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December Down but 2018 Even Stronger than 2017 in Ottawa

December Down but 2018 Even Stronger than 2017 in Ottawa
2 min. read

While it is true that December saw a year-over-year decline in home sales in the Ottawa real estate market, there are certainly signs of strength in the region. This year’s sales surpassed 2017, with the condo market doing especially well. This marks the second year in a row that the city has seen significant annual growth in the market.

Image: James Jiraphanumes/Shutterstock.com

There were 663 homes sold in Ottawa this December. In 2017, there were 765 homes sold in that month, meaning that there was a year-over-year decline of 13.3%. However, it is important to note that this month in isolation doesn’t tell the larger story of Ottawa’s market this year. When the entire year is compared to 2017, sales actually increased by 2.4%. There were 17,476 homes sold in the city this year, with 4,058 of those being condos. That was a 13.1% jump in condo sales for the Ottawa market between 2017 and 2018.

Inventory in Ottawa Getting Tight

While the real estate market has been going strong for several years in Ottawa now, the amount of available inventory is starting to get restricted. This is being reflected not just by sales, but also by new listings coming on the market. There were just over 600 homes listed for sale in Ottawa this December, which was the lowest level in ten years for the month.

Active listings also hit a ten-year low for the month of December. When coupled with the months of inventory remaining, this paints a picture of a market that is getting more and more competitive. The months of inventory available on the market also hit a ten-year low, with fewer than four months of inventory left.

Prices Growing, Especially for Condos

There was a 4.7% growth in prices this December compared to 2017. The average price of a home sold this December was $453,011. Condo prices took a significantly larger boost than that, growing 9% year-over-year. The average price of a condo sold in the city was $278,295. Prices also increased when looking at the long-term averages of 2018 compared to 2017. The average price of a home sold in 2018 was $446,661, 5.1% higher than it was the year before.

The Ottawa market is extremely robust at present. It will take some time to see if the slight downturn in December was simply an anomaly, or part of a larger pattern that signals a shift away from the rampant growth the city has seen over the last few years. In the meantime, though, prices are likely to continue to climb slowly as long as inventory remains tight in the city.

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