This August, the Ottawa real estate housing market experienced a more typical end of summer trend compared to last year. The number of homes sold in the condominium and residential property class were lower than in August 2020.
“August’s unit sales followed a trajectory typical of the resale market’s summer months with a considerable decline in transactions compared to the spring and 9% fewer sales than in July (1,724). The number of properties changing hands was on par with August 2017 and 2018 figures. The reason we see a sharp decrease compared to last year’s numbers is due to the first wave lockdown in spring 2020, which shifted that market’s peak to the summer and fall months,” states Ottawa Real Estate Board President Debra Wright.
The residential average sale prices were $674,449, an increase of 14% compared to last year. Condominium prices rose by 6% to $407,148. The average days on market for residential homes was 18 days, which was on par with last year. Condominiums increased by 37.5% to 22 days. The number of properties sold in both classes decreased; by 25% to 1,175 for residential and 9% to 397 for condominiums.
Supply Remains Scarce
“Supply continues to remain scarce, and that is the driving factor behind these price increases. New listings were down 400 units from July and 500 units from last August and below the 5-year average for the first time this year since February. Although inventory is approximately 5-6% higher than last year for both residential and condominium property classes, we are only at about 1.5 months’ worth of housing stock. To achieve a balanced market, we need 4-6.5 months’ supply of inventory,” Wright points out.
Rent or Own?
Properties rented have increased since last year which shows most people are currently opting to rent instead of buying. Government officials are discussing the housing affordability and shortage of supply. This is one of the main topics in the upcoming election, which is a step in the right direction to finding solutions for Canadians who want to enter the housing market.
Note: * The Ottawa Real Estate Board cautions that the average sale price can help establish trends over time but should not be used to indicate the value of homes and condominiums. Average sales prices are calculated on the total dollar volume of all properties sold. Of course, pricing and conditions will vary from neighbourhood to neighbourhood.