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 kiril@sutton.com.

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.