Kris Sherry's Blog

What’s Happening in the Ottawa Condo Market?

Posted on: March 10th, 2014 by Kris Sherry

In terms of new construction, with developers building new condo apartments left, right and centre – a very large 20% of completed units are sitting unsold.  In the resale market, the inventory has grown from 9% in 2011 to 17% in 2012 and then to 20% in 2013.

Units that have seen steady increases in value over the past few years are now experiencing declining prices – the average condo was 4.4% cheaper in 2013 than it was a year earlier.  The overall real estate landscape in Ottawa has moved from a strong sellers’ market into a balanced market.  CMHC senior analyst Sandra Perez Torres believes that this “cooling off period” will extend well into 2015.

John Herbert, executive director of the Greater Ottawa Home Builders’ Association, describes the outlook for 2014 as a “readjustment year”.  With Ottawa experiencing a 2.3% decline in employment in 2013 – and with cuts in the federal civil service – Ottawa may have finally reached the point where there will be an impact on the real estate market.  The impact is magnified in the condo market because it is that 45-64 age group most impacted by the employment squeeze – the exact demographic that has traditionally been buying condos.

This is, to say the least, unsettling if you are a condo owner – and even more unsettling if you are a condo owner who wishes to sell.  There is a lot of choice out there.  People are taking their time to buy and are very carefully looking at all that is available.

On the positive side, there is no denying the appeal of the condo lifestyle – the sense of community and the access to amenities, parks, etc.  Life is simplified.  Condo units that have been well maintained and that are well priced based on today’s market, are still selling.  You have to do your homework and you have to set appropriate expectations.

If you are looking to buy a condo – this is a great time to buy.  If you want to sell your condo, let’s talk about what it will take to do so.

Kris

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