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More Growth in Ottawa Real Estate Market This Fall

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More Growth in Ottawa Real Estate Market This Fall
3 min. read

Ottawa has not traditionally been lumped in with Toronto and Vancouver as one of the hottest real estate markets in the country. Despite being the nation’s capital, the city hasn’t seemed to ride the same wave of rampant real estate growth that we’ve seen elsewhere in the country. However, more recently that trend seems to be shifting, with the Ottawa real estate market starting to break records on a regular basis.

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Photo Credit: By RobCA via Wikipedia

In October 2016 there were 1,214 homes sold in the Ottawa area. Over that same month a year before, home sales totalled 1,159. The 4.7% growth beats out the five-year margin of 1,130 sales by over 80 sales.

Condo Market is Where the Heat Is

The true growth in the Ottawa real estate market is revealed when you start to break the broader numbers down into smaller categories. For instance, the sales of detached homes in the city weren’t actually up on a year-over-year basis. The entire amount of growth was made up for by the leaps and bounds taken in the condo market. Compared to last year, 27.2% more condos were sold in Ottawa this October.

The price of condos staying low relative to other properties in the city may help explain the popularity of that type of home at the moment. Overall, the average home price in the city rose 3.3% compared to the same time last year, with the current average landing at $392,579. However, condos are available at a much more reasonable price point, with an average sale price of $251,465. This means that condo prices rose only .01% on a year-over-year basis. So with increased interest as indicated by the sales numbers, and stable prices as indicated here, it is no surprise that the condo market in Ottawa is breaking records handily.

Listings Dipping in Ottawa

A very tight belt seems to have tightened around the flow of inventory in Ottawa lately, with October really feeling the effects this year. While the total month’s inventory in October 2015 was nearly record breaking, this year’s total inventory available at the end of the month dipped below the ten-year average to be the lowest end-of-October number of listings since 2010.

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Ottawa is certainly a market that people want to keep their eyes on moving forward. While it once marched to its own beat, a condo market that is getting more competitive as sales are driven upward and supplies tighten is certainly reminiscent of the patterns we’ve observed over the years in Canada’s other major cities. For now though, with average price increases kept below 5% on a year-over-year basis, buyers shouldn’t have anything to worry about as the market seems to be growing at a normal, rather than a breakneck pace.

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