Are More Properties in Ottawa Being Bought With Lower Interest Rates?
Based on the table data below on Ottawa’s residential and condo sale prices and the number of sales for July and August 2024, here are some key conclusions and implications for both buyers and sellers:
Residential Properties
1. Price Trends:
1 1/2-Storey Detached Homes: The median sale price increased from $385,000 in July to $405,000 in August 2024. This 5.2% increase suggests demand for this property type is strong, making it a good time for sellers to capitalize on rising prices.
2-Storey Detached Homes: The median sale price dropped slightly from $780,000 in July to $760,250 in August, a 2.5% decline. Buyers might have more negotiation power in this category, while sellers may need to be more competitive in their pricing.
Bungalows: Prices decreased marginally from $580,000 to $575,000, showing stability with only a 0.86% drop. This small change suggests this market segment remains stable for both buyers and sellers.
Semi-Detached Homes: A significant drop in the median sale price from $581,500 in July to $541,500 in August (6.9% decrease). This is advantageous for buyers looking for a more affordable entry into semi-detached homes, but sellers may need to adjust expectations or offer incentives to sell.
2-Storey Townhomes: Prices decreased by 2.05%, from $612,500 to $599,945. This could attract buyers looking for more affordable family homes while pushing sellers to ensure their properties stand out.
2. Sales Volume:
Sales of 1 1/2-Storey Detached Homes and 2-Storey Detached Homes increased, indicating strong buyer interest, which may push prices up further. Sellers might benefit from the rising demand.
The number of sales for other property types, including Bungalows, Semi-Detached Homes, and 2-Storey Townhomes, dropped slightly. This could indicate reduced demand or market saturation, making it more challenging for sellers in these categories.
Condo Properties
1. Price Trends:
Apartment Condos experienced a slight price decrease, from $394,250 to $385,000 (2.3% decline), signaling potential affordability for buyers, but a more competitive market for sellers.
2-Storey Townhome Condos saw a price drop from $430,000 to $406,000 (5.6% decline). This decrease may make these properties more appealing to buyers, while sellers might face pressure to lower prices further or make quick sales.
Stacked Townhomes saw a modest decline in median price from $394,500 to $391,000, a 0.89% drop. This indicates a relatively stable condo market in this segment, with no drastic changes favoring either buyers or sellers.
2. Sales Volume:
There were fewer sales across most condo types from July to August, especially for Apartment Condos (from 206 to 168 sales) and 2-Storey Townhome Condos (from 67 to 60 sales). Fewer sales suggest a cooling in buyer interest, which could give buyers more negotiation power, while sellers may need to price competitively or offer additional incentives.
Implications for Buyers:
Opportunity for Negotiation: The overall decline in median prices for most property types suggests that buyers may find themselves in a more favorable position, particularly in semi-detached homes and condo townhomes.
More Affordable Market Segments: For those looking for lower-priced options, Apartment Condos and 2-Storey Townhome Condos appear to offer better value, as prices have dropped.
Implications for Sellers:
Competitive Pricing Necessary: Given the declining prices in many categories, sellers may need to price competitively or offer additional incentives to attract buyers, particularly in the semi-detached and 2-storey townhome segments.
Strong Demand in Specific Markets: Sellers of 1 1/2-storey detached homes and 2-storey detached homes might benefit from increased buyer interest and should consider taking advantage of this market strength by listing their properties soon.
In summary, the Ottawa real estate market for July and August 2024 shows a mixed landscape, with some segments like 1 1/2-storey detached homes showing price gains, while most others have experienced slight declines. Buyers may find this an opportune moment to enter the market, particularly in the condo sector, while sellers in less active segments may need to be strategic with their pricing.
RESIDENTIAL*
| Property Type | Median Sale Price: July 2024 | Median Sale Price: August 2024 |
Number of Sales: July 2024 |
Number of Sales: August 2024 |
| 1 1/2-Storey Detached | $385,000 | $405,000 | 69 | 74 |
| 2-Storey Detached | $780,000 | $760,250 | 414 | 408 |
| Bungalow | $580,000 | $575,000 | 388 | 384 |
| Semi-Detached | $581,500 | $541,500 | 120 | 92 |
| 2-Storey Townhome | $612,500 | $599,945 | 230 | 192 |
CONDO*
| Property Type | Median Sale Price: July 2024 | Median Sale Price: August 2024 | Number of Sales: July 2024 | Number of Sales: July 2024 |
| Apartment | $394,250 | $385,000 | 206 | 168 |
| 2-Storey Townhome | $430,000 | $406,000 | 67 | 60 |
| Stacked Townhome | $394,500 | $391,000 | 48 | 56 |
*Source: Ottawa Real Estate Board
