Joanne Clemens | February Resales Snapped up Quickly
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February Resales Snapped up Quickly

February Resales Snapped up Quickly

OTTAWA, March 3, 2021 –

Members of the Ottawa Real Estate Board sold 1,390 residential properties in February
through the Board’s Multiple Listing Service® System, compared with 1,134
in February 2020, an increase of 23 percent. February’s sales included 1,028
in the residential-property class, up 24per cent from a year ago, and 362 in
the condominium-property category, an increase of 19 per cent from February
2020. The five-year average for total unit sales in February is 1,101.

“Resale properties are virtually flying off the shelves,” states Ottawa Real Estate
Board President Debra Wright. “Even though our inventory is significantly
lower than 2020 – a combined 46% decrease in housing stock for residential
and condos – we witnessed a record number of sales in February 2021. How
is that possible? Simply put, properties that come onto the market are selling
very quickly.”

“With less than a month’s supply in both categories, residential homes, in
particular, are experiencing the quickest turnarounds. This is evidenced in the
sharp decline of Days on Market (DOM) from 30 days in February 2020 to 14
days last month. Interestingly, DOM for the condo market has gone up slightly
from 19 to 22 days, likely due to the fact that the condo market was thriving
and moving very quickly prior to the pandemic spread in Canada. We saw
Buyer desire for more house space dampen that market temporarily;
however, it is clear the condo market has stabilized and is starting to rebound
with a 19% increase in transactions compared to last year at this time.”

February’s average sale price for a condominium-class property was
$407,671, an increase of 17 per cent from last year, while the average sale
price of a residential-class property was $717,914, an increase of 27 per
cent from a year ago. With year-todate average sale prices at $701,778
for residential and $395,496 for condominiums, these values represent
a 29 per cent and 15 percent increase over 2020, respectively.*
“With supply constraints continuing to place upward pressure on pricing,
there is no doubt that this economic fundamental is driving the price
increases. This is also reflected in February’s total sales volume for
residential and condos, which combined was at $885,592,105, 54% higher than
the same month in 2020. There is no denying that scarcity is leading to a more
rapid price acceleration. This scarcity combined with Buyers’ willingness to
pay and compete in this market will continue to drive up the sales prices,” Wright asserts.

“The upcoming spring market will bring more listings and increased inventory;
however, the question is whether it will be enough to meet demand.
Having a sound strategy, whether you are buying or selling, is the key
to success. In this complex and fastpaced market, it is essential to utilize the
skills and experience of a REALTOR® with negotiation skills and the market
knowledge to act quickly on your behalf.”

“Did you know they also help tenants
locate rental accommodations in addition to assisting landlords in finding tenants?
Ottawa’s vacancy rates have soared due to the lack of immigration, visiting
student populations, decline in Airbnb, etc. There are many good quality rentals
out there, and a REALTOR® can help you find one whether you are selling and
prefer to rent or searching for a different location,” Wright concludes.

OREB Members assisted clients with renting 674 properties since the
beginning of the year compared to 498 at this time last year.

* The Board cautions that the average saleprice 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.