Ottawa Real Estate Board Stats for June 2018- "Condo Sales Keep Market from Over Heating"

Ottawa Real Estate Board Stats for June 2018- "Condo Sales Keep Market from Over Heating" 

As Ottawa now starts summer vacations we always see a little less activity in the market. Let's take a look at the stats for June 2018 for Ottawa provide by the Ottawa Real Estate Board

The market has now provided a abit more inventory to the market with people trying to take advantage of strong prices in this sellers market so we saw alot of new listings come to the market which was great for buyers out there but they didn't last long. There is alot of people who are also still not listing there home as they are afraid of not being able to find a new home or want to see how the market plays out with the new government, trade war talks, talk of raising interest rate hikes possibly coming but soon I assume we are going to see even more options come to the market in the next 2 or 3 months and we are bracing for a strong Fall market. There is a few different options to get through selling and buying a new home at the same time that protect you to make sure you are not stuck such as; first refusal offers, conditions, long closing and short term rentals but please reachout to me about any questions and strategies on how to do it and would be happy to help or answer any questions.

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 .

Ottawa is still growing very rapidly and with alot of major developments throughout the city and now with Amazon announcement to build a supply center here hiring upto 1500 people, this is a great time to be in Ottawa and grow with the market. I do expect that we will see a interest hikes coming in the next month or two and that we will have a very busy Fall and I do think alot of inventory will come on the market at that time and we will see some more great options for buyers.

Some Key points to take from the News Release Below and Ottawa Real Estate Market in June 2018:

• 2,070 residential properties in June, compared with 2,163 in June 2017, a decrease of 4.3 per cent
• Average sale price of a residential-class property sold in June in the Ottawa area was $449,200, an increase of 3.4 per cent over June 2017
• The average sale price for a condominium-class property was $293,303, an increase of 1.2 per cent from June 2017
• Year to date, residential properties have seen a 5.2 per cent increase in average price with a 1.1 per cent price increase for condominiums.
• June’s sales included 455 in the condominium property class, an increase of 11.5 per cent from June 2017
• The DAYS ON MARKET for Condos has decreased from 71 days to 52 days, a 27 per cent decrease from June 2017

Check out full article from Ottawa Real Estate Board Below 

Condo Sales Keep Market from Over Heating

July 5, 2018

"Members of the Ottawa Real Estate Board sold 2,070 residential properties in June through the Board’s Multiple Listing Service® System, compared with 2,163 in June 2017, a decrease of 4.3 per cent. The five-year average for June sales is 1,914. June’s sales included 455 in the condominium property class, an increase of 11.5 per cent from June 2017 and 1,615 in the residential property class, a decrease of 8 per cent from a year ago.

“The first half of 2018 has performed very well with the number of year to date residential sales almost identical to this time last year,” states Ralph Shaw, Ottawa Real Estate Board President. “Condo unit sales have led the way, increasing by 16.8 per cent over the same period.”

“The robust condo numbers are likely fueled by lack of inventory, particularly in the lower price points of the single-family resale market. For example, in the first half of the year there has been a decrease of 37 per cent in the number of single-family units sold at the $250-275K price point and a 41 per cent decrease for the $275-300K price range, whereas there is a corresponding increase in condo sales of 49 per cent and 22 per cent respectively for those same price points,” Shaw points out.

“This suggests that at the lower end of the single-family resale market, buyers are turning towards condominium units as a way of achieving ownership at a price they can afford. The oversupply in our condo market that once was an issue is now helping to ease our overall inventory shortage.”

“Further, with construction costs up (concrete is one example) as well as increasing development fees, and skilled labour at a premium which is extending build timelines, the price of purchasing a new build is simply out of reach for many entry-level buyers,” he adds. “The options then become to move further outside the urban boundary to less expensive markets in surrounding communities.”

The year to date average Days on Market (DOM) for residential homes has decreased 18 per cent from 46 days in 2017 to 37 days currently. For condos, the DOM has decreased from 71 days to 52 days, a 27 per cent decrease from June 2017.

“The decrease in DOMs indicates that inventory is turning over much more quickly, likely due to the lack of available inventory in certain areas of Ottawa. To increase the number of listings available, we need the right product availability to entice sellers to give up their homes, particularly boomers. Many have indicated they would happily list their homes if we could offer them a property that fits into the lifestyle that they want. The downtown apartment condo is not at the top of their list,” remarks Shaw.

The average sale price of a residential-class property sold in June in the Ottawa area was $449,200, an increase of 3.4 per cent over June 2017. The average sale price for a condominium-class property was $293,303, an increase of 1.2 per cent from June 2017. Year to date, residential properties have seen a 5.2 per cent increase in average price with a 1.1 per cent price increase for condominiums.*

“Ottawa’s real estate market continues to move forward at a reasonable pace. Undoubtedly, inventory remains low, but our property prices continue to be stable and affordable. We are very fortunate not to be experiencing the volatility of other markets in our country,” Shaw acknowledges.

In addition to residential and condominium sales, OREB Members assisted clients with renting 1,320 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/condo-sales-keep-market-from-over-heating/

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 May check out the link below:

https://www.oreb.ca/newsroom/ottawas-spring-market-churning-along/

Your Ottawa Real Estate Professional

Sorin Vaduva