October 2021 new-home sales for Ottawa may have been up, but overall for the year sales are the lowest they’ve been in five years, according to the latest report prepared by industry analyst PMA Brethour Realty for the Greater Ottawa Home Builders’ Association.
That suggests the Ottawa market is slowly stabilizing, says PMA’s Ottawa president, Cheryl Rice.
New-home sales in October were 456, up 1.8 per cent compared to October 2020, when 448 homes were sold. October 2021 sales were also up 32.9 per cent from last month when sales were at 343.
“New product releases over September and October helped fuel a significant increase in October new-home sales compared to the previous month, and there is also a seasonal factor as fall tends to be a busier month for builders,” says Rice. “This contrasts with the summer months when fewer builders were bringing fewer lots to market.”
Mattamy had a good month overall, capturing 22 per cent of the market.
Down for the year
For the year to date, sales were 3,990, down 23.7 per cent compared to last year’s 5,226 sales, PMA says.
“Year-to-date October new-home sales are the lowest they’ve been in the past five years,” Rice says, adding that 2019 and 2020, which had the highest sales, were “exceptional years, both driven by significant pent-up demand pre- and post-COVID-19. That trend was carried into the first quarter of 2021 with a buying frenzy that ultimately increased new-home prices to new heights.”
The Ottawa market is slowly stabilizing, largely due to new-home prices hitting a ceiling that buyers can no longer afford, she says. “Buyers backed off, inventory of newly released unsold product increased and builders started to pump the brakes on price increases.
“Supply and demand are starting to find an equilibrium, but we’re not out of the woods yet as we’re still well into a seller’s market and the trend to stabilization can change very quickly.”