Low Sales In Ottawa's Residential Resale Market During COVID-19 Crisis

As expected, the Ottawa residential resale market experienced the lowest number of sales so far this year due to the impact of the COVID-19 pandemic despite the steady increase in the average sale price, which went up 6.8% at $559,739 from 467,382 during the same month in 2019.

Here is what happened in April:

Declining Residential Resale Housing Sales

• During the COVID-19 pandemic, the residential resale market generated 700 houses sold, a decrease of 56 per cent, compared to 1,591 properties sold in the same month in 2019. 

• Despite the significant decrease in housing sales, residential resale homes were sold significantly quickly on average from 44 days to 28 days on the market, which is a 35.6 per cent decrease from the same month in 2019.

• Buyers bought residential homes in the $400,000-$450,000, $450,000-$500,000, $500,000-$550,000 and $550,000-$600,000 price ranges, which accounted for 56 per cent of the residential resale home sales. 

• Buyers bought mostly: 
  • Two-storey homes - average sale price - $547,276 (previously $507,610 in April 2019) 
  • Bungalows (1-story) - average sale price - $464,361 (previously $455,993 in April 2019) 
     

• Most of the residential homes were bought in:
  • Downtown Ottawa - average sale price - $634,881 (previously $632,427 in April 2019)
  • Kanata/Nepean - average sale price - $534,118 (previously $491,923 in April 2019)
  • Orleans - average sale price - $524,872 (previously $466,559 in April 2019)

New Residential Resale Listings Declining

• The number of new residential resale listings in the market during the pandemic decreased significantly to 920 properties from 2,233 new properties listed in April 2019, a 58.8 per cent decrease.   

Declining Condo Sales

• The condo market generated 213 units sold compared to 434 units sold in the same month in 2019, a 50.9 per cent decrease. 

• Similar to the residential resale market, condo units continued to sell much quickly on average from 52 days to 20 days on the market, which is a 61.4 per cent decrease from the same month in 2019. 

• Buyers bought most of the condo units priced in the $200,000 - $250,000, $250,000 - $300,000 and $300,000 - $400,000 price ranges, accounting for 78.4 per cent of the condo market. 

• The most sold condo units were:  
  • Two-storey homes - average sale price - $305,536 (previously $265,972 in April 2019)
  • One-level homes - average sale price - $359,849 (previously $329,794 in April 2019)

• Most of the condos bought were in:
  • Downtown Ottawa - average sale price - $352,925 (previously $354,502 in April 2019) 

New Condo Listings Declining

• The number of new condo listings in the market decreased to 281 properties from 519 new properties listed in April 2019, a 45.9 per cent decrease. 

Impacts of COVID-19 on Ottawa's Housing Market

The COVID-19 pandemic has caused some significant impacts to Ottawa's housing market overtime in the following areas:

New Listings

To date, after the Government of Ontario's state of emergency announcement, new condo and residential listings continue to be significantly reduced due to homeowners being reluctant to put their home on the market as there is a  shortage of properties available for sale in the market, thus reducing their buying options. Also, properties listed in the market are involved in multiple offer situations leading to quick closings and significant sale prices which is making it unaffordable for some eager buyers, particularly first-time homebuyers.

Sold Properties

With significant reductions in the supply of condo and residential properties available in the market for sale has generated significantly lower sales compared to 2019. 

Average Condo Sale Prices

Average condo sale prices started to stabilize after the COVID-19 pandemic lockdown restrictions for a few weeks and now are starting to increase steadily. The lockdown restrictions have forced eager buyers to put their buying plans on hold until the pandemic crisis ends. As such, this is a good sign for active condo buyers to start taking advantage of this opportunity where they can have bargaining leverage to negotiate with motivated sellers to buy their condos at lower and affordable prices.   

Average Residential Home Sale Prices

In comparison to 2019, current average residential home sale prices have stabilized after the COVID-19 pandemic lockdown restrictions. Similar to the condo market, the lockdown restrictions have forced eager buyers to put their buying plans on hold until the pandemic crisis ends. As such, residential home buyers should take advantage of this opportunity where they can have bargaining leverage to negotiate with motivated sellers to buy their residential homes at lower and affordable prices.