The Booming Condo Market Boosts Record Home Sales in Ottawa

Compared to March and April, the Ottawa real estate market transformed in May where the condo market boosted record home resales. This trend indicates that buyers are continuing to look for affordable homes.

Here is what happened in the market:

 Record Condo Sales

• The condo market sold 554 condo units compared to 485 units sold in May 2018, a 14.2 per cent increase. 

• Condo units sold quickly in terms of average days in the market from 46 days to 31 days, which is a 33 per cent decrease.

• The majority of the sales occurred in the $225,000 and $350,000 price range, accounting for 57 per cent of the condo market. 

• The most sold units were: 
  • two-storey homes - average sale price - $269,915 (previously $229,663 in May 2018)
  • one-level homes - average sale price - $317,587 (previously $321,756 in May 2018)

• Most of the condos bought were in:
  • Downtown Ottawa - average sale price - $331,714 (previously $321,797 in May 2018)
  • Kanata/Nepean - average sale price - $262,164 (previously $241,435 in May 2018)
  • Orleans - average sale price - $252,720 (previously $227,034 in May 2018)

Stable Residential Home Sales

• In the residential home market, 1,869 homes were sold in May 2019, an increase of 4.6 per cent compared to 1,786 properties sold in May 2018. 

• Similar to condo units, residential homes sold quickly in terms of average days in the market from 34 days to 28 days.

• Buyers continued to buy residential homes in the $350,000 and $500,000 price range, which accounted for nearly 42 per cent of the residential market, and $500,000 and $750,000, which accounted for 28 per cent of residential home sales.

• Buyers bought mostly: 
  • Two-storey homes - average sale price - $514,927 (previously $476,111 in May 2018)
  • Three-storey homes - average sale price - $611,142 (previously $586,447 in May 2018)
  • Bungalows (1-story) - average sale price - $459,491 (previously $437,058 in May 2018)

• Most of the homes bought were in:
  • Downtown Ottawa - average sale price - $638,719 (previously $587,276 in May 2018)
  • Kanata/Nepean - average sale price - $497,583 (previously $459,503 in May 2018)
  • Orleans - average sale price - $474,043 (previously $437,676 in May 2018)
  • Rockland/Casselman/Hawkesbury - average sale price - $332,058 (previously $325,263 in May 2018)
  • Stittsville - average sale price - $545,532 (previously $486,786 in May 2018)

Comparing Ottawa to Other Canadian Housing Markets

The Ottawa housing market has been strong and competitive with other major Canadian markets. According to James Bagnall of the Ottawa Citizen, from April 2017 to the present time (see graphs below), Ottawa's housing prices have increased by 17.5% while homeowners gained significant equity in the growing market values of their homes. This is attributed to Ottawa stable and growing economy which has generated:

• highly-paid employment job;
• low unemployment;
• increased residential, commercial, transportation and infrastructure development projects, and
• population growth due to increased interprovincial migration and immigration. 

Furthermore, the economic recession in Western Canada was another important factor in making Ottawa competitive.