The current spring real estate market in Ottawa has been described as a ‘Catch-22’ situation by Dwight Delahunt, President of the Ottawa Real Estate Board. The continued low supply of homes for sale, when paired with the recently introduced mortgage stress test and rising home prices, means that new buyers may be limited in their purchasing options for the foreseeable future.
This continued lack of inventory, with residential supply down 18% and condo inventory down almost 40% from last April, also means that potential sellers are reluctant to put their homes up for sale when buying within the same market. Limited options can also be attributed to a reduction in new constructions becoming available.
“An active market with limited supply is inherently going to put upward pressure on prices,” Delahunt explains. “However, this bodes well for the condo market by which the absorption is allowing for the rebounding and recovery of its price points.”
- Members of the Ottawa Real Estate Board sold 2,032 residential properties in April 2019 (an increase of 0.4 percent from the previous year).
- There were 1,594 sales in the residential property class (on par from a year ago) with an average sale price of $488,729.
- April saw 438 sales in the condominium property class (an increase of 5.3 percent from April 2018) with an average sale price of $307,659.
- The increased $350,000 to $499,999 range is now the most active price point in the residential market, accounting for 44 percent of home sales.
- The most active price point in the condominium market, which increased to the $225,000-$349,999 price range last month, accounted for 46 percent of the units sold.
Planning to buy your first home this year? You may be unaware of the additional costs and fees involved when buying a home. Make sure to read our latest blog “Buying a Home: What Does it Really Cost?” to learn about these costs upfront. They may impact the type of mortgage you qualify for, as well as the size of your down payment, and even your offer.
If you are seeking any kind of support in listing your home, purchasing a new home, or in learning more about the current real estate market in Ottawa, 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.