Despite the pandemic, the month of June has been outstanding for the Ottawa real estate market. The resale sector has rebounded to meet the pent-up buyer demand from the last several months as new listings have doubled in June as compared to April.
From a sales perspective June saw sales surge to within 2% of figures from this time last year, overcoming 45% and 55% decreases from April and May 2020. Buyers have come and made a strong point that the housing market in Ottawa is not only alive, but it is back to almost the same levels as last year.
If the high number of sales in June does not impress, the increase in the average price certainly will. With new inventory quickly being absorbed, we find ourselves in a strong Seller’s Market with June’s average residential sale prices jumping by 15 per cent. Condominiums’ average price also rose 17 per cent compared to that of June 2019.* We are once again seeing double-digit percentage increases over last year, with the average residential price now over $575,000. Multiple offer situations are certainly influencing market values - the Ottawa Real Estate Board (OREB) reported approximately 56% of all sales in June sold for over asking price.
Just over 48 per cent of all residential homes sold in June were in the $400,000 to $599,999 price range, while 22 per cent were in the $600,000-$799,999 span.
The most active price point for condos---$250,000 to $399,999---accounted for 65 per cent of the overall units sold.
The OREB President presented a forecast for the resale market in the coming months, noting, “We are seeing what I call a reverse slope. The market understandably experienced a bit of a valley, and now it is moving up the other side.”
In other words, the pandemic has delayed the typical Spring market peak which would normally occur in April/May. The anticipation is that the pent-up demand from the previous months will continue to drive the local market through the Summer and into early Fall.
Substantial demand with low inventory of properties, affordable interest rates, a solid federal government employment base and population growth all helped contribute to the strong Ottawa housing market. Additionally, Ottawa has been ranked in the top three “best communities in Canada to live’’ for the last three consecutive years by MacLean’s magazine.
*The real estate board cautions that the average sale price can be useful to look at overall trends but should not be used to establish whether specific properties have gone up or down in value –that all depends on prices and conditions within neighbourhoods, and can vary from block to block.