I expect that by September the number of people that will be vaccinated in Ottawa will allow businesses to start calling employees back to the office.
With a large number of public sector and tech orientated employees in Ottawa I am expecting the back to office transition to start off slow and accelerate as we finish 2021 and then start 2022.
In this post I will explore the implications of this transition with respect to real estate in Ottawa.
Let’s have a look at what covid and WFH did to the real estate landscape in Ottawa.
- Everything with a common entrance was shunned and priced lower relative to private entrance properties.
- Space, home offices and backyards were coveted and properties that had those sold for a premium.
- The central bank cut interest rates and bought mortgage backed securities in order to stimulate the housing market and the overall economy.
- This was probably the most significant stimulus that the housing market reacted to.
- With more people sitting at home, disposable incomes skyrocketed (for those that still had jobs) and homebuyers started allocating more money towards their home purchases.
- Demand for rural and suburban homes went through the roof.
As people start heading back to the office, I see a few things re-adjusting.
- As traffic starts getting busier, travel time and travel costs will become significant again.
- Homes located near public transportation hubs will command a higher premium.
- Once we reach herd immunity, get back to the office and open up universities, condos should see more demand.
- A slow demand reversal from suburban and rural homes back to urban homes.
- This trend will take a few years in Ottawa. The federal government will be conservative in getting workers back in the office.
What does this mean for home owners and home buyers.
- If you are looking to buy a condo now may be a good time.
- If you are looking to sell a rural property, demand will probably decrease slowly going forward.
- If you are looking to buy near major transportation hubs, buying sooner rather than later is wise.
- The rate of price appreciation will probably slow.
- The federal government has achieved it’s goal to stimulate the economy via the housing market. Going forward the government will likely taper housing stimulus for political reasons.
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.