The Ottawa housing market experienced another high performing month in August. The Ottawa Real Estate Board reported that 1,576 homes were sold +22% from August last year. Average prices continued to increase, with an average sale price of $592,548, up to + 22% over this time last year. The average number of days on the market is 18 days, which is down 38.6% than August 2019.
Condominium sales were also healthy in August, with 441 condos sold +2% from last year, resulting in an average sale price of $383,640 +24% over the year. Condos remain on the market an average of 16 days, which is 51% fewer days than last year.
New listings in July and August helped improve the Ottawa Real Estate Market Results
How are Ottawa Real Estate sales continuing to grow when we are in a seller’s market with limited supply? According to Deb Burgoyne, Ottawa Real Estate Board President, “There were at least 300 more residential and 175 more condos listed on this market versus August 2019.” We have not seen new listings quantities like this since August 2015.
Ottawa housing market prices continue to increase– Here’s Why
- Multiple offers – There are many active buyers on the market driving up prices; many have been looking for their next home for quite some time.
- Record low mortgage rates and the new decreased debt to equity thresholds make financing a home even more attractive.
- Consumers are arriving from other markets who have sold their previous homes and received a high return.
- A slow start to the year and now post quarantine, pent up demand from consumers who are anxious to buy and possibly find a home that better suits their needs.
- Ottawa has been relatively insulated when it comes to retail prices, as a capital city and now a growing market, unlike larger cities who have already experienced these price increases.
Deb Burgoyne also adds: “I suspect that prices are not going to come down, nor is activity going to slow down in the near future. Whether you are on the buying or selling side of a transaction, this is not the kind of market to navigate without guidance. An experienced REALTOR® will ensure that Buyers are making strategic offers, and Sellers are not leaving money on the table.”
Why are there so many new listings coming onto the market in August?
- Sellers are ready to capitalize on their investments, given the strong market results.
- Some residents are deciding to move farther out of the city due to their changing needs during the pandemic.
- Baby boomers continue to downsize and make different home choices such as seniors’ residences, rentals or moving out of the city entirely.
“If the rate of properties coming on the market can be sustained, it will be a much-needed balance to our limited supply in the Ottawa real estate market.” Says Ottawa Board President.
Note from the Ottawa Real Estate Board: * The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.
We look forward to hearing from you.