3 Lessons from the Engel & Völkers Market Report

Engel & Völkers just released their latest Canadian real estate market report, with findings about
how our market performed in the second half of 2020 as well as some forecasting for the
coming year. We have reviewed the report and picked our top three findings below!

1. Low interest rates drove activity—and will continue to do so. In October, the Bank of
Canada announced that it would likely maintain its overnight lending rate of 0.25% until 2023.
This historically low rate—first introduced in March—drove purchasing activity in Ottawa, which
maintained stable employment despite the pandemic. With borrowing remaining affordable for
the foreseeable future, Engel & Völkers anticipates the Ottawa market to continue its
momentum into 2021.

2. Canada’s condo market softened, but Ottawa remained mostly insulated. Canada’s
highest priced cities like Toronto and Vancouver experienced price drops in their condo
markets, as the appeal of living in an urban condo lost its lustre for many. However, while
Ottawa saw a slight rise in condo supply last year, overall sales of these units remained strong
and saw high year-over-year price growth.

3. 2020 saw an exodus to the outskirts, but that may reverse course in 2021. Real estate
transactions in the suburbs and cottage country experienced an unprecedented boom in
Canada, with buyers now working remotely deciding that more space was more important than
an urban location. However, Engel & Völkers is forecasting that while some may stay on the
outskirts, many will return to metro areas once the COVID-19 is distributed and dining out,
entertainment, and culture regain their appeal.

While COVID-19 provides uncertainty, Engel & Völkers is anticipating Ottawa real estate to
have another busy year. Would you like your own copy of the Engel & Völkers market report?
We would be happy to provide you one and discuss how its findings affect the coming year.