There is good news to report on several fronts from the Ottawa area’s resale market in March of 2018, including increases in units sold and average prices for the month, and a decrease in the average number of days properties are on the market, the Ottawa Real Estate Board has announced.
In a news release, the Board reports that its members sold 1,660 residential properties in March, up from 1,478 in March of 2017. That’s an increase of 12.3 per cent. It’s also above the five-year average for March sales in our area, which is 1,339.
Of the 1,660 properties sold by Board members in March, 1302 were in the residential property class, and 358 were condominium units, the Board reports.
Continuing a trend we’ve seen lately in the Ottawa market, “inventory continues to fall below normal average, but we are still seeing more sales than last year because listings are not staying on the market,” says Ralph Shaw, President of the Ottawa Real Estate Board, in the news release.
“Properties that are priced well are selling quickly, with days on market dropping to an average of 43 days from an average of 54 days on market in March of 2017,” he says.
As for prices, there is good news as well. The average sale price of a residential-class property sold in March in our area was $447,561. That’s an increase of 8 per cent over the average sale price in March of 2017.
On the condo market, the average sale price of a condominium-class property in March was $275,592. That’s an increase of 0.7 per cent over the average price in March of 2017.
The Ottawa Real Estate Board cautions that although the average sale price for a specific month can be useful in establishing trends over time, it should not be used as an indicator that specific properties have increased or decreased in value. As with any city, prices and conditions will vary from neighbourhood to neighbourhood.
“Overall, as a result of the stable pricing in the condominium market and reasonable increases of 8 per cent in the residential market, Ottawa continues to be a healthy and vibrant real estate market,” Ralph Shaw adds.
The new Ottawa numbers are another reminder of how fortunate Ottawa-area buyers are compared with buyers in Toronto, where first-time buyers in particular are struggling to enter the market.
Although the Toronto Real Estate Board reported that average prices in the Toronto area are down from March of 2017, they still remain significantly higher than average prices in Ottawa.
The Toronto Board reports that the average sale price of a home in the city of Toronto in March was $817,642. In the larger GTA area, the average sale price was $784,558.
So if you’re buying in the Ottawa area, your dollar will go much further than it would in the Toronto area.
Looking at Ottawa’s March sales numbers more closely, for example, the Board reports that the most active price point the residential home market was for houses between $300,000 and $449,999. Homes in that range accounted for 46 per cent of the homes sold in March.
Homes in the $500,000 to $750,000 range showed robust growth, making up 21 per cent of the residential homes that sold in March, the Board reports.
In condo sales, units priced in the $175,000 to $274,900 range accounted for a full 51 per cent of the condo market. If you are a first-time buyer, as condo buyers often are, this means you have a lot of choice in this price range.
Ralph Shaw says that many renters have decided to purchase a condo in recent months because of the combination of low rental inventory in the Ottawa area and low interest rates.
If you’re considering buying or selling property in the Ottawa area as we enter the busy spring-summer selling season, I’d love to chat with you about the current market and the expertise I offer, with more than 30 years of experience as a Realtor in our region.