The Ottawa re-sale housing market had an unusually busy July, with our region seeing its highest sales volume for the month in 15 years. July also saw an upsurge in new listings for the first time in 2019, the Ottawa Real Estate Board reported in its news release on sales for the month.
The average sale price for a residential-class property in July of 2019 in Ottawa was $487,308. That’s up 10.4 % over the average sale price in July of 2018.
The average sale price of a condominium-class property in our area in July was $299,665. That’s up 6.8 % from the average sale price in July of 2018, the Board reports.
The Board cautions that average sale prices for a specific month can be useful in establishing trends over time, they should not be used as an indicator that specific properties have increased or decreased in value. As with any city, prices and increases in Ottawa vary from neighbourhood to neighbourhood.
But the increase is good news to those who decided to enter the market a year ago rather than waiting to buy. It’s a reminder that properties often appreciate much better than other investments.
In July, members of the Ottawa Real Estate Board sold 1,842 residential properties through the Board’s Multiple Listing Service (MLS) System. That’s up 14.8 % from the 1,382 properties sold in July of 2018, and it’s the highest number of properties sold in our area in July in 15 years. The five-year average in our area for July sales is 1,579.
The 1,842 properties sold in July included 460 condominium units _ up 23 % from the number sold in July of 2018. The 1,382 properties sold in the residential-class category was an increase of 12.3 % from the number sold in July of last year.
“Typically, after a busy spring, July tends to be a slower month, as people take vacations and spend more time with their families, but there was no slowdown this past month,” said Dwight Delahunt, President of the Ottawa Real Estate Board, in the news release.
“Also, for the first time in 2019, there was an upsurge in new listings, which has slightly improved housing inventory,” he said.
Inventory in Ottawa has been lower than usual for many months. Dwight Delahunt said that although we are not yet in a balanced market, buyers should keep in mind that the limited supply has not created a run-up in prices, which can sometimes happen when demand is high.
“Residential house prices continue to increase. However, these are reasonable gains, and are not creating a bubble by any stretch,” Dwight Delahunt said.
“Condo prices have now recovered, and the oversupply in that sector no longer exists. Ottawa has a healthy condo market, and with major developments coming online in the future, we expect these too will be absorbed in due course,” he said.
If you’re considering entering the Ottawa market, it’s good to note that the most prevalent price point in July for condominium units was the $225,000 to $349,000 range, which accounted for 52 % of condo units sold in July.
The most active price range for residential-class properties in July was the $350,000 to $499,999 range, which made up 42 % of residential-class properties sold that month. Properties in the $500,000 to $749,999 range made up 28 % of residential sales.
Even with lower than usual inventory, these average sale prices are a reminder that Ottawa remains one of the most affordable big cities in Canada. Entering the Ottawa market remains much easier than it is in Toronto and Vancouver, for example, where average prices are often twice the Ottawa prices, for both condo units and residential properties.
Still, with inventory in Ottawa lower than it usually is, Dwight Delahunt says it’s important for sellers and buyers to work with an experienced Realtor who knows our market and has experience with current market conditions.
“It is vital that sellers utilize the experience and advice of a Realtor to maximize your property’s potential _ and if you are a buyer, to guide you through the complexities this intricate market presents.”
If you’re considering buying or selling property in the Ottawa area, I’d love to meet with you and tell you about the current market and conditions in your area. With more than 30 years of experience as a Realtor, I know the city and its many neighbourhoods well, and I have expertise in helping clients navigate all market conditions.
You can read about me and my team at www.nancybenson.com, where you can also view my current listings to get an idea of the presentation and marketing we offer. Feel free to give me a call, at 613-747-4747.