The Ottawa Resale Market Makes A Strong Comeback In February

The Ottawa residential resale market rebounded with strong gains in February despite a soaring 21.1 per cent increase in the average sale price of residential homes at $563,694 compared to $465,314 during the same month in 2019.

Here is how the market performed in February:

 Reduced Residential Listings Available In the Market

• Despite the resale market's strong comeback, the number of residential listings in the market was significantly reduced to 1,522 properties from 2,405 properties listed in February 2019, 36.7 per cent decrease. This trend continues to shows the reluctance among sellers to take advantage of selling their homes for the highest dollar possible due to the limited availability of homes for sale in the market for them to buy and move in. Furthermore, reduced listings in the market are contributing the multiple offers on existing listings in the market through the city.  

Increased Residential Resale Home Sales

• Due to significant reductions in residential listings, 835 homes were sold in February 2019, an increase of 10.9 per cent, compared to 753 properties sold in February 2019. 

• Despite the reduced listings, residential homes sold quickly on average from 53 days to 41 days on the market, which is about a 23.3 per cent decrease.

• Buyers bought residential homes in the $400,000 and $550,000 price range, which accounted for 39 per cent of the residential home sales. 

• Buyers bought mostly: 
  • Two-storey homes - average sale price - $584,993 (previously $487,575 in February 2019) 
  • Bungalows (1-story) - average sale price - $510,503 (previously $433,665 in February 2019) 
     

• Most of the residential homes were bought in:
  • Downtown Ottawa - average sale price - $703,167 (previously $571,267 in February 2019)
  • Kanata/Nepean - average sale price - $571,496 (previously $484,240 in February 2019)
  • Orleans - average sale price - $550,028 (previously $458,281 in February 2019)

Record Condo Sales

• Due to significant reductions in condo listings, the condo market generated record sales with 306 condo units sold compared to 249 units sold in February 2019, a 22.9 per cent increase. 

• Condo units sold more quickly than residential homes on average from 61 days to 25 days on the market, which is a 58.2 per cent decrease. This shows continuous buyer demand in condos based on their price affordability compared to high prices of residential homes. 

• Buyers bought most of the condo units priced in the $250,000 - $400,000 price range, accounting for 55 per cent of the condo market. 

• The most sold condo units were:  
  • Two-storey homes - average sale price - $321,435 (previously $255,218 in February 2019)
  • One-level homes - average sale price - $366,334 (previously $309,274 in February 2019)

• Most of the condos bought were in:
  • Downtown Ottawa - average sale price - $382,796 (previously $323,470 in February 2019) 

Busiest Districts Generate Significant Average Price Increases For Single-Family Homes

There were several districts throughout the city generated plenty of activity in terms of most properties sold that generated surging average price increases for single-family homes. The top districts that generated significant average price and units sold activity were:  Blackburn Hamlet ($582,900); Hintonburg-West Centretown ($834,600); Bay-Rocky Point-Bayshore ($722,600); Carp and surrounding areas ($632,400) and Greely ($662,900). These districts demonstrate the pattern of preferences among buyers looking for well-established communities, especially the suburban areas of the city. 

Source: James Bagnall, Ottawa Citizen, @JamesBagnall1, March 4, 2019.