Is this what a housing bubble looks like?
In the midst of a pandemic, with employment levels down more than 60,000, Ottawa residential resale properties sold for an average $585,000 in July — up 20 per cent compared with the same month a year ago. The condo market, too, was sizzling, with average sale prices of nearly $358,000. This was a 19.4 per cent gain from July 2019. This, according to sales data compiled by the Ottawa Real Estate Board.
The biggest factor driving up prices is a shortage of listings, which in July were down 55 per cent year over year for residential properties and 37 per cent for condominiums.
Oddly enough, the pandemic itself is also a catalyst. The biggest increases have been in the $700,000 plus range says Chelsea Hamre, a sales representative for ReMax Affiliates Realty. “People have been asking themselves where they want to be if this (virus) hits again, if we see a second wave,” she says. “They want more space for home offices, and bigger backyards,” she adds.