The average sale price for a resale home in Ottawa in October of 2021 was up 19% from October of 2020, the Ottawa Real Estate Board has reported.
In October, a month marked by continued lower-than-usual inventory, the average sale price for a residential-class property in Ottawa was $716,378, the Board reported in its release of the monthly sales numbers.
The average sale price for a condominium-class property in October, meanwhile, was $404,760 _ an increase of 10% over the average sale price in October of 2020.
Looking at average sale prices from January to October of 2021, which can be more revealing than the numbers for a specific month, the average sale price for a residential-class property was $720,150 _ up 24% over the same period last year.
The average sale price in that period for a condo-class property was $419,515 _ up 16% over the same period in 2020.
The number of properties sold in October was slightly above average.
Members of the Ottawa Board sold 1,677 properties through the Multiple Listing Service (MLS) system, while the five-year average for October is 1,605. The total for October included 1,263 in the residential-property (non-condo) class, and 414 in the condominium property class.
Debra Wright, President of the Ottawa Board, says the low inventory we’ve seen in the Ottawa market for the past year has contributed to the price increases.
“While the number of units sold followed the traditional trajectory, the lack of supply continues to put upward pressure on prices, which are holding strong and steadily increasing,” she said.
“Although there were 1,960 new listings in October, falling just under the five-year average (1,974), it’s simply not enough. Inventory remains at a one-month supply for residential properties and 1.2 months for condominiums. The only way we will find balance in Ottawa’s market is to increase the housing stock exponentially.”
She said some property owners are holding on to properties rather than downsizing or moving up, as they might have done in a more balanced market.
“Low inventory and a lack of suitable housing options restrict movement along the housing spectrum,” she said, adding “we need that exchange of properties in the marketplace to free up supply for entry-level homebuyers.”.
She says the Board has also noticed “a substantial increase in the number of rental transactions through the MLS system, which could suggest that some of the properties have been purchased or held on to for investment purposes. This active rental market may be another contributing factor as to why there aren’t more properties coming onto the market for sale.”
The Board says its member have assisted clients with renting 4,012 properties since the beginning of the year, compared with 2,829 at the same time last year.
In short, if you’re considering selling, the Ottawa market remains in your favor, as it has been for many months. New listings attract a lot of notice from Realtors and buyers, and properties in the hottest neighbourhoods are often attracting multiple offers.
The Ottawa Board cautions that while the average sale price for a specific month can be useful in establishing trends over time, it 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’re considering selling, I’d be happy to meet and chat with you about the current market and conditions in your area of the city.
If you’re looking to buy, the Ottawa market is challenging, and the search might take a little longer than usual. But with more than 30 years of experience as a Realtor in this area, I’ve developed successful strategies for finding ideal properties, even when inventory is low. I can share that background with you, and help you to be ready to act quickly when you see something you like.
For buyers, having a Realtor working for you and representing your interests is definitely a must in the current Ottawa market. Keep in mind that a Realtor’s services are offered at no cost to you, the buyer. Fees for the buyer’s agent are covered by the selling agent.
You can read more about me and my team, at www.nancybenson.com. Feel free to give me a call, at 613-747-4747.