Ottawa Resale Housing Market Rebounds in June

Despite having continued low inventory of houses for sale in the market, along with a 15 per cent increase in average housing prices, the Ottawa resale housing market rebounded well during the pandemic.

The average sale price in Ottawa's residential resale went up 14.8% at $575,623 from $501,232 during the same month in 2019. Also, the average sale price in the condo market went up 17.1% at $360,992 from $308,400 during the same month in 2019.

Here is how the market performed in June:

Residential Resale Housing Sales Increased Slightly

• The residential resale market generated 1,622 houses sold, an increase of 0.9 per cent, compared to 1,607 properties sold in the same month in 2019. 

• Surprisingly, residential resale homes were sold slightly shorter on average from 35 days to 31 days on the market, which is a 11.1 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 48 per cent of the residential resale home sales. 

• Buyers bought mostly: 
  • Two-storey homes - average sale price - $596,752 (previously $532,023 in June 2019) 
  • Bungalows (1-story) - average sale price - $541,018 (previously $448,193 in June 2019) 
     

• Most of the residential homes were bought in:
  • Downtown Ottawa - average sale price - $736,764 (previously $645,881 in June 2019)
  • Kanata/Nepean/Barrhaven - average sale price - $586,246 (previously $509,184 in June 2019)
  • Orleans - average sale price - $562,007 (previously $464,280 in June 2019)
  • Rockland/Casselman/Hawkesbury - average sale price - $409,835 (previously $340,311 in June 2019)

Declined Residential Resale Listings

• The number of residential resale listings in the market decreased significantly to 1,462 properties from 3,041 properties listed in June 2019, a 51.9 per cent decrease. This is the result of residential resale listings being sold immediately once they hit the market. 

Condo Sales Continued To Decline

• The condo market generated 430 units sold compared to 489 units sold in the same month in 2019, a 12.1 per cent decrease. 

• Condo units continued to sell much quickly on average than residential resale properties from 43 days to 23 days on the market, which is a 45 per cent decrease from the same month in 2019. This trend may indicate that the condo market is the preferred choice for buyers because of its better affordability than residential resale properties, especially for first-time homebuyers. 

• Buyers bought most of the condo units priced in the $250,000 - $300,000; $300,000 - $400,000 and $400,000 - $500,000 price ranges, accounting for 75.3 per cent of the condo market. 

• The most sold condo units were:  
  • Two-storey homes - average sale price - $340,362 (previously $273,237 in June 2019)
  • One-level homes - average sale price - $376,076 (previously $336,808 in June 2019)

• Most of the condos bought were in:
  • Downtown Ottawa - average sale price - $396,423 (previously $336,352 in June 2019) 

Declined Condo Listings

• The number of condo listings in the market decreased to 440 properties from 755 properties listed in June 2019, a 41.7 per cent decrease. This is the result of new condo listings being sold immediately once they hit the market. 

East and West Ottawa Dominate the Housing Sales Market

• Based on the number of properties sold and average sale prices, below is the list of neighbourhoods are best selling places where many buyers purchased properties. This trend is giving sellers the advantages of selling their homes at above-market sale prices and owning their homes that have significantly increased in market value. 

• Barrhaven, Kanata and Orleans were the most active neighbourhoods. 

 Source: James Bagnall, Ottawa Citizen, July 6, 2020, @JamesBagnall1