Looking towards the end of the pandemic
Thanks to the COVID-19 pandemic, 2020 was a historic year that has changed the course of our future – including the future of real estate. What can we expect?
- Space: the new luxury
As more Canadians are turning to permanently working from home, living in urban metropolises is no longer a popular choice. Not surprisingly, people are opting to leave behind traffic jams, overcrowding and urban pollution for fresh air, accessible green space, and ample room to raise their families. Lower prices are also a driving factor as people leave en masse from the city to the country. The demand for housing in suburbs, smaller cities, and rural areas is expected to strengthen. However, this trend will revert sharply if businesses demand their employees to work on-location.
- A decrease in inventory, an increase in prices
Despite rising unemployment rates and shuttering of businesses, the COVID-19 pandemic has fuelled a rally in Canadian home prices. Real estate is still seen as an investment, and because of this, the typical Canadian city is likely to have a tight supply of properties. The result: a sharp drive upwards in price. Now that Canadians are moving from urban centres to smaller cities, the pressure of real estate prices will increase throughout the country.
- Rising mortgage rates
With the increasing real estate prices, it is natural that mortgage rates will follow suit. The cost of borrowing has declined sharply during the pandemic. Today’s attractive interest rates – which are as low as 1% – are the result of banks aggressively trying to keep their numbers up. However, these rates will not be able to sustainably remain stable throughout the course of an entire mortgage. People are rushing to buy properties to take advantage of these historically low rates while they can.
- Immigration trends
Thanks to the pandemic, landlords are losing three critical types of tenants: students, travellers and immigrants. However, this loss is expected to be only temporary. By the end of the year the government is committing to over 370,000 immigrants. As the pandemic ameliorates, Canada will see a return in normalcy for travellers and students – resulting in renters once again flooding the market.
Whether you are looking to buy or sell property in the Greater Ottawa Area, it is critical that you have a real estate agent on your side who understands your needs. Adam Mills and his team have been in business for over ten years and have a proven track record for success. Our team is comprised of knowledgeable and experienced professionals who are happy to help you navigate the ever-changing Ottawa real estate market. Please contact us at 613-825-7653 or email us at firstname.lastname@example.org for more information or help with your relocation.