The first month of 2022 in Ottawa was often frigidly cold, and we faced a return of some government-imposed COVID-19 restrictions, but Ottawa’s resale residential real estate market remained hot, with average sale prices up by double digits for houses and condo units.
The average sale price for a residential-class property in January in Ottawa was $771,739, the Ottawa Real Estate Board reports. That’s up 14% from the average price in January of 2021.
The average sale price for a condominium unit in January, meanwhile, was $447,943 _ up 18% from the average sale price in January of last year.
As well, the total number of transactions for the month was above average for January, typically one of the slower months of the year. Members of the Ottawa Real Estate Board sold 936 residential properties in January. The five-year average for January sales in Ottawa is 840.
In an interesting trend, the number of properties in our region selling for more than $1 million continues to rise. In 2020, properties in that range represented just 3% of residential sales, the Board says. In 2021, that jumped to 9%. In January, close to 14% of detached home sales were in that range.
The low inventory that we’ve experienced in Ottawa for several years is continuing to affect prices.
“Average prices continue to rise steadily with the lack of inventory pushing prices to levels previously unseen,” says Penny Torontow, President of the Real Estate Board.
January’s sales, which were nearly identical to the number in January of last year, “were very strong for a traditionally slower month,” she says.
This increased activity, she noted, “ is not solely a pandemic phenomenon. Yes, the pandemic has accelerated market activity in some ways, but pent-up buyer demand due to the housing supply shortage has been an ongoing fundamental issue for the Ottawa resale market for well over five years now, and the price increases will continue to reflect that until the housing stock grows.”
The Board says the percentage of properties in January that sold in the $650,000 to $900,000 range has also grown. In January of 2022, that price range represented 47% of all of the month’s residential unit sales. That’s up from 33% in in January of 2021.
Penny Torontow cautions that “we must keep in mind, average prices statistics amalgamate data from the entire city, so while in some areas the increases would be less, other pockets of Ottawa may see more.”
Ottawa’s condo market is also doing well “both in number of sales and prices,” she notes.
“Possibly due to the fact that residential units may be out of reach for some buyers, they are finding themselves more open to this option and are actually able to find a condominium-class property within their budget.”
“Bad weather, pandemic lockdowns, it doesn’t matter _ Ottawa remains a fast-moving, active and robust market,” she says.
“If you are thinking of selling your property, there has never been a better time. Contact a Realtor who can explain the various factors that will help you get the best price for your home today.”
The Ottawa Board cautions that while average sale prices in 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 price increases in Ottawa vary from neighbourhood to neighbourhood.
If you’re considering selling or buying property in Ottawa, I’d love to chat with you and tell you more about conditions in your area of the city. With more than 30 years of experience assisting buyers and sellers in our region, I have the expertise and negotiating skills to help you navigate our current hot market.
You can read about me on my site, www.nancybenson.com, where you can view current listings and testimonials from clients. Feel free to give me a call, at 613-747-4747.