The steady rebound we’ve seen in Ottawa’s resale real estate market over the past few months continued with a spectacular July.
Average sale prices for residential properties were up 20 % over the same month last year, and the number of properties sold was up 19 % over July of 2019.
In other good news if you’re thinking of selling, multiple offers are common, with over 57 % of properties in July selling for above the list price. In July of last year, only 33 % of properties sold for above the listed price. That’s partly because inventory in Ottawa continues to be low, and new properties on the market receive a lot of attention from buyers and their agents.
The sales figures for July, just released by the Ottawa Real Estate Board, continued the steady improvements we’ve seen in our market since April, when concerns around Covid-19 impacted sales for the month. The number of properties sold that month was down more than 50 % from the previous April.
Since then, as Realtors follow new safety protocols for property showings, Ottawa’s market has steadily recovered, with transactions increasing each month and average sale prices increasing steadily for residential properties and condominium units.
Members of the Ottawa Real Estate Board sold 2,189 residential properties in July through the Multiple Listing Service (MLS) system, an increase of 19 % over the 1,838 properties sold in July of 2019. It’s also well above the five-year average for July, which is 1,729.
The average sale price for an Ottawa condominium unit in July was $357,764. That’s up 19 % from the average price in July of 2019. The average sale price for a residential unit was $585,084, an increase of 20 % over the same month last year.
Average sale prices year-to-date, which are more revealing than increases for a specific month, show residential property prices up 16 % and condo units up 18 % over the same period in 2019.
As Deborah Burgoyne, President of the Ottawa Real Estate Board said in a statement, “the resale market is not only holding its own but has surpassed 2019 figures by a significant margin. Summer usually slows down. However, after the pandemic curtailed the spring market this year, we have rebounded well beyond expectations. It is somewhat surprising, given continuing inventory shortages and the extra diligence and precautions being taken by our members and their clients to ensure everyone’s safety in the process.”
With the number of property listings in Ottawa lower than usual, as has been the case for many months, and multiple offers becoming more common, the market is currently favoring sellers.
If you’re a buyer, it will help to have a clear idea of what you want in a property and be prepared to act quickly on an offer when you see something you like, particularly in the city’s more in-demand neighbourhoods.
As Deborah Burgoyne says in her statement on the July sales, “Now that the market is on an upward trend, timing is critical. For those contemplating a move without the pressure of a purchase tied to it, it is an opportune time to realize a solid return on your investment. This market is challenging for all involved, and more balance would be a welcomed relief for everyone.”
The Ottawa Board cautions that while average sale prices in a given 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 vary from neighbourhood to neighbourhood.
If you’re interested in buying or selling, I’d be happy to chat with you about the current market and the safety protocols we have in place for showings. With more than 30 years of experience as a Realtor in Ottawa, I’ve helped clients navigate a wide range of market conditions. Feel free to give me a call, at 613-747-4747. You can read more about me and my team and see my current listings at www.nancybenson.com