There is a lot of good news to share about the Ottawa resale real estate market in August of 2018, thanks to figures from the Ottawa Real Estate Board.
Average house sale prices for the month were up 3.1 per cent over the average in August of 2017. Average condominium sale prices were up 2.2 per cent. The number of properties sold in August was also above average for the month.
And while overall inventory in the Ottawa market continues to be low (18 per cent lower than last year’s inventory level), prices have not yet been significantly affected, says Ralph Shaw, President of the Ottawa Real Estate Board.
In a news release, the Ottawa Real Estate Board says members of the board sold 1,586 residential properties in August through the Multiple Listing Service (MLS) system. That’s up 3.3 per cent from the number that sold in August of 2017. It’s also well above the five-year average for August sales, which is 1,417.
Of the properties that sold in August in our area, 1,188 were in the residential property class. That’s relatively unchanged from the numbers of August, 2017. However, the 398 condominium units sold in August represents a 10.9 per cent increase over the numbers from 2017, continuing the resurgence in condominium unit sales we have seen in Ottawa for several months.
The average sale price of a residential-class (non-condo) property sold in August in the Ottawa area was $433,684. That’s a 3.1 per cent increase over August of 2017. The average sale price for a condominium unit was $276,720. That’s an increase of 2.2 per cent over the average price a year ago.
The 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 and conditions will vary from neighbourhood to neighbourhood.
“Our real estate market has had a busier than usual summer season, and we are shaping up for a busy fall period as well,” Ralph Shaw says a statement.
“An active market is likely to be the new normal for the foreseeable future,” he says.
The latest numbers are another reminder of how affordable the Ottawa market remains. By comparison, the Toronto Real Estate Board has just reported the average sale price of a residential property in the Greater Toronto Area in August was $765,270. The average sale price of a condominium apartment there was $541,106.
By contrast, the most active price point in Ottawa’s residential (non-condo) market in August was the $300,000 to $449,999 range. That range accounted for 45 per cent of home sales. Properties in the $500,000 to $750,000 range represented 22 per cent of August sales.
In the condominium market, the most active price range in Ottawa was the $175,000 to $274,999 range, accounting for almost 56 per cent of the units sold, the Real Estate Board reports.
As Ralph Shaw notes, “Ottawa continues to be an affordable place to buy property and is experiencing price growth more in line with inflation.” And while inventory is low, he says, “other than some pockets of the city, prices have not yet been significantly affected.”
He adds that “the demand for condos continues to be a driving factor in the Ottawa real estate market, likely due to the lack of rental availability. This is helping ease the oversupply of condos we have experienced in the past,” he says.
“Hopefully this will encourage developers to move forward with their stalled condominium projects, especially if the light rail is a go in November.”
If you’re interested in buying or selling property in the Ottawa area, I’d love to meet with you. I’d be happy to chat about our market and the expertise I offer, with more than 30 years as a Realtor in this region. You can see my current listings and read about my services at nancybenson.com. Feel free to give me a call, at 613-747-4747.