Slow Home Sales, Low Inventory and House Prices Continue to Rise in March
March was a slow month for home sales in the Ottawa real estate market. This is attributed to the limited inventory of homes available for sale in the market which provided buyers with limited choices to buy their dream home. As a result, the lack of home inventory increased home prices in March due to multiple offer situations and properties being sold over the listed price, which is making home affordability challenging for buyers.
According to the Ottawa Real Estate Board (OREB), when it came to new residential listings, there were 1,675 listings in the market in March 2019 compared to 2,070 listings in the same month in 2018, a 19.1 per cent decrease. The number of those new listings in 2019 was a 30 per cent decrease compared to March 2017. For condos, there were 535 listings in the market in March 2019 compared to 619 listings in the same month in 2018, a 13.6 per cent decrease.
The OREB calculated that the average sale price of a residential home was $480,143, an increase of 7.2 per cent over March 2018. The average sale price for a condominium was $290,181, an increase of 5.2 per cent from this month in 2018.
Lower Residential Home Sales
- In the residential home market, 1,136 homes were sold in March 2019, a decrease of 12.4 per cent compared to 1,297 properties sold in March 2018.
- When it came to days on the market, residential homes were sold on average of 34 days compared to 39 days in March 2018.
- Buyers continued to buy residential homes in the $300,000 and $450,000 price range, which accounted for nearly 43 per cent of the residential market, and $500,000 and $750,000, which accounted for 25 per cent of residential home sales.
- Buyers bought mostly:
- Two-storey single-family homes - average price - $492,985 (previously $470,772 in March 2018)
- Bungalows - average price - $464,996 (previously $419,389 in March 2018)
- Most of the homes bought were in:
- Rockland/Casselman/Hawkesbury - average price - $334,371 (previously $294,381 in March 2018)
- Kanata/Nepean - average price - $475,661 (previously $456,581 in March 2018)
- Downtown Ottawa - average price - $615,168 (previously $568,857 in March 2018)
- Orleans - average price - $458,280 (previously $426,702 in March 2018)
Increased Condo Sales
- The condo market sold 375 condo units compared to 357 units sold in March 2018, a 5 per cent increase.
- Condos were sold on average of 37 days from 58 days in March 2018.
- The majority of the sales occurred in the $225,000 and $350,000 price range, accounting for 49 per cent of the condo market.
- The most sold units were:
- two-storey homes - average price - $249,215 (previously $231,063 in March 2018)
- one-level homes - average price - $306,899 (previously $302,485 in March 2018)
- Most of the condos bought were in Downtown Ottawa at an average price of $317,419 (previously $319,541 in March 2018).
Increased Property Values For Single-Family Homes Occurred Throughout Ottawa
According to the OREB, most of the largest price increases, from March 2018 to March 2019, occurred in neighbourhoods located in the western, southern and eastern districts of the city. Interestingly, nine of the ten top neighbourhoods had homes that were sold for less than $560,000 on average while the same holds true for 5 out of the ten bottom neighbourhoods.
The Ottawa housing market has demonstrated an interesting trend in buyer behaviour. In March, most buyers bought resold homes in the rural communities of the city based on the relatively reasonable prices in those areas compared to Ottawa proper. This trend indicates that buyers are looking for affordable homes to buy.
Real Estate Tip:
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