The current shortage of “unsustainable” housing supply, warns the president of OREB

The city’s tight supply of housing is “unsustainable” if a more balanced market is to be achieved over the next few months, the head of the Ottawa Real Estate Board warned on Friday as house prices rose by 19% in November compared to the previous year.

The mid-class residential home sold for $ 716,992 last month, up from just over $ 600,000 in November 2020, the board said. The average price of condominiums, meanwhile, hit $ 432,099, down from about $ 361,000 a year earlier.

While noting that month-over-month price increases have “eased slightly” – last month’s average residential prices were comparable to October, while condo prices rose 7% per year. compared to the previous month – OREB President Debra Wright said the supply crunch driving up house prices is still a major concern for the industry.

“This is a much better situation than the monthly price increases we saw in the first quarter of 2021,” Wright said in a statement. “However, there is no doubt that supply constraints will continue to put upward pressure on prices until this is corrected.”

OREB said 1,430 new listings were launched on the market last month, down from 1,960 in October and 13% below the November 2020 total.

Wright warned that a month’s current supply of home inventory “is well below what it should be” to meet demand.

November sales down

“While there are still some 30 units above the five-year listing average, this is simply not sustainable and takes us further away from the balanced market which will provide much needed relief to potential buyers. “, she added.

OREB members sold 1,459 residential properties in November, up from 1,605 a year earlier.

But Wright argued that the 2020 numbers were skewed because the peak in sales shifted later in the year due to the pandemic. She said November sales were up 14% from 2019, “a more relevant base year for comparison.”

Wright said last month’s numbers should not be taken as a sign of a slowing market, noting that the number of properties that changed hands in November was still 8% above the five-year average of 1,348.

“And we’re also seeing an 8% increase in year-to-date sales compared to 2020, so it’s fair to say that the resale market remains active and vibrant,” she said.

Real estate firm Re / Max said earlier this week that it expects the city’s available housing stock to increase somewhat in 2022, prompting it to expect smaller price increases in the months to come. to come.

Source link

About Bob C. Zoller

Check Also

Chicago-area mom shares struggle to find formula despite supply shortage – NBC Chicago

It’s been a stressful time for Aisha Hunt, a Chicago-area mother who has recently been …