Low Inventory throughout Ottawa makes buying home difficult- Ottawa Real Estate February 2018 Stats
As we now get into March we take a look back at the Ottawa Real Estate Market stats for February 2018 and just like last month we are still seeing a strong Sellers market. The inventory levels continue to be low so in most cases we are seeing a lot of properties get sold over asking or at least have multiple bids on the property so overall prices are rising in most neighborhoods. I recently re-listed a town home in the South of the city for a client where last year we were asking $399,,000 and now 1 year later we are asking for $430,000 for the same house and getting the price we are wanting aswell as the closing preference of our choice. This example is to show just how strong the demand for housing is at this moment and why if you are looking to sell your home then DO NOT WAIT FOR SPRING and get your home on the market now while there is no competition.
We are seeing some good action on Ottawa Condos also as the supply for them is continuing to go down also which is very nice to see as condo market in Ottawa has not been great for resale value so hopefully this will help in correcting the pricing.
This is the first time I have seen the market in Ottawa this strong and it is exciting to see. Throughout the city we are seeing alot of major developments built or being announced so Investors in Canada are seeing this as a great place to invest in. Ottawa is growing very rapidly and with that will come times like this where supply just is not enough for the demand but I do think that with Spring market around the corner we will see some good sized interest rate hikes get announced and then we should see inventory increase abit to give better choices and chances for Ottawa Home buyers.
Some Key points to take from the News Release Below and Ottawa Real Estate Market in 2018:
- 979 residential properties in February 2018 compared to 1,002 in February 2017, a decrease of 2.3 per cent
- average sale price of a residential property sold in February in Ottawa was $429,600, an increase of 2.7 per cent over February 2017
- The average sale price for a condominium-class property was $273,174, an increase of 5.6 per cent from February 2017
- The most active price point in the residential market continues to be the $300,000 to $449,999 range, accounting for 47 per cent of the market
Check out full article from Ottawa Real Estate Board Below
Wanted: Ottawa Homes for Sale
March 5, 2018
"Members of the Ottawa Real Estate Board sold 979 residential properties in February through the Board’s Multiple Listing Service® System, compared with 1,002 in February 2017, a decrease of 2.3 per cent. The five-year average for February sales is 922. February’s sales included 250 in the condominium property class and 729 in the residential property class.
“There is no doubt our sales numbers would have been much higher if we had more properties available for sale. Buyer demand is there, but our inventory in both residential-class and condos continues to decline. This is creating a supply side issue in the Ottawa real estate market,” concludes Ottawa Real Estate Board President, Ralph Shaw. “If this trend continues, the market will move to favour sellers, and buyers will find themselves competing for a limited number of listings.”
“Compounding the supply issue is the fact that after a record year last year, new construction is hindered getting to market because builders just cannot find enough land as a result of the urban boundary and land prices going up,” Shaw points out. “Given this environment, it’s a good opportunity for Sellers to get their property on the market,” he advises.
The average sale price of a residential-class property sold in February in the Ottawa area was $429,600, an increase of 2.7 per cent over February 2017. The average sale price for a condominium-class property was $273,174, an increase of 5.6 per cent from February 2017. 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.
“The most active price point in the residential market continues to be the $300,000 to $449,999 range, accounting for 47 per cent of the market. While the most active price point in the condo market, between $150,000 and $249,999, accounts for 56 per cent of the market,” Shaw notes.
“The reality is that condo sales are driving the number of properties sold at the moment. Due to demand, the condo market is experiencing some price recovery. Units in the lower price points of the condo market are likely moving rapidly because of the limited supply in the rental market which is yet another factor at play. The lack of availability is essentially forcing renters into condo ownership,” he explains.
“Ottawa is beginning to experience similar indicators that have ultimately led to challenging real estate markets in our larger metropolitan cities. It starts with supply shortages which eventually lead to affordability issues. The city in particular needs to have an intelligent vision about how to support and stimulate all aspects of the market from new construction through to the rental market availability,” Shaw elaborates.
“With this being a civic election year, we look forward to talking with our council and mayoral candidates about what measures need to be taken now to support affordability, before we develop the supply challenges of Toronto or Vancouver,” he cautions.
In addition to residential and condominium sales, OREB Members assisted clients with renting 348 properties since the beginning of the year."
Thank you to Ottawa Real Estate Board for the article and can also be found on there website and the link below:
https://www.oreb.ca/newsroom/wanted-ottawa-homes-for-sale/
This is a great time to get your house on the market to sell in Ottawa as the inventory is still low again . 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 January check out the link below:
https://www.soldbysorin.com/node/933112
Your Ottawa Real Estate Professional
Sorin Vaduva
