Condominium sales continue to pave the way in Ottawa’s real estate market, with sales rising an incredible 16.8 per cent since the same time last year. This is likely fueled by a current lack of inventory in the lower price points of the residential market. The first half of 2018 saw a decrease of 37 per cent in the number of single-family units sold at the $250-275K price point and a 41 per cent decrease for the $275-300K price range. Condo sales, on the other hand, saw a distinct increase, rising 49 per cent at the $250-275K price point and 22 per cent in the $275-300K price range.
First time buyers are keen to get their foot on the property ladder and, with the low inventory and rising home prices, are turning to condo ownership in order to achieve this. The previous problem of oversupply in the condo market is now helping to ease the current lower price point residential inventory shortage.
The reduction in inventory could also be affecting the year to date average Days on Market (DOM) in both property classes, as inventory is moving much faster than the previous year. For residential homes, the DOM has decreased 18 per cent since last June. For condos, the DOM has decreased 27 per cent in the last year.
- Members of the Ottawa Real Estate Board sold 2,070 residential properties in June (a decrease of 4.3 per cent from the previous year).
- 1,615 sales in the residential property class with an average sale price of $449,200.
- 455 sales in the condominium property class with an average sale price of $293,303.
- Year to date, residential properties have seen a 5.2 per cent increase in average price with a 1.1 per cent price increase for condominiums.
“Ottawa’s real estate market continues to move forward at a reasonable pace. Undoubtedly, inventory remains low, but our property prices continue to be stable and affordable. We are very fortunate not to be experiencing the volatility of other markets in our country,” states Ralph Shaw, Ottawa Real Estate Board President.
If you are looking to sell this year, now is a great time to put your home on the market. If you are seeking any kind of support in listing your home, purchasing a new home, or in learning more about how the current change in mortgage regulations could affect you, please contact our team of expert Realtors® at Royal LePage Performance Realty today. For more information on monthly real estate statistics in Ottawa, visit the Ottawa Real Estate Board.
