a low inventory, drives the price of homes upward especially when the need for these homes is high. When inventories decline, and demand increases, sellers and buyers often engage in bidding wars. If you’ve been watching real estate headlines over the past year or so, you’re no stranger to bidding wars.
The Ottawa real estate market has been marked by a low inventory and high demand for homes for more than a year. The city’s inventory shortage is at a 10-year low. Also, the city’s booming economy seems to be attracting prospective homebuyers who are willing to engage in bidding wars. Additionally, house prices in the Ottawa real estate market have reached a new peak average of $698,300. It’s clear that sellers may see significant returns if they sell in 2022.
Sales data for the Ottawa real estate market in 2021 also supports the notion that a seller’s frenzy is imminent. The average price of houses for sale in Ottawa jumped by 23.6% from 2020 to 2021 to reach the new Peak. The average cost of condos for sale in Ottawa – $419683 -represents a 16.1% increase from 2020.
Should Ottawa Sellers Get a Home Appraisal?
Let’s briefly revisit the new average for houses for sale in Ottawa, $719,605. You might assume that your house’s value hovers somewhere around this number. It’s a fair assumption to make but not a wise one because the average value is just that – an average. It doesn’t represent the actual value of your house.
That’s why you should speak to your listing agent about getting a home appraisal. It’s true that you can always adjust your sales price to accommodate buyers’ needs. However, it’s better to list a price that’s closer to your home value right off the bat, so you don’t struggle to sell your home to apprehensive buyers. Working with a real estate agent can help you navigate the nuances of this hot Ontario real estate market.
A home appraisal determines your home’s value based on factors such as location, amenities, size and overall condition. Of course, the value of your home isn’t fixed since activities such as renovations and remodelling can increase the value of the house. Your real estate agent will play a significant role in a home appraisal, so it’s wise to ask them questions or voice any concerns you may have.
Non-Real Estate Reasons for the Ottawa Real Estate Boom
The appeal of living in Ottawa goes beyond real estate demand, however. The city has become a hub and a hotbed for numerous industries and interests for people of all backgrounds. It’s starting to rival the diversity and vibrance of bigger cities like Toronto, Montreal, and Vancouver. It’s much more than just the home for Parliament. Ottawa is attracting a vast array of people who, of course, are looking to become homeowners and for good reason.
The Appeal of Ottawa and Its Relation to Real Estate
- Multicultural Hotspot – Ottawa is the second most popular destination for immigrants to Ontario, attracting significant populations from Asia, The Middle East, Africa and Europe.
- Knowledge-Based Economic Hub – Ottawa is Canada’s leading city regarding knowledge-based employment. Around 26.4% of the city’s jobs are in the knowledge-based sector, including software development, aerospace and defence and telecommunications.
- Vibrant Art & Culture Scene – Ottawa is home to over 100 annual events and festivals and has turned into a center for music, museums and galleries and much more.
- Dynamic Sports & Recreation Scene – Ottawa is also a hub for sports and recreation being home to the household team names like the Ottawa Senators. However, the city is also a home for amateur sports programs for those who love soccer, basketball, track and field and more.
Capitalize on the Ottawa Real Estate Opportunity
Ottawa is slowly starting to resemble its larger counterparts, such as Toronto, where there’s lots of action and opportunity. It’s giving people the incentive to move to the city and buy homes here, both new and existing ones.
Of course, that’s going to mean lots of opportunities for those who want to sell. If you are looking to cash in on the imminent selling frenzy, then speak to an Ottawa real estate agent to determine what the best course of action is to sell. They’ll advise you on how to get the most out of a sale so that you earn every cent that your home is worth.
Are you looking to sell a house or condo soon? Get in touch with a Zoocasa real estate agent to list your property on the market today!