Ottawa Real Estate Board Stats for December 2018- "Another Stellar Year for Ottawa’s Real Estate Market"
Some Key points to take from the News Release Below and Ottawa Real Estate Market in December 2018 and the year 2018 as a whole for Ottawa Real Estate:
- Ottawa Realtors sold 663 residential properties in December 2018 through the MLS system, compared with 765 in December 2017, a decrease of 13.3%
- Out of the 663 sold units the breakdown is: 471 in the residential property class, a decrease of 15.7% from a year ago, and 192 in the condominium property class, an decrease of 6.8% from December 2017..
- The average sale price of a residential class property sold in December 2018 in the Ottawa area was $453,011, an increase of 4.7% over December 2017
- The average sale price for a condominium class property in December 2018 was $278,295 an increase of 9% from this month last year.*
- The total number of residential and condo units sold throughout all of 2018 was 17,476, compared with 17,065 in 2017. Residential property class sales decreased slightly to 13,418 from 13,478 in 2017 and condominium property class sales were up 13.1% with 4,058 units sold in 2018 versus 3,587 in the previous year.
- The $300,000 to $449,999 range remains the most active price point in the residential market, accounting for 45 % of home sales
- Between $175,000 to $274,999 was December most active price point in the condominium market, accounting for almost 55.7 % of the units sold.
- Affordability and high rental costs is pushing people towards cost affective condos which is driving that market
This December was feeling a bit slower than usual but overall was still a good month for Ottawa Real Estate. The biggest reason for a lower volume of sales in in December 2018 compared to December 2017 is that there was a lot less inventory on the market this year and I bet if there was more inventory we could have possibly beat last year sales volume. The strong activity is not in all areas of the city and not on all homes so it is important to understand that just because the inventory is low in one area that it is low in other areas. Each neighborhood and area of the city has different demands and needs; so talk with someone to understand if your neighborhood is performing well on sales and price increases or to just get a general idea of demand for the area.
Let’s take a closer look at the December 2018 Report from the Ottawa Real Estate Board and my thoughts:
There was 663 residential properties SOLD in December through the Board , compared with 765 in December 2017, a decrease of 13.3% . This of course has a lot to do with the holiday season and of course that there is still very low inventory in most of the popular or in demand parts of the city such as the West, South and downtown area. The average sale price of a residential property sold in December 2018 in the Ottawa area was $453,011 an increase of 4.7% over December 2017. This increase in price is a sure sign that people are willing to pay more for a home in this sellers’ market and low inventory is driving prices higher but with such record low inventory we would typically see a lot higher increases in overall prices so it shows me that even though we have a strong market buyers aren’t willing to over pay.
The Condo market had a small decrease in sales volume in December 2018 but saw a good sized increase in average price this month compared to December 2017. This trend will continue I think for condos for another little bit until we see more condo projects coming out to compete with resale condos market but as of right now they are the most affordable option for most people an first time home buyers so this is part of the increase in sales volume and increases in value. There was 192 sales in the condominium class, a decrease of just 6.8% from December 2017 and the average sale price for a condominium property was $278,295 an increase of 9 % from this month last year.
We will see this coming Wednesday January 9th if the Bank of Canada will make any changes to the interest rates and an overview of changes coming in the New Year. There will also be also be a lot of reports coming out from the big banks and CMHC ( Canada Mortgage Housing Corporation) as for reports for 2018 and forecast for this year which are important to read and understand .
Ottawa is still growing quickly and with a lot of major developments and changes throughout the city this is a great to time buy and invest in the Ottawa Market. This past year in 2018 was a crazy year for Real Estate which a lot of us have never seen as we went from a stale buyers’ market with too much inventory available for many years and then as the mortgage rules and interest rates started to change we saw big changes come quickly with sales growing and inventory going down and part of that also is because of an increase of buyers and investors coming outside of Ottawa. This coming year I do suspect that the market in Ottawa will be more balanced for buyers and sellers and interest rates will increase. I did a blog on my forecast for 2019 which the link can be found below.
Check out full article from Ottawa Real Estate Board Below
“Another Stellar Year for Ottawa’s Real Estate Market
January 4, 2019
Members of the Ottawa Real Estate Board sold 663 residential properties in December through the Board’s Multiple Listing Service® System, compared with 765 in December 2017, a decrease of 13.3 per cent. December’s sales included 471 in the residential property class, a drop of 15.7 per cent from a year ago, and 192 in the condominium property class, a decrease of 6.8 per cent from December 2017.
Year to date activity increased by 2.4 per cent from 2017. The total number of residential and condo units sold throughout all of 2018 was 17,476, compared with 17,065 in 2017. Residential property class sales decreased slightly to 13,418 from 13,478 in 2017 and condominium property class sales were up 13.1 per cent with 4,058 units sold in 2018 versus 3,587 in the previous year.
“For the last decade, we have experienced steady growth in our real estate market from volume to prices; however, the past two years have jumped significantly in activity with a 12.6% increase in unit sales from 2016. Ottawa, and its surrounding area, has excellent employment numbers and has proven to be one of the most affordable larger cities in the country,” proclaims Ralph Shaw, Ottawa Real Estate Board’s 2018 President.
“What has come to a head in 2018 is the overall shortage of inventory which is extreme in certain pockets of the city. While this has caused unit sales to slide in the residential market, it has fueled the condominium market which has recovered and carried us through much of 2018. We have been predicting this will bode well for new construction in delayed high-rise projects,” he adds.
“Another significant factor affecting the market in 2018, and first-time homebuyers in particular, is the mortgage stress test – an attempt by the federal government to cool two major markets in the country. It has also unfortunately made move-up buyers less likely to take that step and free up entry-level options, which is an important part of the resale market,” Shaw points out.
The average sale price of a residential-class property sold in December in the Ottawa area was $453,011, an increase of 4.7 per cent over December 2017. The average sale price for a condominium-class property was $278,295, an increase of 9 per cent from this month last year. Year-end figures show an average sale price of $446,661 for residential-class properties in 2018, a 5.1 per cent increase from 2017 and $278,316 for condominium properties, up 3.2 per cent from last year.*
“In 2019, we expect the economic fundamentals of supply and demand to be at play with upward pressure on prices due to limited supply and increasing demand. Buyers do have affordable options in outlying communities if they are willing to commute — or they will simply have to pay more provided they can qualify. New builds and purpose-built rental housing could help ease some of the pressure, particularly if builders are able to provide a variety of quality options allowing for more movement in the market,” Shaw concludes.
The $300,000 to $449,999 range continues to represent the most active price point in the residential market, accounting for nearly 45 per cent of December’s sales while almost one in four sales were in the $500,000 to $750,000 price range. Between $175,000 to $274,999 remained the most prevalent price point in the condominium market, accounting for 55.7 per cent of the units sold. Year-end figures echoed these dominating price points holding 45.6 per cent of the residential market and 49.8 of the condo market respectively.
In addition to residential and condominium sales, OREB Members assisted clients with renting 2,713 properties since the beginning of the year down from 2,977 from this time last 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.”
Thank you to Ottawa Real Estate Board for the article and can also be found on their website and the link below:
This is can be a great time to get your house on the market to sell in Ottawa as the inventory is still low again but I feel that it won’t be like this for long as we get closer and closer to spring. If you thinking of getting your home on the market soon or in the future please contact me and we can see exactly how the market has affected your home value.
If you would like to see the details on the Ottawa Real Estate Stats for last the previous month of November 2018 and my Forecast for the 2019 Ottawa Real Estate Market then check out the link below please:
November 2018 stats: https://www.soldbysorin.com/node/995269
2019 Forecast – Ottawa Real Estate Market - https://www.soldbysorin.com/node/1000153
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