Joanne Clemens | Hot Market in a Scorching July
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Hot Market in a Scorching July

Hot Market in a Scorching July

OTTAWA, August 6, 2019 – 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 per

cent. July’s sales included 1,382 in the

residential-property class, up 12.3 per

cent from a year ago, and 460 in the

condominium-property category, a rise

of 23 per cent from July 2018. The

five-year average for July unit sales

is 1,579.

“Typically, after the busy spring, July

tends to be a slower month as people

take vacations and spend more time

with their families, but there was no

slow down this past month,” observes

Dwight Delahunt, President of the

Ottawa Real Estate Board. “In fact,

we recorded the highest number of

July sales in 15 years.”

“Also, for the first time in 2019, there

was an upsurge in new listings which

has slightly improved housing inventory.

Although this is encouraging news, it is

not enough to keep up with demand. In

order to bring about a more balanced

market, there needs to be at least a

three-month supply of listings. Currently,

Ottawa is closer to a one-month supply,”

he adds.

“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,” Delahunt recommends.

July’s average sale price for a

condominium-class property was

$299,665, an increase of 6.8 per cent

from last year while the average sale

price of a residential-class property was

$487,308, an increase of 10.4 per cent

from a year ago.*

“Residential house prices continue

to increase; however, these are

reasonable gains and are not creating

a bubble by any stretch,” Delahunt

maintains. “Condo prices have now

recovered, and the oversupply in that

sector no longer exists. Ottawa has a

healthy condo market and with major

developments coming online in the

future, we expect these too will be

absorbed in due course.”

The $350,000 to $499,999 price range

was the most prevalent price point in

the residential market, accounting for 42

per cent of July’s transactions while 28

per cent of residential sales were in the

$500,000 to $749,999 range. The most

active price point in the condominium

market, $225,000-$349,999, accounts

for 52 per cent of the units sold.

When asked about how the upcoming

federal election might affect the real

estate market, Delahunt emphasizes,

“We continue to believe the stress test

is negatively impacting our housing

market and look forward to hearing

about how the various parties intend

on addressing this contentious issue

as the election approaches.”

In addition to residential sales,

OREB Members assisted clients with

renting 1,619 properties since the

beginning of the year.

* The Board cautions that the average

sale price 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