Thoughts on Ottawa’s Current Real Estate Market

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Published October 27, 2021

B
Carole here! I heard recently about a cashier in a retail store that was harassed and screamed at. The cashier was being accused of personally being responsible for store shelves inventory being low. The cashier was being held responsible for the store’s inability to provide items which were sitting in a cargo ship somewhere or in a plant waiting for a computer chip. The cashier was also responsible for the price increases due to demand out-weighing supply.

So who is to blame for housing prices?

Recently realtors have been touted as being solely responsible for the increase in housing prices. I watch, as almost monthly now, a new type of company, with a wonderfully creative business plan, claiming to be the answer to increasing prices appears on the scene. Unfortunately none of these companies do anything to answer the underlying cause of housing price increases… LACK OF SUPPLY.  

Yes the Barb & Carole team are proud of the fact that our sellers have gotten good sale prices on their homes. We work hard in promoting each property and showing each at their best. But are we responsible for the increase in the average cost of a house in Ottawa increasing dramatically this past year? No we are not.

What happens next?

Yes we are responsible for attracting maximum attention to each property, exposing it to as many potential purchasers as possible and negotiating a good price on each house. But when the current supply increases (with new homes being built, people down-sizing into retirement or adult rental units, or with current rentals being removed from the rental market and converted to a non-rental property) it is my humble opinion that the dramatic price increases will level out. Will they go down? Not likely. But the extreme increases should plateau.

These past few weeks have allowed us to witness the market start to revert to its old ways with far fewer bidding wars, prices closer to or below asking price in most instances, and a predictability of market activity. Most Realtors welcome this trend and we are definitely those Realtors. 
 
The moral of the story….do not blame the cashier for that laptop not being on the shelf or for the price of the one on the shelf. And do not blame the realtor for the prices of houses. High housing prices…this too shall pass.

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