Bidding wars continued for the month of August in the Ottawa market resulting in higher home prices.

Residential resale and condo prices continued to increase by 21 per cent and 24 per cent, respectively while in the rural areas of the city average sale prices for residential resale increased by 26 per cent from August 2019. 

There are many factors that contributed to the price increases and increased sales in Ottawa's residential resale market in August:

Increased Buyer Demand

• Due to low mortgage rates, stable employment in the federal public and high-tech sectors, revitalization and new infrastructure projects, competitive housing prices, the new Light-Rail Transit system, more out-of-town buyers and investors are coming to Ottawa from higher-priced housing markets to buy properties and land which have driven higher housing prices through multiple offers. 

Listings Shortage

• There were 1,387 residential resale properties for sale in the market which is a 49.8 per cent decrease from 2,764 listed properties in August 2019.

• In the condo market, there were only 505 condo units for sale in the market which is a 17.6 per cent decrease from 613 listed units in August 2019. 

Continued Record Sales In Residential Resale Market 

• The residential resale market generated 1,576 houses sold, an increase of 21.8 per cent, compared to 1,294 properties sold in the same month in 2019. 

• Residential resale homes were sold slightly shorter on average from 41 days to 24 days on the market, which is a 43 per cent decrease from the same month in 2019.

• Buyers bought residential homes in the $400,000-$800,000 price range, which accounted for 70.3 per cent of the residential resale home sales. 

• Buyers bought mostly: 
  • Two-storey homes - average sale price - $626,845 (previously $514,799 in August 2019) 
  • Bungalows (1-story) - average sale price - $560,847 (previously $444,320 in August 2019) 
     

• Most of the residential homes were bought in:
  • Downtown Ottawa - average sale price - $749,110 (previously $593,954 in August 2019)
  • Kanata/Nepean/Barrhaven - average sale price - $611,859 (previously $528,566 in August 2019)
  • Orleans - average sale price - $580,825 (previously $465,071 in August 2019)
  • Rockland/Casselman/Hawkesbury - average sale price - $431,085 (previously $334,555 in August 2019)

Stable Condo Sales 

• The condo market generated 441 units sold compared to 431 units sold in the same month in 2019, a 2.3 per cent increase. 

• Condo units continued to sell much quickly on average than residential resale properties from 43 days to 19 days on the market, which is a 55.1 per cent decrease from the same month in 2019. 

• Buyers bought most of the condo units priced in the $250,000 - $400,000 price range, accounting for 58.4 per cent of the condo market. 

• The most sold condo units were:  
  • Two-storey homes - average sale price - $363,594 (previously $270,264 in August 2019)
  • One-level homes - average sale price - $397,045 (previously $331,838 in August 2019)

• Most of the condos bought were in:
  • Downtown Ottawa - average sale price - $424,611 (previously $344,285 in August 2019) 
  • Kanata/Nepean/Barrhaven - average sale price - $337,575 (previously $261,935 in August 2019)
  • Orleans - average sale price - $334,941 (previously $249,922 in August 2019)

Average Sale Price Continue to Increase Throughout Ottawa

• Below is the list of neighbourhoods are best selling places where many buyers purchased properties in August. This is the result of specific important trends for potential buyers and sellers to be aware of: 
  • Manor Park-Cardinal Glen, Ottawa West, Westboro and Carp were the districts that received the most average sale price gains above 40%.
  • Orléans-Convent Glen; Orléans-Cumberland; Kanata; and Barrhaven were the most active neighbourhoods purchased properties and where properties in those neighbourhoods made significant average sale price gains from 20 per cent to 23.5 per cent compared to August 2019.
  • The greater Ottawa area and the Ottawa Valley are increasingly popular communities for buyers due to their relatively lower competitive house prices. Buyers are also moving to rural communities in exchange for downtown properties due to impact of COVID-19 which has made telecommuting a viable and economical option.
  • For luxury, high-end properties valued at an average price of $1 million, Manotick and the surrounding areas were attractive communities where buyers made their purchases.

Source: James Bagnall, @JamesBagnall1, September 3, 2020