Supply scarcity and accelerating demand characterized Ottawa’s housing market during the first quarter of the year, but these were not enough to ensure the segment’s strength during the coronavirus pandemic.
“Until mid-March, about 60% of our listings were seeing multiple offers. The first quarter of 2020 was the extension of a seller’s market that began 18 months ago,” said John Rogan, Royal LePage Performance Realty broker of record. “The impact of the coronavirus on Ottawa’s real estate market was quick and only those who had to buy and sell remain active.”
A recent analysis by Royal LePage said that the aggregate housing price in Ottawa stood at $502,808 as of the end of Q1, having increased by 8% annually.
The greatest gain was seen in the bungalow sector, which posted 12% year-over-year growth to $519,827. Condo units had a respectable 8.1% increase to a $343,998 average, while two-storey home prices went up by 6.9% annually to $526,584.
Year-end growth of the market’s average home price might be on the order of 2.5% (up to $506,500) should the regional economy restart by the end of Q2. Meanwhile, housing values will likely remain flat at $494,100 if the impact of the outbreak lasts up to late summer.
“There are many unknowns about the long-term economic impact of COVID-19 on real estate. However, low inventory is supportive of home price appreciation, or at least home price stability. While we are not expecting to see 2019 price gains this year, at this stage it’s not likely that prices will notably decline either,” Rogan said.