Residential Home Prices Continue to Rise, While Home Inventory Continues To Decrease

Similar to March, April was another slow month for home sales in the Ottawa real estate market. This is attributed to several critical factors:

• The limited inventory of homes available for sale in the market which provided buyers with limited homebuying options to buy their dream home.
• Slow construction of newly-built homes entering the market.
• Sellers are unwilling to sell their homes due to limited buying opportunities in the market.
• The mortgage-stress test preventing buyers from being qualified for a mortgage.

As a result of these factors, home prices continue to rise which is making home affordability challenging for buyers.

According to the Ottawa Real Estate Board (OREB), the average selling price of a single-family home in Ottawa increased by 7.4 per cent in April at $488,729.

When it came to new residential listings, there was an 18 per cent decrease in April 2019 compared to the same month in 2018. For condos, it was even much worse. There were 40 per cent fewer condominiums listed for sale than in April 2018.

Lower Residential Home Sales

• In the residential home market, 1,594 homes were sold in April 2019, a decrease of 0.9 per cent compared to 1,608 properties sold in April 2018. 

• Buyers continued to buy residential homes in the $350,000 and $500,000 price range, which accounted for nearly 44 per cent of the residential market, and $500,000 and $750,000, which accounted for 28.5 per cent of residential home sales.

• Buyers bought mostly: 
  • Two-storey single-family homes - average price - $507,870 (previously $471,701 in April 2018)
  • Bungalows - average price - $455,993 (previously $427,277 in April 2018) 

• Most of the homes bought were in:
  • Rockland/Casselman/Hawkesbury - average price - $332,334 (previously $307,062 in April 2018)
  • Kanata/Nepean - average price - $491,501 (previously $456,215 in April 2018)
  • Downtown Ottawa - average price - $632,427 (previously $582,516 in April 2018)
  • Orleans - average price - $469,383 (previously $446,816 in April 2018)

Increased Condo Sales

• The condo market sold 438 condo units compared to 416 units sold in April 2018, a 5.3 per cent increase. 

• The majority of the sales occurred in the $225,000 and $350,000 price range, accounting for 46 per cent of the condo market. 

• The most sold units were: 
  • two-storey homes - average price - $264,623 (previously $240,350 in April 2018)
  • one-level homes - average price - $329,741 (previously $287,900 in April 2018)

• Most of the condos bought were in Downtown Ottawa at an average price of $353,867 (previously $309,349 in April 2018).