2021 was an unpredictable and unusual year in many ways.

That uncertainty was clearly reflected in the instability of numerous markets, including real estate.

The Canadian real estate market will likely hold records for quite some time.

While the market was not as volatile as it was in 2020, it was nonetheless a historic and record-breaking year in many aspects.

Constant demand

While there was far less fluctuation in the demand for homes this year, there was no shortage of eager buyers. In fact, demand was so strong that houses were effectively being snatched off the market as soon as they became available.

We personally noticed a decrease in competition throughout the year in the Ottawa area. Early in the year, buyers often had to compete with numerous offers. That changed towards the end of the year.  Yet, at the same time, listings tended not to last too long on MLS.

What did change, however, was the amount of supply. There have only been 4 months in recorded history where the number of houses for resale in Canada dipped below 2 months worth of inventory. All 4 of those months were in 2021.

The prediction for next year is that there will be many more buyers waiting for the opportunity to purchase a new home who simply couldn’t find anything this year because of the lack of supply.

It seems that those who have a good home don’t want to part with it, and those who don’t are desperate to find one.

A record year

Since the pandemic hit, we have witnessed a record number of people moving in response to the constant and unexpected changes that it brought.

This will be the highest sales year in Canadian real estate history, with an estimated 668,000 houses trading hands. That is 21% more than in 2020 (but it is worth remembering that large portions of 2020 saw virtually no sales due to lockdowns). The total number of sales will be higher than previously predicted as this last quarter we witnessed a surprising uptick in activity.

The annual average house price nationally will be about $687,500. This is also a 21% increase over last year’s numbers. In September, Ottawa’s average house price was at $644,000, up 19% from 2020’s average.

Settling out

What the end of this year has shown us is that activity is dropping, but demand will continue to stay strong in the coming months. And, with no quick long-term solutions to housing shortages, this could continue for a while. Sales will likely drop but not return to regular levels just yet.