The Hot Ottawa Real Estate Market Begins to Cool Down

The hot Ottawa real estate market started to cool down in August due to low residential home sales, however, the condo market continued to be strong. Here is how the Ottawa real estate market performed in August:

Low Residential Home Sales 

• The residential market had a decrease in sales with 1,188 homes sold in August compared to 1,238 homes sold in July 2018. 

• The majority of the residential home sales were in the $300,000 and $450,000 price range, accounting for 45 per cent of the residential market, and $500,000 and $750,000, which accounted for 22 per cent of residential home sales.

• Buyers bought mostly:
  • Two-storey single-family homes - average price - $454,792 (previously $434,385 in August 2017)
  • Bungalows - average price - $403,125 (previously $394,093 in August 2017) 

• Most of the homes bought were in:
  • Casselman/Hawkesbury/Rockland - average price - $290,297 (previously $317,556 in August 2017)
  • Kanata/Nepean - average price - $444,048 (previously $434,049 in August 2017)
  • Central Ottawa - average price - $543,607 (previously $520,148 in August 2017)
  • Orleans - average price - $422,142 (previously $418,404 in August 2017)

Record Number of Condo Units Sold

• The condo market sold 398 condo units compared to 359 units sold in August 2017, a 10.9 per cent increase.

• The majority of the sales occurred in the $175,000 and $275,000 price range, accounting for 56 per cent of the condo market. 

• The most sold units were: 
  • two-storey homes - average price - $240,918 (previously $231,129 in August 2017)
  • one-level homes - average price - $302,755 (previously $301,162 in August 2017)

• Most of the condos bought were in:
  • Central Ottawa - average price - $309,603 (previously $303,834 in August 2017)
  • Kanata/Nepean - average price - $239,412 (previously $228,549 in August 2017)
  • Orleans - average price - $230,543 (previously $270,768 in August 2017)

•  The condo market maintained its steady sales growth due to its affordability and the limited availability of rental apartments. 

Increased Property Values For Single-Family Homes Throughout Ottawa 

• The trend of price increases of single-family homes occurred in the eastern, western and southern sections of the city where homeowners received significant financial gains in increased property values of their homes over a one-year period (from August 2017 to August 2018). This trend provides an indication of which particular areas of the city buyer demand for single-family homes is occurring.  The graph shows which were the top neighbourhoods in Ottawa where buyers bought single-family homes:

Helpful Tips: 

In my experience and speaking with other realtors, when it comes to attracting buyers to buying homes, I have learned that today's homebuyers are attracted to specific top features in a home that they want and are willing to pay more money for. The top features are:

• Open concept floor plans - This feature provides a homeowner with the ability to interact with their guests even if they are in a different room. This home feature is popular with families with young children as an open concept allows the parents the ability to watch their children even if they are not in the same room or area of the home.

• Updated kitchen - Many home buyers today are not interested in remodelling a kitchen themselves or don’t have the money to pay for it. I have seen too many times homeowners making the mistake of spending tremendous amounts of money on kitchen renovations which, in turn, did not attract today's homebuyers. There are many ways to update your kitchen at a low cost without breaking the bank that will attract today's homebuyers, such as a fresh coat of paint, re-staining or refinishing kitchen cabinetry, new kitchen cabinet hardware, new light fixtures, new plumbing fixtures and a new sink.

• Updated bathroom - Many home buyers will not choose a home that has a bathroom that is outdated and dirty. Here are some low-cost bathroom upgrades that would appeal to today's homebuyers: new vanity, new medicine cabinet, new plumbing fixtures, new bathtub/shower surround, updated light fixtures and clean and organized linen closet(s). 

• Outdoor space - Many of today's homebuyers prefer to choose a home with specific outdoor features, such as landscaping, pools, fire pits, balcony, gardens and outdoor kitchens.

• Home technologies - Many of today’s home buyers are very “tech-savvy” especially millennial home buyers who are 28 years and under.  Home technologies that can help increase the appeal of a home are: programmable thermostats,  which can be controlled by a smartphone, tablet, or other mobile device; whole home speaker systems; key-less locks that can be accessed via Bluetooth, and timed irrigation systems.

• Energy-efficient appliances, furnace, air conditioning and windows - These features that appeal to today's homebuyers who are not looking for a home that is environmentally-friendly and safe, but a home that will help save money on their utility bills.