Ottawa Market Update, April 2019
Members of the Ottawa Real Estate Board sold 2,032 residential properties in April through the Board’s Multiple Listing Service® System, compared with 2,024 in April 2018, an increase of 0.4%. April’s sales included 1,594 in the residential property class, on par from a year ago, and 438 in the condominium property class, an increase of 5.3% from April 2018. The five-year average for April unit sales is 1,825.
Residential supply is down 18%, and condo inventory is down almost 40% from last April. Despite this tight supply, the residential market is holding its own and the increase in unit sales is effectively coming from the condo market which until recently, was in a surplus.
The average sale price of a residential-class property sold in April in the Ottawa area was $488,729, a rise of 7.4% over April 2018. The average sale price for a condominium-class property was $307,659, an increase of 14.3% from this month last year. Year to date numbers show a 6.6% and 8.7% increase in average prices for residential and condominiums respectively.
The stunted supply is likely responsible for the multiple offer situations we are experiencing, but the reality is that while approximately one-third of properties are selling above asking, more than 50% are still selling below the listed price. Ottawa is a stable and affordable market and has been since the 1940’s.
In this challenging market, it is best if you seek the advice of an experienced Realtor® if you are thinking of buying or selling. Every area is slightly different so you need to be well prepared when you dip your feet into the real estate market today.