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As the capital of Canada, Ottawa has always been a desirable location for home buyers and investors alike. In recent years, the Ottawa real estate market has seen steady growth and stability, with a strong demand for both commercial and residential properties. With the current economic climate and changing demographics, it’s natural to wonder what the future holds for the Ottawa real estate market. In this article, we will take an in-depth look at the forecast and predictions for the Ottawa real estate market in 2023.
The Current State of the Ottawa Real Estate Market
Before we dive into the future predictions, let’s take a closer look at the current state of the Ottawa real estate market. According to the Ottawa Real Estate Board, the average residential sale price in Ottawa reached $591,413 in August 2021, up 14% from the previous year. The number of properties sold also increased by 7%, indicating a strong demand for homes in the area.
Another factor contributing to the current state of the Ottawa real estate market is the low inventory of available properties. The number of active listings in August 2021 was down 30% compared to the same month in 2020. This has created a competitive market where buyers are having to act quickly to secure their desired property.
Overall, the current state of the Ottawa real estate market is characterized by high demand and low inventory, resulting in rising prices and a competitive market for buyers.
Predictions for the Ottawa Real Estate Market in 2023
Population Growth and Demographics
One of the main factors that will influence the Ottawa real estate market in 2023 is population growth and changing demographics. According to Ottawa’s official plan, the city’s population is expected to reach 1.4 million by 2046, up from approximately 1.03 million in 2021. This population growth is expected to be driven by international immigration, natural population growth, and interprovincial migration.
As the population grows, so will the demand for housing. In particular, there is expected to be an increased demand for affordable housing options for younger generations and seniors. The city of Ottawa has identified affordable housing as a key priority and is working on initiatives to increase the supply of affordable housing in the city.
Interest Rates and Mortgage Rules
Another factor that will influence the Ottawa real estate market in 2023 is interest rates and mortgage rules. The Bank of Canada has indicated that interest rates are likely to remain low for the foreseeable future, which will continue to support the housing market.
However, mortgage rules may become stricter in the coming years. The Office of the Superintendent of Financial Institutions (OSFI) has proposed changes to the mortgage stress test, which could make it more difficult for some buyers to qualify for a mortgage. If these changes are implemented, it could reduce the number of buyers in the market and potentially slow down the demand for housing.
Supply and Demand
Supply and demand are always key factors in any real estate market, and the Ottawa market is no exception. As mentioned earlier, the current state of the market is characterized by low inventory and high demand. While this trend is expected to continue in the short term, there are some indications that the supply of housing may increase in the coming years.
According to the Canada Mortgage and Housing Corporation (CMHC), the number of housing starts in Ottawa is expected to increase in the coming years, reaching 9,600 in 2023. This increase in supply could help to alleviate some of the pressure on the market and create more balanced conditions for buyers and sellers.
Commercial Real Estate
Finally, it’s worth noting that the Ottawa real estate market is not just about residential properties. The commercial real estate market is also an important part of the city’s economy and is expected to see growth in the coming years.
In particular, the technology sector is a driving force behind the commercial real estate market in Ottawa. As one of the fastest-growing tech hubs in Canada, Ottawa is attracting more and more businesses in the tech industry. This has created a demand for office space and other commercial properties, which is expected to continue in the coming years.
Conclusion
Overall, the Ottawa real estate market is expected to remain strong and steady in the coming years. Population growth, interest rates, mortgage rules, supply and demand, and the commercial real estate market will all play a role in shaping the market in 2023 and beyond. While there may be some challenges ahead, there are also opportunities for both buyers and sellers in the Ottawa real estate market.
People also ask
What is the average house price in Ottawa?
The average residential sale price in Ottawa reached $591,413 in August 2021, according to the Ottawa Real Estate Board.
Is the Ottawa real estate market a buyer’s or seller’s market?
The current state of the Ottawa real estate market is characterized by low inventory and high demand, creating a competitive market for buyers. However, this could change in the coming years as the supply of housing is expected to increase.
What is the population growth forecast for Ottawa?
Ottawa’s official plan forecasts a population of 1.4 million by 2046, up from approximately 1.03 million in 2021.
