Ottawa Market Starts To Normalize
There is good news for buyers and for sellers in the numbers from Ottawa’s resale residential real estate market in June of 2021.
Average sale prices were up, but multiple offers and bidding frenzies were less common and there are signs the market is beginning to normalize after many months of favoring sellers.
The good news for sellers is that the average sale price of a residential-class property in June of 2021, at $725,970, was up 26% from the average sale price in June of 2020, the Ottawa Real Estate Board reports.
The average sale price of a condominium-class unit in June, at $435,198, was up 21% from June of last year.
As anyone who has been following Ottawa’s hot sellers’ market over the past year knows, these increases were typical of what we’ve seen this past year, with low inventory low and high demand often leading to multiple offers and many properties selling for over the asking price.
Looking at the first six months of 2021, the Board reported, the average sale price of residential-class property, at $734,357, was up 33% from the average price in the first six months of 2020.
The average sale price of a condo unit in the first six months of this year, at $422,734, was up 20% over the same period in 2020.
But there was also promising news in June’s numbers if you are hoping to buy a property, if trends continue.
“Properties are not moving as quickly as they were,” said Debra Wright, President of the Ottawa Real Estate Board, in a statement.
“Inventory has picked up. There is less scarcity and more choices, and consequently, less upward pressure on prices,” she said.
“Additionally, we are noticing fewer of the multiple-offer frenzy situations. Of course, many properties do still have multiple offers, but our Realtors are noticing that there are less of them on offer day.”
“For the moment, there are signs that we’ve reached a levelling out, especially as it relates to average prices, which, in recent months, have not experienced the drastic increases of earlier in 2021, nor are we seeing a drop.”
Debra Wright said these signs of a more balanced market represent “good news for buyers, while sellers are going to have to adjust to this new normal and be more strategic in their positioning. Whichever side of the transaction you are on, you will bode well by listening and heeding the advice of a professional Realtor, who has their pulse on the day-to-day variabilities Ottawa’s resale market is experiencing.”
She said the Board be watching Ottawa’s market closely over the summer to see if the positive developments for buyers continue.
While inventory levels for both residential units and condos in June were at their highest level since 2017, she said, “we are still at a one-month supply of housing stock, so we aren’t out of the woods yet.”
The Ottawa Board cautions, as it always does, that while average sale prices for a specific month can be useful in establishing trends over time, they “should not be taken 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.” As with any city, prices in Ottawa will vary from neighbourhood to neighbourhood.
If you’re considering buying or selling property in the Ottawa area, I’d love to chat with you about the current market and conditions in your area of the city. With more than 30 years of experience helping clients buy and sell in Ottawa, I know the city and its neighbourhoods well. I’ve assisted clients through a wide range of market conditions.