OTTAWA, September 5, 2019
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 per cent. August’s sales included 1,300 in the residential-property class, up 9.7 per cent from a year ago, and 431 in the condominium-property category, an increase of 8.8 per cent from August 2018.
The five-year average for August unit sales is 1,522. “August’s ten percent increase in unit sales from 2018 is over twice the percentage increase experienced last year and three times higher than the previous August,” reports Dwight Delahunt, Ottawa Real Estate Board President. “However, 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 per cent from last year while the average sale price of a residential-class property was $484,921, an increase of 11.8 per cent from a year ago. Year to date figures show an 8.4 per cent and 7.9 per cent increase in average sale prices for residential and condominiums respectively. * “Year to date average prices, which are more reliable indicators than monthly average prices, show steady, reasonable, and sustainable increases.
We don’t anticipate there will be a major correction in the foreseeable future,” Delahunt maintains. The $350,000 to $499,999 price range was the most prevalent price point in the
residential market, accounting for 42 per
cent of August’s transactions while 27
per cent of residential sales were in the
$500,000 to $749,999 range. The most
active price point in the condominium
market has increased again in 2019 to
$250,000-$399,999, accounting for 50 per
cent of the units sold.
“As to be expected, now that the units
in the lower end of the condo market
have been acquired, there appears to be
another upward movement in the prices
of available condominiums,” Delahunt
points out. “Statistics show the higher
end of the residential market has picked
up with the doubling of unit sales in the
$750K to $1M price range from this time
last year,” he adds.
When questioned about the government’s
First-Time Home Buyer Incentive (FTHBI)
which came into effect on September 2,
Delahunt cautions, “It’s too early to tell
what the impact will be or if there will be
any impact in Ottawa’s market – these
measures are not helping the supply
side. We continue to call on all three
levels of government to implement
actions to increase supply which will
facilitate restoring balance to our local
real estate market.”
“Coming into the fall months, which are
typically busy, we expect the market
will continue to pick up steam,” he
speculates. “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.”
In addition to residential sales, OREB
Members assisted clients with renting
1,906 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