Top 3 Findings from the Engel & Völkers 2021 Market Report

The Engel & Völkers End of Year Market Report for 2021 has been released, highlighting notable trends, changing buyer and seller preferences, economic factors, and more. We have put together our top three takeaways that we believe are indicative of what we can expect in the year ahead. 

1. Interprovincial Migration Fueled by Canadians ‘Going Home’. In 2021, there was a major influx of Canadians returning to their hometowns amid COVID. Over the last year, more people have shown that they want to be closer to their families–so much so that the trend of multi-generational living is rising. According to Statistics Canada, multi-generational households have become the fastest-growing segment in the housing market. 

2. Interest Rates Should Hold Until Mid-2022. Over the last couple of years, the Bank of Canada had historically low-interest rates leading to buyers being able to leverage their assets and move up in the real estate market. The Bank of Canada announced in the fall of 2021 that it would be raising interest rates, however, in light of the recent wave, they have put a pause on this increase. Now the Bank of Canada does not anticipate raising the interest rates until mid-2022.

3. Supply Crisis in Canada. The shortage in supply in homes throughout 2021 caused some unforeseen trends to emerge. Many buyers began to settle for homes that did not meet their hopes and expectations. This caused many bidding wars, some in areas where it is less common. Some premium homeowners opted for transformational renovations to meet their needs as opposed to looking for something new. The supply crisis has been the leading cause of rapidly increasing home prices, and it will continue to do so until the supply and demand equalize.

Overall, we have seen many changes in the real estate market over the last year and we will continue to monitor developments in 2022. If you would like to read more on these findings, we would be pleased to send you a copy of the Engel & Völkers End of Year Market Report. If you have any other questions or would like to chat about Ottawa’s real estate market we would be happy to connect with you!