The real estate in Ottawa spring market continued to be a strong seller’s market in April. However, we did notice the market beginning to settle in some neighbourhoods in recent weeks due to the stay-at-home order which went into effect in early April.
“As the typical spring market ramped up, April was poised to be the strongest on record with over 3,200 new listings of properties for sale. Most of these properties entered the market before the province’s stricter lockdown order was announced midway through the month. At that point, the trajectory sputtered, and while it continued to be active, it followed a noticeable decline as Sellers responded to the government’s resolution to reduce the spread of Covid-19,” states Ottawa Real Estate Board President Debra Wright.
Real Estate in Ottawa Market Results
Residential average prices for April were $743,204 which is an increase of 42% from last year, spending an average of 9 days on market, 58% less than the year before.
Condominium average sale prices rose by 30% from April 2020 to $427,145. They averaged 12 days on market, a decrease of 38.1% from last year.
The number of properties sold in April of this year compared to last reached new heights. The number of residential sold was 1,859 which is an increase of 166%! Condominiums were not far behind with 543 properties being sold, 155% higher than last year!
“These accelerated price increases boil down to a lack of supply and will continue to be a challenge for Buyers until more inventory becomes available – it’s fundamental supply and demand economics. Certainly, April’s substantial increase in new listings, 19% higher than the five-year listing average and over 400 units more than the previous month, gives us cautious optimism. When the Stay-at-Home order concludes, we hope that pent-up supply will bring some much-needed housing stock to the resale market,” suggests Wright.
The lockdown order is set to be lifted on May 20th, so we may have a late spring market into the summer like last year. If many more homes come on the market, it should help to stabilize prices and give buyers a chance to purchase.
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.