Some Key points to take from the News Release Below and Ottawa Real Estate Market in January 2019:
- Ottawa Realtors sold 820 residential properties in January 2019 through the MLS system, compared with 708 in January 2018, a increase of 15.8 %
- Out of the 820 sold units the breakdown is: 611 in the residential property class, a rise of 14.2% from a year ago, and 209 in the condominium property class, an increase of 20.8% from January 2018..
- The average sale price of a residential class property sold in January 2019 in the Ottawa area was $432,829, an increase of 1.5% over January 2018
- The average sale price for a condominium class property in January 2019 was $283,990 an increase of 7.7% from this month last year.*
- The $300,000 to $449,999 range remains the most active price point in the residential market, accounting for 42.5 % of home sales
- Between $175,000 to $274,999 was the most active price point in the condominium market for January 2019, accounting for almost 54.1 % of the units sold.
- Affordability and high rental costs is pushing people towards cost affective condos which is driving that market
This January was a very busy month for Ottawa Real Estate and the snow didnt affect the very active buyers even with a record snow fall . The biggest reason for a higher volume of sales in in January 2019 compared to January 2018 is that there was a lot less inventory and as The Bank of Canada held the rates instead of increasing it gave people a another push to get there pruchase going. 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 perrming 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 January 2019 Report from the Ottawa Real Estate Board and my thoughts:
There was 820 residential properties SOLD in January through the Board , compared with 708 in January 2018, a increase of 15.8% . This has a lot to do with the holiday season just ending and buyers are back active and are needing to make a purchase now aswell there is alot of buyers that are backed up from the fall who are still trying to find the right home . The other part of course is 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 January 2019 in the Ottawa area was $432,829 an increase of 1.5% over January 2018. 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 great increase in sales volume in January 2019 and saw a decent sized increase in average price this month compared to January 2018. 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 and first time home buyers so this is part of the reason for the increase in sales volume and increases in value. There was 209 sales in the condominium class, a increase of 20.8% from January 2018 and the average sale price for a condominium property was $283,990 an increase of 7.7 % from this month last year.
A few weeks ago we saw Bank of Canada decide to not increase the rate and soon we saw the big banks start decreasing the interest rates which was a surprise but this is because nationally the market is taking a hit because of the stress tests such as Toronto and Vancouver which are the biggest real estate markets have taking dives in sales and price even though Ottawa is seeing increases in both demand and prices. The next Bank of Canada rate announcement is March 6th, 2019 were we will here what they are doing with rates.
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 theOttawa Market. This past year in January was one of the busiest January I have seen and almost feels like the spring market has come early.
Check out full article from Ottawa Real Estate Board Below
"January’s Record-Breaking Home Sales!
February 5, 2019
Members of the Ottawa Real Estate Board sold 820 residential properties in January through the Board’s Multiple Listing Service® System, compared with 708 in January 2018, an increase of 15.8 per cent. January’s sales included 611 in the residential property class, a rise of 14.2 per cent from a year ago, and 209 in the condominium property class, an increase of 20.8 per cent from January 2018. The five-year average for January sales is 683.4.
“January is typically one of the slowest months of the year for local real estate. Yet, in spite of the record cold and snowfall, unit sales are up almost 16%. This is the highest number of January transactions we have experienced in decades,” states Ottawa Real Estate Board’s 2019 President, Dwight Delahunt.
“Buyers are extremely motivated, despite the weather, and properties are moving very quickly as days on market continue to decline,” he adds. “If you’re thinking of selling, you don’t have to wait for spring. A REALTOR® is in the best position to assist in this active market where buyers are waiting for the opportunity.”
The average sale price of a residential-class property sold in January in the Ottawa area was $432,829, an increase of 1.5 per cent over January 2018. The average sale price for a condominium-class property was $283,990, an increase of 7.7 per cent from this month last year.*
“Even though inventory is at its lowest level in years, Ottawa’s home prices reflect reasonable appreciation. New builds are helping prices remain stable with homebuilders adding enough supply to keep the market equitable. We don’t have the supply constraints of Toronto and Vancouver because we have serviceable lots within a 20-minute drive,” Delahunt points out.
“Similar to the fact that you don’t need to own a BMW to get where you want to go, some of the more expensive neighbourhoods in the city are a lifestyle choice. The fact is there is quality affordable housing available for almost every level of homebuyer in Ottawa.”
The $300,000 to $449,999 range continued to represent the most active price point in the residential market, accounting for nearly 42.5 per cent of January’s sales while 22.7 per cent of 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 54.1 per cent of the units sold.
When asked what he forecasts for the upcoming year, Delahunt speculates, “Based on last month’s sales, I’d say we go with Wiarton Willie’s prediction – it will likely be an early spring for the real estate market as well.”
In addition to residential and condominium sales, OREB Members assisted clients with renting 169 properties in January 2019.
* 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 December 2018 then check out the link below please:
December 2018 stats: https://www.soldbysorin.com/node/1001170
Full sales data is attached in Blog
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