Still going strong, Ottawa’s real estate market continues to be a hot buyer’s market with lower and lower inventory up for grabs. This is especially evident in the new home sector.
According to the latest report from industry analyst PMA Brethour Realty Group, new home sales shot through the roof for the month of September.
There were 501 new home sales for the month, up a huge 63 per cent over September 2015, when 306 new homes sold, and up 47 per cent from the previous month (340).
“Crazy numbers,” acknowledges PMA Ottawa president Cheryl Rice, who did expect a strong month due to project launches and new releases. “What surprised us was how high the numbers were.”
September also topped the busiest month this spring – April, with 477 – even though spring traditionally sees higher sales.
The busy month also means year-to-date sales were up 18.5 per cent over the previous year (3,510 versus 2,963). “September sales exceeded our 10-year average and year-to-date sales have not been this good since 2011, both indicating that consumer demand has recovered nicely and is growing stronger,” she says.
Much of the bump was due to new openings at Mattamy’s Abbottsville Crossing and Minto’s Potter’s Key. Mattamy doubled and Minto almost tripled their number of sales from August to September, Rice says.
While the resale numbers weren’t quite as dramatic, the Ottawa Real Estate Board says they still set a record for September sales.
The board reports 1,371 sales through the Multiple Listing Service, for a jump of 10.5 per cent over the 1,241 sold in September 2015. That’s also 200 more sales than the five-year average for September and the third time this year that the board has set a monthly record (June and August were the other months).
September sales included 269 condos, averaging $383,793 (a decrease of 0.1 per cent over September 2015), and 1,102 other properties, averaging $383,793 (a decrease of 0.1 per cent).
Overall home prices remain steady, according to a quarterly survey by Royal LePage released earlier this month.
When broken out by housing type, the median price of a two-storey home in the third quarter of 2016 rose 3. prices increased 4.2 per cent to $402,844 and condos nudged up one per cent to $313,612.8 per cent year-over-year to $429,788, while bungalow
“The Ottawa market is benefiting from increased buyer confidence given the strong employment numbers, limited inventory and low interest rates,” says John Rogan, broker of record for Royal LePage Performance Realty. “People who came to Ottawa to fill roles in the new government are settled now so our inventory levels are down, driving buyers to come out in droves to compete for available listings.
As an active agent in Ottawa, Chris Steeves predicts that in most of the trendy downtown neighborhoods, demand will continue to increase and prices will continue to rise. Chris cautions that every area is unique, and should be analyzed on their own. Contact Chris for more info and for a free market analysis.