As with most cities, spring is typically a highly active time in the Ottawa real estate market. This year has upheld that expectation much better than the last several years have, with sales levels reaching highs that haven’t been seen since 2010. The overall sense is that real estate in Ottawa is tilted slightly in favor of the seller side in the market at the moment, with increasing sales and a drop-off in active listings causing a few challenges for buyers.
The month of April saw 1,711 homes sold in Ottawa. This 4.9% year-over-year increase was just below the record of seven years ago, while also being comfortably over the five-year average of 1,613. Although not representing astronomical sales growth, the increased demand has been enough to pressure prices upwards when combined with other factors at play in the Ottawa Market.
Listings Dropping Much Faster Than Sales Growing
If you were to point to any single factor in Ottawa that is causing the increase in prices, the available listings in the area seem like a much more likely candidate than the sales activity. While sales activity growth was only a modest single digit number, the quantity of properties available for sale in Ottawa dropped at a much more precipitous rate. The total number of homes available for purchase at the end of April was only 6,396, 21.3% fewer than were available at the same time last year. The drop-off in listings was steeper for detached homes than condos, with availability dropping by 22.7% in detached homes compared to only 17.3% for condos.
Prices in Ottawa Growing Predictably
It should come as no surprise at this point that prices climbed somewhat in Ottawa during the month of April. The average price of a detached home sold in the city for the month was $435,883. This represents a 7.9% increase, year over year, in the price of detached properties in the city. Condo prices also climbed, but by a much more modest margin of 2.9% to a new average sale price of $268,553.
Overall, Ottawa seems to be yet another part of the Ontario real estate market where activity is heating up. The average days a detached property took to sell dropped 23.4% this April compared to last, with detached homes averaging only 62 days on the market at the moment. As we move into summer we should be able to tell very quickly whether this was a spring bounce-back, or something larger and indicative of a long term shift in a seller’s market in Ottawa.
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