We are now in the last quarter of 2020’s housing market and our Ottawa mortgage broker team has been working hard to find the best mortgage options for the current market conditions. COVID-19 is still with us, unfortunately, and having an impact in some areas. But it hasn’t slowed down Ottawa’s hot market.
Housing Market Update for October 2020
In most cities around Canada, we are seeing home prices going up even with COVID-19’s devastating effects on the economy and markets that are resource-based struggling. Canada’s hottest market where new builds are concerned is Ottawa. We saw new home prices rise by 5.3% between the months of February and August as a result of a low inventory supply and a high demand.
A lot of home buyers are looking at buying new-build homes rather than having to compete with the multiple offers of existing homes, where they may end up paying well above the asking price. We’ve also seen many investors looking towards Ottawa as an alternative to Vancouver and Toronto due to the Foreign Buyer Tax still being in place. Adding to this is the historically low-interest rates, which has created a very strong market for the Capitol of the nation.
Ottawa Market Figures
Currently, Ottawa housing sold prices are at $784K. This is up 59.8% from last month, 54.2% from last quarter, and up 93.1% from this time last year. Currently, the inventory for new listings in the past 56 days is 34, with 6 homes selling in that timeframe. The average home spends about 33 days on the market with a 99% selling to list price ratio.
Oshawa Market Figures
In nearby Oshawa, we are seeing the average selling price of homes at $624K. This is up 0.1% from last month, up 3.2% from last quarter, and up 22.2% from this time last year. In the past 28 days, 456 new home listings have hit the market with 369 of those selling in an average of 11 days at a 105% selling to list price ratio.
Whitby / Williamsburgh Market Figures
In the Whitby area, homes are selling for an average of $860K. This figure is up 0.2% from last month, up 5.6% from last quarter, and up 21.7% from this time last year. Housing inventory has seen 66 new listings over the past 56 days, with 49 homes being sold. Homes are spending an average of 14 days on the market and have a 102% selling to list price ratio.
It Depends On Where You Look
Many buyers are looking for housing in cities that are near urban centers. Areas that have been particularly strong where a rise in house prices are concerned are Kelowna, with a 1.3% rise, Guelph, with a 2.9% rise, Kitchener-Cambridge-Waterloo, with a 3.2% rise, and Hamilton, with a 3.3% rise.
If you are looking for more affordable options, you can find home prices are falling in a few areas. Calgary has seen a 1.1% drop in home prices, Regina a 1.0% drop, St, John’s a 0.51% drop, and Edmonton a 0.3% drop.
The housing price boom in Ottawa and surrounding areas isn’t making it easy to get into the market for first time home buyers, with many parents co-signing Ottawa mortgages or gifting down payments to help get their adult children on the property ladder.
Experts looking ahead believe that prices will start to slowly fall and level off as we move into 2021, with many areas still remaining a seller’s market. It’s a good time to seel if you live in a hot area and are looking to move into an area with lower home prices, for example selling up in Ottawa and buying in an area like Morrisburg where home prices are lower.
If you want to see what current Ottawa mortgage rates are at for your area, give our Ottawa mortgage broker team a call today!
