The Ottawa Real Estate Market Continues to Sizzle in the Summer

The record condo market in July 2018 fuelled the Ottawa real estate market into a sizzling frenzy outgrowing the residential market in home sales and buyer demand. There were important factors that fuelled the record sales growth of the condo market:

Record Number of Condo Units Sold

• The condo market sold 376 condo units compared to 329 units sold in July 2017, a 14.3 per cent increase.

• The majority of the sales occurred in the $175,000 and $275,000 price range, accounting for 49 per cent of the condo market. 

• The most sold units were: 
  • two-storey homes - average price - $238,679 (previously $216,518 in July 2017)
  • one-level homes - average price - $307,626 (previously $298,505 in July 2017)

• Most of the condos bought were in:
  • Central Ottawa - average price - $325,651 (previously $306,831 in July 2017)
  • Kanata/Nepean - average price - $243,183 (previously $210,092 in July 2017)
  • Orleans - average price - $214,594 (previously $215,624 in July 2017)

 Residential Home Sales Pickup in July

• The residential market had increase sales with 1,238 residential homes sold in July 2018 compared to 1,195 homes sold in July 2017, a 3.6 per cent decrease.

• 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 20 per cent of residential home sales.

• Buyers bought mostly:
  • Two-storey single-family homes - average price - $473,322 (previously $440,430 in July 2017)
  • Bungalows - average price - $388,309 (previously $396,715 in July 2017)
  • Hi Ranch - average price - $351,720 (previously $339,363 in July 2017)
  • Split-Level - average price - $438,349 (previously $403,338 in July 2017)

• Most of the homes bought were in:
  • Casselman/Hawkesbury/Rockland - average price - $317,640 (previously $296,391 in July 2017)
  • Kanata/Nepean - average price - $444,645 (previously $425,067 in July 2017)
  • Central Ottawa - average price - $594,526 (previously $530,580 in July 2017)
  • Orleans - average price - $418,058 (previously $398,938 in July 2017)

Increased Property Values For Single-Family Homes Throughout Ottawa 

• The change in the trend of price increases of single-family homes shifted to the 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 July 2017 to July 2018). The top neighbourhoods were:

1. Hintonburg/West Centretown - 12.1 per cent (average price: $541,800)
2. Barrhaven - 10.7 per cent (average price: $399,500)
3. Manotick/Kars/Rideau Township - 10.4 per cent (average price: $550,800)
4. Blossom Park/Airport - 10 per cent (average price: $455,100)
5. Overbrook/Castleheights - 10 per cent (average price: $429,100)
6. Elmvale Acres - 9.8 per cent (average price: $419,700)
7. Kanata - 9.6 per cent (average price: $443,600)
8. Stittsville/Munster/Richmond - 9.4 per cent (average price: $479,200)
9. Qualicum/Bruce Farm - 9.4 per cent (average price: $583,000)
10. Bells Corners/South of Fallowfield - 9.3 per cent (average price: $356,400)

• The contributing factors to the increase in the property values in the west end, according to the Ottawa Real Estate Board, was increased availability of schools, recreational facilities and shopping compared to downtown.

Tip: 

When you find your dream home that requires renovations, it is important to bring along a trusted and experienced general contractor to see the property in person before you make an offer on the property. A general contractor needs to know the technical aspects of residential property construction for you to feel confident about their expertise and advice. Before deciding on choosing a general contractor that you trust, you need to ask them about their expertise about the types of construction materials they use to renovate properties; what are their specialities in renovating residential properties; their years of experience; past renovation projects they completed; how they manage their renovation projects and their references of past clients they have helped. 

Having a general contractor come with you to view a property is helpful where they can provide you with valuable feedback on which areas of the property need to be renovated, the amount of renovations that need to be done, and, more importantly, the estimated costs of completing the renovations. Receiving this important information from a general contractor helps you prepare for the right budget that makes you comfortable financially where you can save money and avoid problems with your dream home in the future. Furthermore, obtaining a general contractor's estimated renovation costs can provide you with the opportunity to negotiate with the Seller to accept your offer to purchase your dream home at a reduced price to save money.