So as we enter into September, everyone gets back to school and winter, the last quarter of the year 2021. It's a perfect time to do a little market update. Let you guys know what's going on in the Ottawa Real Estate Market.

I like to start off and talk about townhomes because I know that's what most of you guys are looking into when you're looking at getting into the Ottawa real estate market. And you're happy to see that the average price has actually dropped from $572,000 in March down to $527,855 last month.

And so the big question on everybody's mind is what's going on with the bidding wars in Ottawa? So to answer that question, we can take a look at the average sold to ask ratio.

Taking a look at this, you'll see that when the real estate market really started to heat up in January, February, and March, when we saw the prices increase the most. We see the average shelf being about 102% asking all the way up to 111% of the asking price. Now we've seen that steadily decline back to the 102% of asking price. When taking a look at the average price of a detached home, you'll see that it also declined from March.

But you see last month it actually started to increase. And I know you're probably wondering, why is that you're starting to hear in the media that the prices are dropping, you're hearing around town that the Ottawa real estate market is slowing down. So why would the numbers actually increase from July to August? As we know, everything runs on supply and demand. And as the home prices went up so quickly this year, you saw a lot of buyers get out the price of homes, and a lot of sellers rushed the market to take advantage of the high prices. But now what we're starting to see is as these prices drop, less sellers are coming to the market and more buyers are starting to see they can afford a home that they couldn't before. So now what we're starting to see in the market is we see supply that has been raised start to drop and we see demand that had been low start to go up. What happens when that happens, you guess that the prices start to go up again. So what this next graph is going to show you is the average new listings per week, in the last three years.

As we know 2020 was a very off year where we saw the majority of sales shift from the spring into the summer-fall. But if we take a look at 2019 versus 2021, you'll see that we start to be more on-trend. When we take a look at the next graph, we'll see that even though the August numbers are very similar to July on average, we'll see the last couple of weeks we're seeing the prices start to increase already.

So just like a few months ago, when I was talking about how the prices were dropping out a lot, but all you could hear about in the media was how hot the real estate market was. I'm trying to give you guys an insight into what's going to happen before it happens.

So for those of you who are sitting on the sidelines, waiting for the right time to buy waiting for the market to crash, I'm sorry to say but it doesn't look like that's what's going to happen here. However, if you are looking to get into the market, now might be a good time to start looking before other people figure out what's going on. And before we see the market jumped back up again.

To really illustrate what's actually going on in the market. Let's take a look at these two graphs side by side,

if we take a look at the actual amount of inventory and number of active listings, you'll see that it's about half of what it was from 2019 and even less than that of the year before in 2018. So we have just as many sales happening with way less than half the inventory. There's a lot of things being said especially right now during the election of what they can do to slow down Canadian home prices. But the fact of the matter is it runs on supply and demand and we just do not have the supply.

So until we find a way to build a lot more homes a lot faster. We're going to continue to see the home prices rise.

I like to post these market updates once a month because it's something that I really like to follow every day. But any questions you guys have specifically about the market, you can always give me a call.