RE/MAX 2021- Housing Affordability Outlook

Re/Max Canada - July 2021  - below is a great summary of their findings: 

As a rule of thumb one's monthly mortgage payment should not be more than 30% of their total monthly income for a mortgage.

OTTAWA continues to be a good option for those seeking housing affordability in Ontario – particularly first-time homebuyers­­­, despite the 20% uptick in prices from 2020 to 2021.

Ottawa condos have become the most popular type of property among first-time homebuyers in 2021, which has shifted from pre-pandemic, when the most popular home type among first-timers was freehold townhomes. However, given the price increase, buyers are now gravitating toward the condo market, with two-bedroom units being in higher demand. Typically, buyers in Ottawa are willing to push their budgets modestly to attain the home they desire.

When it comes to factors that are influencing affordability in the region, most likely to improve affordability are economic/employment conditions; continued interest in larger homes; business re-openings; and returning regional interest given the increase in recreational activity opportunities. On the flip-side, returning immigration numbers; low or diminishing housing supply; out-of-province/out-of-region buyers; and tightened mortgage lending rules could negatively impact affordability in the area.

The three most affordable neighbourhoods in Ottawa include Orleans, the Downtown Core and Nepean. The least affordable neighbourhoods are Manotick, Kanata and Stittsville, which offer more luxury properties with waterfront access.

Some alternatives to individual home ownership that have become relevant in Ottawa since the start of 2021 include pooling finances with friends or family to purchase a property, and buying a property that is lived-in by the owner while also being partially rented to supplement monthly payments.

Ottawa is still considered an affordable city and current homeowners enjoyed seeing their property values grow over the past year. However, first-time homebuyers have fears that they might not be able to afford to enter the market. Most properties in Ottawa are still seeing multiple offers due to limited inventory, but compared to the beginning of the year, properties are now selling closer to the listing price. It is not expected that Ottawa will see the cooling of house prices in the fall and winter of 2021, due to continued limited supply. The entry level price for home in Ottawa begins at $300,000.

2021 Market Report

Check out Re/Max Hallmark Realty Group's - 2021 Market Report