Hot market
in scorching July
OTTAWA, November 5, 2019 - Members of
the Ottawa Real Estate Board sold 1,607 residential properties in October
through the Board’s Multiple Listing Service® System, compared with 1,375
in October 2018, an increase of 16.9 per cent. October’s sales included
1,211 in the residential-property class, up 15 per cent from a year ago,
and 396 in the condominium-property category, an increase of 23 per cent
from October 2018. The five-year average for October unit sales is 1,319.
“New listings are down, inventory remains scarce, and yet more homes changed
hands this October than in the past decade and a half,” reports Dwight Delahunt,
President of the Ottawa Real Estate Board. “It’s perplexing at first; however,
when you consider the current breakneck transaction pace in the Ottawa resale
market, often requiring homebuyers and sellers to make swift decisions, it
makes sense.”
“October’s average Days on Market (DOM) for residential properties decreased
by 10 days to 33 days, and the DOM for condominiums decreased to 28 days
from the average 47 days experienced this time last year. Year to date figures
show 31 DOM (down 8 days) for residential properties and 35 DOM (16 fewer
days) for condominiums. Products are flying off the shelves, so to speak.”
October’s average sale price for a condominium-class property was $319,208,
an increase of 18.3 per cent from last year while the average sale price
of a residentialclass property was $483,405, an increase of 7.6 per cent
from a year ago. Year to date figures show an 8.3 per cent and 9.1 per cent
increase in average sale prices for residential and condominiums, respectively.*
“We are seeing slightly above-average climbs in home prices this year, and
the equity in many properties is undoubtedly increasing, which is great news
for homeowners. Still, the growths are reasonable considering the state of
the market and Ottawa retains its reputation of being one of the country’s
most affordable cities where residents can enjoy a high quality of life,”
Delahunt acknowledges.
The most active price range in the condominium market was $225,000- $349,999,
accounting for 53 per cent of the units sold while $350,000 to $499,999 represented
the most prevalent price point in the residential market, accounting for
43 per cent of October’s transactions. Residential properties in the $500,000
to $749,999 range increased to 30 per cent of all residential resales.
“We are noticing a significant uptick in residential properties sold in the
$500-750K price range. This price point now represents almost 1 in every
3 home sales.”
“Even though there are incidences of multiple offers and homes sold for over
market value, the reality is that approximately 36% of homes are selling
over asking, compared to 21% at this time last year. It is a phenomenon that
is affecting specific pockets of the city, but certainly not every neighbourhood
or property type.”
“Sellers should use the knowledge of a REALTOR® to understand the complexities
of their home’s positioning. Buyers require timely guidance on how to put
in an attractive offer in this fast-paced market — and both parties must
understand the intricacies of the contracts they are signing,” Delahunt advises.
In addition to residential sales, OREB Members assisted clients with renting
2,334 properties since the beginning of the year.
* The Board cautions that the average sale price 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 calculation of the average sale
price is based on the total dollar volume of all properties sold. Price and
conditions will vary from neighbourhood to neighbourhood.
|
Year
|
Average Sale Price
|
%
change
|
1956
|
$13,351
|
0.2
|
1957
|
$14,230
|
6.6
|
1958
|
$15,564
|
9.3
|
1959
|
$16,038
|
3.1
|
1960
|
$16,791
|
4.7
|
1961 |
$16,070
|
-4.3
|
1962 |
$15,952
|
-0.7
|
1963 |
$16,549
|
3.7
|
1964 |
$16,563
|
0.1
|
1965 |
$17,056
|
3.0
|
1966 |
$18,004
|
5.6
|
1967 |
$19,476
|
8.2
|
1968 |
$23,329
|
19.8
|
1969 |
$25,652
|
10.0
|
1970 |
$26,532
|
3.4
|
1971 |
$27,808
|
4.8
|
1972 |
$30,576
|
10.00
|
1973 |
$38,305
|
25.3
|
1974 |
$46,661
|
21.8
|
1975 |
$49,663
|
6.4
|
1976 |
$54,623
|
10.1
|
1977 |
$57,032
|
4.4
|
1978 |
$59,134
|
3.7
|
1979 |
$61,896
|
4.7
|
1980 |
$62,748
|
1.4
|
1981 |
$64,896
|
3.4
|
1982 |
$71,080
|
9.5
|
1983 |
$86,246
|
21.3
|
1984 |
$102,084
|
18.4
|
1985 |
$107,306
|
5.1
|
1986 |
$111,643
|
4.0
|
1987 |
$119,612
|
7.1
|
1988 |
$128,434
|
7.4
|
1989 |
$137,455
|
7.0
|
1990 |
$141,438
|
2.9
|
1991 |
$143,361
|
1.4
|
1992 |
$148,868
|
0.4
|
1993 |
$148,129
|
3.0
|
1994 |
$147,543
|
-0.4
|
1995 |
$143,193
|
-2.9
|
1996 |
$140,534
|
-1.9
|
1997 |
$143,873
|
2.4
|
1998 |
$143,953
|
0.1
|
1999 |
$149,650
|
4.0
|
2000 |
$159,511
|
6.6
|
2001 |
$175,971
|
10.3
|
2002 |
$200,711
|
14.1
|
2003 |
$218,692
|
9.0
|
2004 |
$235,678
|
7.8
|
2005 |
$244,531
|
3.8
|
2006 |
$255,889
|
4.7
|
2007 |
$272,618
|
6.54
|
2008 |
$290,366
|
6.51
|
2009 |
$303,888
|
4.66
|
2010 |
$327,225
|
7.68
|
2011
|
$343,284
|
4.91
|
2012
|
$351,792
|
2.48
|
2013
|
$357,348
|
1.58
|
2014
|
$361,707
|
1.22
|
2015
|
$367,629
|
1.64
|
2016
|
$397,933
|
1.12
|
2017
|
$424,947
|
5.4
|
2018
|
$446,661
|
5.1
|
|