The Ottawa Real Estate Market is on Fire -- the reality of low inventory and high home buyer demand
Decreasing supply of available homes for sale in Ottawa coupled with a consistently high demand causing the Ottawa Real Estate Market to experience very high home value appreciation. Supply has been shrinking since about 2018 while demand stayed consistent. A few years we looked at the real estate markets of other cities and thought whatever was happening there could not happen in Ottawa. It is happening now. Here are the stats from the Ottawa MLS listings platform.
Overview: the average price for Ottawa resale houses jumped an incredible 19.3 per cent to $516,200 from the same month in 2019. Ottawa condo resale prices increased almost identically by a very strong 19.1 per cent to $338,100.
Available supply of Ottawa properties at the end of January, 2020: there were just over 1,400 houses for sale, a huge 35 per cent decrease from a year earlier. The number of Ottawa condos listed on the Ottawa MLS collapsed by 63 per cent year over year to a just above 250. Yes that is not a typo. In a city of over a million residents or about 400,000 residential dwellings there were about 250 condo units for sale this month. And we believed 2019 was already short on supply!
Sales Volume: Ottawa real estate agents sold 558 houses in January, a decrease of just eight per cent from a year earlier. 222 condos sold, up almost seven per cent from January 2019. Overall, the number of resales in January was down five per cent from the same month a year ago.
Number of Days on the Market to Sell a Property: Residences sold in January had been listed an average of 55 days compared to 72 days for sales in January 2019. Condos in Ottawa moved faster, 39 days on average, decreased significantly from 73 days a year earlier.
“Persistent supply challenges seem to have finally caught up with us,” said board president Deborah Burgoyne. “We don’t expect this trajectory to change anytime in the foreseeable future.”
These six districts that comprise 43 per cent of total sales (Source: Ottawa Citizen). These are:
- Blossom Park-Airport, where the average residential price in January was $595,000. This was up 31 per cent from a year earlier, based on 23 sales, half of them in the Riverside sub-district. The average for the full district was skewed upwards last month by a few unusually rich sales ($776,000 plus) along the Airport Parkway. Sales in the Riverside sub-district averaged about $570,000 — up about 20 per cent.
- Barrhaven. Prices for residential properties were $522,500 — a gain of 18 per cent on 44 sales.
- Orléans-Cumberland. Prices averaged $498,000 — up 14 per cent year over year, based on 46 sales.
- Kanata. Prices were $531,200 on average for the 73 residences sold — up 10.4 per cent from January 2019.
- Orléans-Convent Glen. Residences fetched $515,000 on average, up nearly 10 per cent for the 24 units sold last month.
- Stittsville and area. Prices averaged $526,100, up a comparatively modest 7.3 per cent on 25 units that changed hands.
There’s a reason these six districts regularly account for nearly half of the city’s residential sales, month after month. There’s actually a reasonable amount of supply, and the prices have not yet reached the extravagant heights seen in trendy neighbourhoods such as Westboro, Dow’s Lake, the Glebe, Civic Hospital and New Edinburgh — where average prices now top $900,000.
(Sources: Ottawa Real Estate Board and The Ottawa Citizen)