Ottawa Resale House Prices up 35% in May

The Ottawa resale real estate market in May continued to thrive, with sales far above May of 2020 and average sale prices up 35% for residential-class properties, despite the provincial lockdown.

In May of 2021, members of the Ottawa Real Estate Board sold 2,296 properties.

That’s above the five-year average for May transactions (which is 2,123), and it’s 71% over the 1,342 properties that were sold in May of 2020, when we were also under lockdown, the Ottawa Real Estate Board has announced.

“Although Ontario was in a lockdown in both May, 2020 and May, 2021, the impact they had on Ottawa’s resale market was quite different, with this year’s number of transactions well over the five-year average,” Board President Debra Wright said in a statement.

“Undoubtedly, enhanced safety measures and vaccine adoption rates have enabled potential buyers and sellers to feel more protected and comfortable in their home buying and selling process.”

The average sale price for a condominium-class property in May was $424,843. That’s an increase of 24% over the average sale price in May of 2020.

The average sale price for a residential-class property in May was $741,206. That’s up 35% from the average price in May of last year.

With the number of condo units sold in May up 85% over May of 2020, and the average price up 21%, Debra Wright says “it appears that the condo market has recovered from the declines experienced early in the pandemic.”

In a sign of the fast-rising prices we’ve seen in Ottawa over the past year, 46% of properties sold for more than $700,000 in May. That’s up from just 16% of properties in May of last year.

But Debra Wright also noted that month-over-month average price increases for April and May were not as high as the  jumps in value in the first three months of 2021.

“While it is still too early to predict, this may be a sign that the rapid price acceleration we have been experiencing is easing in the market,” Debra Wright said.

She said the Ottawa Board will be watching to see if market factors will bring Ottawa into a more balanced market, following the sellers’ market we’ve seen for many months.

These factors include “the effects of the increased (mortgage) stress test measures, combined with the average five-year fixed mortgage rates climbing back over two per cent since the beginning of 2021, and whether pent-up supply will decrease our supply shortage and bring Ottawa’s real estate market to a more balanced state,” she said.

The Ottawa Board cautions that average sale prices for a specific month can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. As with all cities, prices in Ottawa vary from neighbourhood to neighbourhood.

If you’re considering buying or selling property in the Ottawa area, I’d be happy to chat with you about the current market and conditions in your area of the city.

With more than 30 years of experience helping buyers and sellers in many market conditions, I know the city and its neighbourhoods well. I’ve helped many buyers succeed in challenging markets, including the hot sellers’ market we’re currently experiencing.

On my website, www.nancybenson.com, you can read more about me, view my listings and testimonials from clients, and read about the services we offer buyers and sellers.

Feel free to give me a call, at 613-747-4747.