Ottawa resale market on the up and up
Ottawa, September 5, 2013 Members of the Ottawa Real Estate Board sold 1,219 residential properties in August through the Board’s Multiple Listing Service® system, compared with 1,145 in August 2012, an increase of 6.5 per cent. The five-year average for August sales is 1,202.
“It has been one year since the Canadian Government introduced the new mortgage rules, and although the Ottawa market has been slow-moving since the beginning of the year, this month’s numbers are quite the opposite,” says Tim Lee, President of the Ottawa Real Estate Board. “With both residential and condo units sold up a respectable amount since last year, it breaks the downward cycle. In addition, average sale prices evened out in August, creating a welcomed lull in inflating property prices.”
August’s sales included 272 in the condominium property class, and 947 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.
The average sale price of residential properties, including condominiums, sold in August in the Ottawa area was $348,519, a slight increase of 0.4 per cent over August 2012. The average sale price for a condominium-class property was $257,494, a decrease of 5.4 per cent over August 2012. The average sale price of a residential-class property was $374,663, an increase of 1.8 per cent over August 2012. The Board cautions that average sale price information 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 average sale price is calculated based on the total dollar volume of all properties sold.
“Inventory on hand has decreased since last month, and is starting to return to more normal levels,” says Lee. “Ottawa continues to be a healthy, balanced market, and as always, a great city to live in. With a strengthening economy and historically low interest rates, Ottawa consumers remain in a very enviable position.”
The following charts have been prepared by Royal LePage Performance Realty using data from the MLS® system maintained by the Ottawa Real Estate Board and includes resales of properties in both the residential and condominium property classes.
Please note that the information presented below is across Ottawa, and is useful for seeing trends but is not necessarily indicative of the performance of specific properties or neighbourhoods.
Although this year began with significantly fewer sales until May than 2010, 2011 and 2012, August is in line with those previous years.
It is taking longer to sell homes this year.
Average Sale Price is still above previous years, though a lesser increase than usual.
There are more homes for resale than in previous years (a certain increase is to be expected anyway as more homes and condos are owned and a certain percentage of the population can be expected to move). However, in conjunction with the chart below (Listings Taken), we see that there are not many more listings being added each month than there were last year, but they aren't selling as quickly.
Similar numbers of homes being put up for sale.
Tying together the number of sales vs the number of listings, it indicates that we are still in a "Balanced Market", but getting closer to a Buyers Market.
These charts have been prepared by Royal LePage Performance Realty using data from the MLS® system maintained by the Ottawa Real Estate Board and includes resales of properties in both the residential and condominium property classes.
Please note that the information presented below is across Ottawa, and is useful for seeing trends but should not be considered as indicative of the performance of specific properties or neighbourhoods.