Market Updates
Posted on: January 24th, 2020 by Chantel Brownlee
Members of the Ottawa Real Estate Board (OREB) sold 761 residential properties in December through the Board’s Multiple Listing Service® System, an increase of 15.3% over December 2018. December’s statistics reflect the same story we’ve seen all year – historically low supply yet higher unit sales than in previous years. Days on market continued to decline, especially in certain pockets of the city, as properties that came on the market were snapped up by prepared buyers. Condo sales led the way, offering lower price point options for homebuyers that simply weren’t available in the residential category. The total number of residential and condo units sold throughout 2019 was 18,622, compared with 17,467 in 2018, an increase of 6.6%. Residential property class sales went up by 4.7% and condominium property class sales increased 13% over 2018. 2019 was a record-breaker in both the number of sales as well as average prices.
December’s average sale price for a condominium-class property was $310,675, an increase of 11.5% from a year ago while the average sale price of a residential-class property was $500,306, an increase of 10.3% from December 2018. Year-end figures show an average sale price of $486,590 for residential class properties in 2019, an 8.9% increase from 2018 and $304,203 for condominium properties, up 9.3% from last year. OREB’s 2020 President, Deborah Burgoyne, forecasts Ottawa will continue to experience limited supply and reasonably increasing average prices in 2020.
Builders are constructing luxury rental units, which is something we haven’t seen much of before. These could potentially add inventory to the residential class, as boomers will have decent options if they are considering entering a different lifestyle than homeownership.
Don’t forget that every areas different and in a challenging market it is best to use an experienced real estate agent if you are thinking of buying or selling.
I would love to hear from you!
Chantel
Posted on: December 4th, 2019 by Chantel Brownlee
Members of the Ottawa Real Estate Board sold 1,288 residential properties in November through the Board’s Multiple Listing Service® System, compared with 1,161 in November 2018, an increase of 10.9%. November’s sales included 958 in the residential-property class, up 10.5% from a year ago, and 330 in the condominium-property category, an increase of 12.2% from November 2018. The five-year average for November unit sales is 1,133.
Even with the typical winter slowdown, Ottawa’s home resale market still experienced a relatively brisk pace in November. Our inventory is not having a chance to build as it is being absorbed as quickly as it comes on the market. That’s why there are so many sales every month even though the supply stock is low.
November’s average sale price for a condominium-class property was $313,734, an increase of 9.8% from last year while the average sale price of a residential-class property was $501,201, an increase of 16.9% from a year ago. Year to date figures show an 8.9% and 9.1% increase in average sale prices for residential and condominiums, respectively. Prices have increased, and therefore there is shortage of units available in the lower end price range of both condos and residential properties. The Ottawa market still remains strong and sustainable with reasonable increases in year to date average prices of 9% in both the residential and condominium property classes.
Our market can be fairly complex at the moment so the guidance of an experienced real estate agent is a must. Please do call me if you are thinking of buying or selling – and keep those referrals coming!
Chantel
Posted on: November 6th, 2019 by Chantel Brownlee
Members of the Ottawa Real Estate Board sold 1,607 residential properties in October through the Board’s Multiple Listing Service® System, compared with 1,375 in October 2018, an increase of 16.9%. October’s 1,211 residential sales were up 15% from a year ago, and 396 condo sales represented an increase of 23% from October 2018. The five-year average for October unit sales is 1,319. New listings are down, inventory remains scarce, and transactions are taking place at a breakneck pace. Home buyers and sellers are often required to make swift, on-the-spot decisions.
October’s average Days on Market (DOM) for residential properties decreased by 10 days to 33 days, and for condominiums, DOM decreased to 28 days from the average 47 days experienced this time last year. Year to date figures show 31 DOM (down 8 days) for residential properties and 35 DOM (16 fewer days) for condominiums. Products are flying off the shelves, so to speak.
October’s average sale price for a condominium-class property was $319,208, an increase of 18.3% from last year while the average sale price of a residential class property was $483,405, an increase of 7.6% from a year ago. Year to date figures show an 8.3% and 9.1% increase in average sale prices for residential and condominiums, respectively. We are seeing slightly above-average climbs in home prices this year. Still, the growths are reasonable considering the state of the market and Ottawa retains its reputation of being one of the country’s most affordable cities where residents can enjoy a high quality of life. There has been a significant increase in residential properties sold in the $500-750K price range. This price point now represents almost 1 in every 3 home sales.
Sellers should use the knowledge of a REALTOR® to understand the complexities of their home’s positioning. Buyers require timely guidance on how to put in an attractive offer in this fast-paced market, and both parties must understand the intricacies of the contracts they are signing. Please do give me a call if you are buying or selling a home. Local advice and guidance is the best.
Chantel
Posted on: September 10th, 2019 by Chantel Brownlee
Members of the Ottawa Real Estate Board sold 1,731 residential properties in August through the Board’s Multiple Listing Service® System, compared with 1,581 in August 2018, an increase of 9.5%. The five-year average for August unit sales is 1,522. Although the numbers are up, Ottawa continues to undergo issues with inventory as the limited supply persists.
August’s average sale price for a condominium-class property was $308,781, an increase of 11.5% from last year while the average sale price of a residential-class property was $484,921, an increase of 11.8% from a year ago. Year to date figures show an 8.4% and 7.9% increase in average sale prices for residential and condominiums respectively. Year to date average prices are more reliable indicators than monthly average prices and they show steady, reasonable, and sustainable increases.
Coming into the fall months, which are typically busy, we expect the market will continue to pick up steam. Your home purchase or sale is not a DIY project; there’s too much at stake. Be sure to find a local REALTOR® with the depth of knowledge and experience that is warranted in one of the biggest investments you will make in your life. Every area is different, so please give me a call if you are thinking of buying or selling – and keep those referrals coming!
Chantel
Posted on: August 8th, 2019 by Chantel Brownlee
July is often a slow month in real estate – but not this year! We recorded the highest number of July sales in 15 years. We saw an upsurge in new listings in July which has slightly improved housing inventory – though not enough to meet demand.
Members of the Ottawa Real Estate Board sold 1,842 residential properties in July through the Board’s Multiple Listing Service® System, compared with 1,605 in July 2018, an increase of 14.8%. July’s sales included 1,382 in the residential-property class, up 12.3% from a year ago, and 460 in the condominium-property category, a rise of 23% from July 2018. The five-year average for July unit sales is 1,579.
July’s average sale price for a condominium-class property was $299,665, an increase of 6.8% from last year while the average sale price of a residential-class property was $487,308, an increase of 10.4% from a year ago. Residential house prices continue to increase at a reasonable rate and condo prices have now recovered – the oversupply in that sector no longer exists.
In this type of market, it is vital that Sellers utilize the experience and advice of a REALTOR® to maximize your property’s potential — and if you are a Buyer, to guide you through the complexities this intricate market presents. Since each area is slightly different, please give me a call if you are thinking of buying or selling. And keep those referrals coming – they are greatly appreciated.
Chantel
Posted on: July 8th, 2019 by Chantel Brownlee
Members of the Ottawa Real Estate Board sold 2,105 residential properties in June through the Board’s Multiple Listing Service® System, compared with 2,064 in June 2018, an increase of 2%. June’s sales included 1,612 in the residential-property class, on par with a year ago, and 493 in the condominium property class, a rise of 8.8% from June 2018. The five-year average for June unit sales is 2,002. Condo resales, up 8.3% from last year, are the driving force for the upturn in units sold in the first half of 2019.
June’s average sale price for a condominium class property was $308,482, an increase of 6.2% from last year while the average sale price of a residential-class property was $500,716, a rise of 11.4% from a year ago. YTD figures show a steady growth of 7.6% and 7.5% for residential and condominiums respectively.
In the past decade we have seen an approximate 52% increase in residential average prices and 34% for condominiums – a great return on investment for homeowners. Ottawa remains one of Canada’s most affordable major cities. Some areas of the city are experiencing multiple offers, and the competition for well-priced and positioned properties is brisk – 39% of properties sold in June went for more than the asking price.
This is not a speculation market. We anticipate there will be a high demand in the foreseeable future due to increasing population and strong employment in the area. Having an experienced Realtor® becomes extremely important in a challenging market. Every area is slightly different so please give me a call if you are thinking of buying or selling.
Chantel
Posted on: June 6th, 2019 by Chantel Brownlee
Despite the continuing low inventory, we have higher sales volume than this time last year. Members of the Ottawa Real Estate Board sold 2,423 residential properties in May through the Board’s Multiple Listing Service® System, compared with 2,271 in May 2018, an increase of 6.7%. Residential sales (1,869) increased 4.6% from this time last year while condo sales (554) increased 14.2% from May 2018. The five-year average for May unit sales is 2,167. Well priced and positioned properties are turning over quickly. Condo sales are bolstering the resale market, up 14% from a year ago, and provide an excellent opportunity for those wishing to enter the market or are ready to downsize.
May’s figures show the average sale price for a condominium-class property was $297,731, an increase of 5.8% from last year (7.9% YTD) while the average sale price of a residential-class property was $493,691, a rise of 6.4% from a year ago (6.6% YTD). Home prices are steadily increasing at a reasonable rate, and the fact that they are not spiking confirms that our market is healthy and sustainable.
Some pockets of the city are experiencing multiple offer situations but there are still many opportunities for those who want to find an affordable property. This is where the assistance of an experienced REALTOR® will serve you well. They understand Ottawa’s neighbourhoods, market trends, and property values and can guide you in your home sale or search.
If you are thinking of buying or selling, or you know someone who is – I’ll be waiting for your call. I can help!
Chantel
Posted on: May 4th, 2019 by Chantel Brownlee
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.
Chantel
Posted on: April 6th, 2019 by Chantel Brownlee
Spring is coming, but where are all the houses for sale? Members of the Ottawa Real Estate Board sold 1,511 residential properties in March through the Board’s Multiple Listing Service® System, compared with 1,654 in March 2018, a decrease of 8.6 per cent. March’s sales included 1,136 in the residential property class, a drop of 12.4 per cent from a year ago, and 375 in the condominium property class, an increase of 5 per cent from March 2018. The five-year average for March unit sales is 1,402.
A lack of inventory is resulting in reductions in days on market – properties are selling quickly and buyers are often facing multiple offers. These are signs of a “sellers’ market” but it is a very stressful time for buyers. Sellers, too, are facing problems finding a home to buy which is why they aren’t listing! Condo units in the entry-level range are becoming hard to find as first-time home buyers are fighting to get into the housing market.
Ottawa’s population base is increasing approx. 8.8% per year. With high demand and low supply, prices will continue to push upwards. The average sale price of a residential class property sold in March in the Ottawa area was $480,143, a rise of 7.2 per cent over March 2018. The average sale price for a condominium-class property was $290,181, an increase of 5.2 per cent from this month last year.
With this kind of complex market, it is essential that both buyers and sellers enlist the experience and guidance of a REALTOR® to help them wind their way through these difficult times. If you are thinking of buying or selling – or you know somebody who is, please give me a shout. I’m always happy to help. And – don’t forget those referrals. They mean a lot to the success of my business.
Chantel
Posted on: March 7th, 2019 by Chantel Brownlee
Members of the Ottawa Real Estate Board sold 1,005 residential properties in February through the Board’s Multiple Listing Service® System, compared with 978 in February 2018, an increase of 2.8 per cent. The five-year average for February sales is 949.
February has been a strong month in spite of inventory challenges, and with year-to-date unit sales 8% higher in both the condo and residential categories, it is looking very favourable for the spring market. Days on market continue to decline and inventory has fallen to its lowest level in many years. If we had more supply, our unit sales would be even greater.
The average sale price of a residential-class property sold in February in the Ottawa area was $466,540, an increase of 8.6 per cent over February 2018. The average sale price for a condominium-class property was $288,354, an increase of 5.6 per cent from this month last year. The Ottawa market is well ahead of inflation regarding average prices for both condo and residential properties. We are in a comfortable position and remain one of the most affordable markets in the country.
If you are thinking of buying or selling, you will need the expertise of an experienced Realtor® to help you navigate through this complex market. Don’t wait too long if you hope to get a jump on the Spring Market! Give me a call – I’m happy to help.
Chantel
