The average sale price for a residential property in Ottawa in February was $837,517. up 17% over the same month in 2021, the Ottawa Real Estate Board has announced.
The average sale price for a condominium-class property, meanwhile, was $466,682. That’s a 15% increase over the average in February of 2021.
In an unusually busy month for transactions, members of the Ottawa Real Estate Board sold 1,421 residential properties in February, up 3% from the number sold in February of last year. It’s also above the five-year average for February sales in Ottawa, which is 1,184.
A large increase in transactions between January and February has some predicting we will see an earlier arrival of the busy spring market, particularly with the recent increase in interest rates and indications of more increases in coming months.
“Although February’s resales were only 3% higher than last year at this time, we saw a 52% increase in the number of transactions compared to January’s figures (936). While a month-to-month increase is typical for this time of year, the gradation of this increase is higher than previous years, which could be an indication that our spring market may ramp up earlier this year,” Ottawa Real Estate Board President Penny Toronto said in a statement.
Ottawa’s resale market continues to favour sellers because of low inventory and high demand.
But there was a glimmer of hope in February, with 1,762 new listings. That’s 4% higher than the five-year average and 12% higher than the number of new listings in February of last year.
“We certainly hope this trend of increased new listings will continue to supplement the housing market going forward,” Penny Torontow said.
Still, she said, Ottawa remains “deeply entrenched in a sellers’ market. Overall we are now at a 0.7 month’s supply of inventory, which means that most listings that enter the market are going to be snapped up very quickly, as evidenced by the continuous decline in Days on Market,” she said, referring to the average number of days a property is on the market before selling.
On March 2, the Bank of Canada announced it was increasing its key lending rate by 0.25%. The Bank is expected to announce other hikes over the coming year.
The increase, which had been widely expected, could have been a reason for the increase in February transactions.
“Whether this has to do with the easing of government pandemic restrictions and the opening up of the economy or perhaps due the apprehension of the (then) upcoming interest rate increase, which is now in effect, we can’t entirely be sure,” Penny Torontow said.
“We are watching intently to see how the 2022 spring market will play out, considering not only the higher interest rates and inflation but also other macro factors in our global environment that could affect our local economy.”
With Ottawa continuing to be a seller’s market, Penny Torontow said homebuyers “need to have all their ducks in a row and are prepared to move expeditiously. A Realtor will have the knowledge to ensure you are making your best offer at the optimal time. Sellers also need the experience and resources a Realtor brings, to ensure they are strategically positioning their homes, given the conditions of their neighbourhood and property type.”
When it releases its monthly sales numbers, the Ottawa Real Estate Board cautions that while 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 in Ottawa will vary from neighbourhood to neighbourhood.
If you are considering buying or selling property in Ottawa, I’d be happy to chat with you about the current market and conditions in your part of town. With more than 30 years of experience assisting clients in a wide range of market conditions, I know the city well and have many years of experience negotiating on behalf of clients.
If you are considering selling in the busy spring season, now is a good time to get started, so we can start preparing your property to look its best and have it ready to list. Touch-ups and decluttering can take time. Even in a market favouring sellers, it’s important to have a property look its best and to price it strategically.
You can read more about me and view my listings at www.nancybenson.com Feel free to give me a call, at 613-747-4747.
