The Ottawa real estate market has continued to stabilize. The record rise in prices seems to be trailing off. This is welcome news for buyers. You can see this in the numbers that were released from the Ottawa Real Estate Board.
Last month there were 1,312 residential properties sold, compare that to 2,183 in July 2020 and there is a decrease of 20%. Condo properties sold numbered 412, down 24% from this time last year. Now last year we were coming out of a lockdown in Spring so those numbers are a bit inflated because the Spring market was pushed more to the summer months. Month over month prices are down for the 3rd consecutive month, although still nice gains year over year of 30% on residential class property and 20% on the condo class.
The frenzy that was a few months ago has settled. Instead of every property going into multiples it is now just the cream of the crop that attract the frenzy. Make no mistake this is still a seller’s market and some houses are still getting double digit offers. It is just not the norm. Sellers need to have realistic expectations of the current market conditions. Many sellers right now are coming in too high and are sitting on the market. They want to list high and get the bidding war. You can’t have your cake and eat it too! I think a hybrid approach is working best.
Housing stock is increasing with residential inventory up 19% and condominium supply up 23%, higher than 2020.
There were fewer listings in July vs. June, however, the number of properties that entered the market in July is over the five-year-average. This along with seeing housing prices stabilize, it seems we are headed towards a more balanced market in the months ahead.
As always if you are interested in knowing what is going on in your neighbourhood or have any questions, please feel free to reach out.