In July 2021, the Ottawa housing market saw a decrease in overall activity compared to last July, possibly due to a combination of Buyers taking vacations and the reopening of the economy last month. The inventory of resale homes is increasing, which should help to stabilize the market.
“July’s unit sales followed the traditional cycle of the spring and summer markets, which tend to peak around April or May and then slow down as Buyers and Sellers turn their attention to their vacations and other outdoor recreational activities,” states Ottawa Real Estate Board President Debra Wright. “This year’s figure is closer to 2019’s (1,838 sales) and just shy of the 5-year average, with the slight decline in transactions perhaps due to the combination of summer and the reopening of the economy last month. Certainly, the marked decrease from last year’s July sales is due to the spring 2020 lockdown, which had shifted the 2020 resale market’s peak to the summer and fall months.”
Ottawa Real Estate Update
The residential and condominium average house prices both rose by 17% to $685,426 and $419,545 respectively. The average days on market for residential homes was 16 days, which decreased by 27.9% compared to July 2020. For condominiums, properties were on the market for an average of 18 days, which was an increase of 16.4%. The number of properties sold in the residential class decreased by 20% to 1,312 homes. Condominiums decreased by 24% to 412 properties.
“Following the same trend as sales, the month-to-month average prices decreased marginally by 4-6% compared to June; however, this minor dip is consistent to what typically happens during the summer months. Overall, average prices have increased considerably from 2020, and year-to-date values are holding steady. Still, Sellers will need to keep in mind that the multiple offer frenzy experienced previously is no longer the norm, and they may need to have more realistic expectations when positioning their homes and settling on a listing price with their REALTORS®,” Debra Wright.
Buyers have an opportunity to enter the market
The Ottawa real estate market is still seeing house prices steadily increasing; however it has really started to stabilize with more properties on the market, making it possible for buyers 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.