Ottawa’s resale real estate market rebounded impressively in June, with average sale prices up 15 % for residential properties and 17 % for condominium units over June of last year, the Ottawa Real Estate Board has reported.
With the number of properties for sale continuing to be lower than usual, we are still seeing a sellers’ market in our area, with properties selling quickly and more than half of the properties in June selling for above asking price.
Members of the Ottawa Board sold 2,052 properties in June through the Board’s Multiple Listing Service (MLS) System. That’s very close to the five-year average for the month, which is 2,072, and it’s only 2% below the number of properties sold in June of 2019.
The number of properties for sale continued to be lower than usual for this time of year, and multiple offers were common in the city’s most popular neighbourhoods.
This good news reflects what I’ve been seeing and hearing from clients, with many buyers and sellers deciding to move forward following initial hesitation over the COVID-19 virus earlier this year. The effect was most noticeable in April, with far fewer transactions that month than was usual.
Since then, things have picked up steadily. The number of properties sold in May was up 50% over April. The transactions in June were up again, more than 50%from May’s numbers.
“With safety protocols firmly in place, and buyers and sellers more accustomed to our new normal, the resale market has rebounded to meet pent-up demand,” Ottawa Real Estate Board President Deborah Burgoyne said in a statement.
“June’s new listings doubled compared to April and increased 45% from the number of listings that came onto the market in May. A consequence of these rapid sale turnarounds is that housing inventory does not have a chance to build,” she added.
“Residential inventory is now 52% lower than last year at this time, and condominium supply is down 42%. We continue to be in a strong seller’s market, with less than one month’s supply currently available.”
The average sale price in June 2020 for a condominium-class property was $360,922. That’s an increase of 17 %over the average price in June of last year. The average sale price for a residential-class property was $575,623. That’s up 15%over June of 2019.
Average sale prices year-to-date, at $554,256 for residential and $351,353 for condo units, represent a 14 %and 18% increase over the same period in 2019, respectively.
“The manifestation of the seller’s market is certainly evident when you look at average property prices, which continued to increase, albeit less significantly, in the past couple of months,” Deborah Burgoyne said.
“We are once again witnessing double-digit percentage growth over last year, and the average residential price is now in the high five hundreds. Additionally, multiple-offer situations are influencing market values, as statistics show approximately 56% of properties sold over asking in June.”
The Ottawa Board cautions, as it always does, that average sale prices for a specific month can be useful in establishing trends over time, but should not be taken as an indicator that specific properties have increased or decreased in value. As with any city, prices and increases in Ottawa will vary from neighbourhood to neighbourhood.
If you’re considering selling or buying in the Ottawa area, I’d be happy to give you more information on the current market, conditions in your neighbourhood, and the safety protocols we have put in place around property showings. With more than 30 years of experience helping clients in this area, I know Ottawa’s neighbourhoods well, and have worked in a wide range of market conditions.