In this post I will explore the rise of active listings and what that means for the Ottawa real estate market.
There has been a rise in residential active listings of 30-50% depending on the area. What does that mean for the Ottawa real estate market going forward? Is this a sign of the market turning?
First I will start of by saying that the number of active listings was at an all time low at the start of 2021. Looking at the chart below (green line) it is normal and expected for active listings to start going up in January and peak around May/June. This is predictable and happens every year.
Looking at the blue line below (months of inventory), this indicator is still falling. This means that even though active listings are rising, buyer demand is rising at a higher pace. At less than 1 month of inventory for residential properties this is still in extreme seller’s market territory.
From my personal experience I would say the market has gone from unsustainable strong buyer demand in January-March to very strong buyer demand in April.
The second point I want to talk about is the normal rise of buyer demand starting in January and peaking in May every year. Looking at the green line below, buyer demand consistently starts to rise in January and peaks in May. This is closely correlated to the rise in active listings starting in January and also peaking in May.
In conclusion, I see no indication that the Ottawa market is turning anytime soon.
The 0.5% rise in mortgage rates has had no significant effect on the market and neither has the uptick in the stress test. The federal budget that came out yesterday had nothing substantial that will slow down this market.
I am always happy and available to answer any real estate questions you may have. I am also happy to take suggestions for future blog posts. Please feel free to contact me at 613.263.7883 or email me at firstname.lastname@example.org.
Full disclosure: The above post is simply my opinion based on the data that I have access to. My opinions are my own and should not be taken as predictions.
*All data and charts are sourced from the Ottawa Real Estate Board