Interesting numbers released by the Ottawa real estate market this week. The number of sales are down over 12% in the residential class segment. At first glance, one would think it is a slow market but the lack of sales is only because of the extremely tight supply. There is just not much available to buy right now. This is putting upward pressure on prices. As an example, I have a listing that sold in 2017 for $475k. This year it sold for close to $560k. No real work was done on it. It is incredible to see some of these price gains. Much of this appreciation is in the entry-level segment of the market. It is also very much neighbourhood dependent.
I have been saying in my annual reports for years that Ottawa is undervalued. It seems that others are starting to catch on and maybe we are having a correction of prices. They are just going up rather than down. Our population growth was pegged at 8.8% this year. That coupled with the really good local economy and still relative affordability in the housing market and you have this perfect storm of factors. My hope is that we see a higher than average number of homes for sale this Spring. This would help ease the pressure facing buyers and prices in this market! If you have any questions on your neighbourhood feel free to get in touch.
It was another strong month for real estate sales in Ottawa. Members of the board sold 1,005 residential properties, that is up from 978 last year. What is more impressive is that this was done while the inventory is down. The low inventory has left buyers competing over fewer homes. The sales numbers would have been much higher if there was more available for sale. This has spiked the average home price to over 8.6% when compared to February of 2018. The lack of inventory tells me that this trend will continue likely throughout the year. We could continue to see upward pressure on prices. To put it in perspective we have 40% less available homes when compared to February of 2017 with more demand.
The average price of a residential-class property in Ottawa last month was $466,540. The condo market is also lacking inventory holds down an average price of $288,000, this is up 5.6% compared with February of last year.
In the big picture, Ottawa remains the most stable real estate market in North America. Historically we have always posted gains year to year and have weathered economic storms better than any other housing market. This year we are starting to see weakness in other market centres while Ottawa continues to thrive. This is because our housing is still relatively affordable considering our high household income averages. How long I will be about to tout that is uncertain! Everything points towards an extremely active Spring market.
As always I encourage everyone to think about investment properties. It has been one of the most consistent ways to build wealth. We are fortunate to have such a great opportunity in our backyard. Prices are still affordable but for how long we shall see.
If you are curious to know whats happening in your neighbourhood please feel free to get in touch.
January is usually one of the slowest months of the year in real estate and although we had record low temperatures and lots of snowfall… the Ottawa market was hot. In January the residential and condo property classes there were 820 homes sold. That is a large jump to a 15.8% increase in units sold over January 2018. This is the highest increase Ottawa has experienced in decades. This could be a sign of things to come for our 2019 housing market.
The average sale price for homes in Ottawa continues to rise over last year’s numbers. In January we saw a 1.5% increase in the residential class property and in the condo property class we saw an increase of 7.7% over January 2018.
The $300,000 to $449,000 range remains the most active price point in the residential market contributing to 42.5% of homes sold. The $175,000 to $274,999 price range was the most active price point for the condos market in Ottawa, accounting for almost 54.1% of the units sold. If you are interested in finding out the market trends in your neighbourhood, please feel free to get in touch.
The Ottawa real estate market has been so interesting to track over the past 12-18 months. It simply continues to stay heated while other major markets in Canada cool.
Here is great insight from our board president Ralph Shaw:
“When you look at what’s happening in real estate markets across Canada, Ottawa’s market performance is the polar opposite, Our market fundamentals are very strong, and we have experienced steady growth for many years, and indeed decades.”
This is kinda what I have been saying in all my recent newsletters. The foundation of our market is so solid with record unemployment and high consumer confidence. Affordability is still very good in relation to our incomes. As we examine November sales numbers we see the drop in sales by 7.2% Over November of last year. This is a reflection of the lack of inventory available to buyers, not any type of cooling in the market. Good inventory is tough to find. Keep in mind most sellers also need a good property to purchase before they put their houses for sale. I think next year we will see some easing of this inventory challenge.
If you are curious to know what is going on in your neighbourhood, please feel free to get in touch.
Each year CMHC releases detailed reports on each of Ottawa’s major market centres. Interestingly, Ottawa is the only city to experience continuous growth in both sales and prices since 2015. We are outperforming other markets because of our healthy economy and relative affordability. The unemployment rate is at its lowest rate in a decade. CMHC suggests prices will continue to climb in both 2019 and 2020 in Ottawa. Which makes me wonder why everyone does not have an investment property.
I am a proponent of having real estate as part of any balanced portfolio. We have one of the best real estate markets in the world for this right here in Ottawa. Our prices are still affordable and the most recent vacancy rate in Ottawa was 1.4%. This is extremely low. There are multiple bids on rentals right now! Many first time buyers are being priced out of the market. It may be now or never-prices may rise to the point of no return.Here is what is happening in the Ottawa market.
The average sale price for homes in Ottawa continues to rise over last year’s numbers. In October we saw a 5.7% sale price increase in the residential class property and in the condo property class we saw a slight increase of 0.6% over October 2017. The continued low inventory in Ottawa isn’t slowing down the number of units sold. They are still at an all-time high over the past 5 years. In total there were 1,383 homes sold in both property classes in October which is an increase 11.8% over last year. The number of condo units sold last month soared into the double digits with an increase of 24.1% units sold over last October.
The $300,000 to $449,000 range remains the most active price point in the residential market contributing to 43% of homes sold. The $175,000 to $274,999 price range was the most active price point again for the condo market in Ottawa, accounting for almost 53% of the units sold. If you are interested in finding out the market trends in your neighbourhood, please feel free to get in touch.
The average sale price for homes in Ottawa continues to rise over last year’s numbers. In September we saw a 7.9% increase in the residential class property and in the condo property class we saw an increase of 7.6% over September 2017. These are very impressive numbers. Even with a continued low inventory in Ottawa, the number of homes sold is at an all-time high over the past 5 years. If we had more listing for sale we would have shattered the record in September. In September the residential and condo property classes there were 1,393 homes sold.
The $300,000 to $449,000 range remains the most active price point in the residential market contributing to 46% of homes sold. The $175,000 to $274,999 price range was the most active price point for the condos market in Ottawa, accounting for almost 57% of the units sold. If you are interested in finding out the market trends in your neighbourhood, please feel free to get in touch.
The Ottawa summer real estate market was busier than normal. No surprise to see strong August numbers coming through from the Ottawa real estate board. I think this trend will continue in the fall months ahead. The city continues to have low inventory which has put an upward pressure on prices. Even with the rising prices by all economists measures we still do live in a relatively affordable city. I am not sure how much longer I will be able to say that. A couple years at the most I believe. People are catching on to just how great Ottawa is.
The 300k to 450k price range in residential properties remains to be the most active price point. The condo market continues to be a great story. Sales are up over last year over 10%. The condo market continues to fill in the gap as we deal with the low residential inventory
If you are curious to know what’s happening in your neighbourhood please get in touch.
It was another robust month of sales in Ottawa real estate. Over 1600 properties changed hands. That is a big number considering the 5-year trend is at about an average of 1500 units sold in July. Sales are up 6% compared to last year same time. Residential prices are up 5% over July of last year in both the condo and residential property markets. Nice gains for Ottawa homeowners for sure. Here is look at the numbers:
The 300k to 450k price range in residential properties accounted for 45% of all sales. This is a very active price range right now for Ottawa real estate. So hot right now! The condo market has made a great comeback and there are lots of factors to remain bullish on our local economy. It is a complex real estate market right now. Lots of moving parts on almost every deal. Including new financing requirements, shorter conditional periods, foreign buyers, and multiple offers. Lots to navigate right now. It is more important now to have the expertise of a great Realtor if you plan on buying or selling real estate in Ottawa.
If you are curious to know what’s happening in your neighbourhood please feel free to get in touch.
The Ottawa real estate market continues to impress. We are certainly the leader in Canada right now in terms of market activity.
Let’s look at the numbers. Our average price for a residential-class property was up 3.4% over last June, sitting at $449,200. In the residential-class property segment, there were 1,615 units sold which is a decrease of 8% over last June. In the condo market, 455 units sold, which is an increase of 11.5% from last June. The condo prices in Ottawa increased by 1.2% with the average sale price at $293,303.
The increase in condo unit sales is due to the lack of inventory in the residential-class property segment. The increasing prices have also pushed Ottawa buyers towards more affordable condo options. In previous years we had an oversupply of condos in Ottawa but they are now helping with the overall shortage of the residential-class properties. The average consecutive days on market for condos is down 39.4%.
There are still lots of bidding wars happening in the Ottawa market but it seems to be a little bit less competitive in the suburban neighbourhoods when compared with say 2-3 months ago. Inventory is still tight but there are signs that the market is settling down a bit. This will be welcome news to some buyers. If you are curious to know whats happening in your area please feel free to get in touch.
Housing inventory has been a concern this year and is so far not keeping up with the insatiable demand for Ottawa real estate. Our inventory is at historically low levels. Especially in the central locations. This will continue to put upward pressure on prices. In May I witnessed a few houses sell for way over their already high list prices in extremely competitive offer situations. Both were staged impeccably but were very small inside. Some buyers are getting desperate and will pay a huge premium for the right location.
Let’s look at the numbers. Our average price for a residential-class property was up 6.3% over last May, sitting at $464,401. In the residential-class property segment, there were 1,794 units sold which is a decrease of 3% over last May. In the condo market, 485 units sold…. which is an increase of 9.2% from last May. The condo prices in Ottawa increased by 3.4% with the average sale price at $281,247.
As prices rise up in this market it is so important to have the right representation. On the buying side, you need to make sure that you are making a prudent investment. For sellers, you want to make sure you are taking advantage of the hot conditions.
