There is good news about condo sales in the figures from the Ottawa Real Estate Board for our area for the month of July, continuing a rebound that we’ve been seeing since early this year.
The Real Estate Board has released sales numbers for July that show a strong month overall for all residential properties. Members of the Board sold 1,530 residential properties through the Multiple Listing Service system, up from 1,490 properties in July of 2016, or an increase of 2.7 %. It’s also above the five-year average for July sales, which is 1,446.
The sales for July included 332 in the condominium property class and 1,198 in the residential property class.
The average sale price of a residential-class property sold in July in the Ottawa area was $420,335, an increase of 5.3 per cent over the average price in July of 2016. The average sale price of a condominium-class property sold in July in the Ottawa area was $267.641, representing an increase of 2. 8 % over July of 2016.
The Real Estate Board cautions that while the average price in a specific month can be useful in establishing trends over time, the numbers should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold that month. Keep in mind that prices and conditions will vary from neighbourhood to neighbourhood.
As Rick Eisert, President of the Ottawa Real Estate Board says in the press release, “the Ottawa resale market continued its steady pace into mid-summer, with condo sales really bolstering the market this past month. We’ve actually been seeing this positive trend since February. The condo market has been in a slump for the past few years because it was overbuilt,” he says.
“Some owners who had difficulty selling their condos were renting them instead, thereby decreasing supply. Now as rental leases are coming due, combined with evidence of stronger condo sales, these owners are placing these units back on the market for sale. Meanwhile, residential sales have remained virtually the same in comparison to this time last year.”
The Real Estate Board reports that the number of new listings that came onto the market continues to be on the lower end of the five-year average, especially where residential units are concerned.
“Inventory levels continue to tighten, however the choice for buyers continues to be decent, with both entry-level properties and higher-end properties available, particularly in the condo market,” Rick Eisert says.
He says the cumulative days on the market has been “holding pretty steady throughout the course of 2017. However, when compared to numbers from 2016, residential properties in July of 2017 are selling almost 22 % faster and condos just over 11 per cent faster than July of last year.”
Interestingly, continuing a trend, Rick Eisert says “we continue to see an increase in the number of ‘lifestyle’ properties sold _ the $750,000-plus price range.”
While higher-end sales have been increasing, the two most active price points in the residential market continue to be the $300,000 to $399,999 range, followed by properties in the $400,000 to $499,999 range. Those two ranges combined accounted for 56.1 % of the market. For the condo market, the most active price point was between $150,000 and $249,999, making up 50.7 % of the condo market, the Board reported.
If you’re interesting buying or selling property in the Ottawa area, I’d love to chat with you about the current market and the services and knowledge I can offer, with more than 30 years as a realtor in the Ottawa area. You can reach me through my website, at nancybenson.com, where you can also view my current listings. You can also give me a call at 613-747-4747.