Ottawa Real Estate Board Stats for December 2019 and Year End Stats -“Record-Breaking 2019 Closes Out Decade

Ottawa Real Estate Board Stats for December 2019 and Year End Stats -“Record-Breaking 2019 Closes Out Decade

Some Key points to take from the News Release Below and Ottawa Real Estate Market in December 2019 and Year End for 2019:

• Ottawa Realtors sold 761 residential properties in December 2019 through the MLS system, compared with 660 units in December 2018, a increase of 15.3%
•  Out of the 761 sold units the breakdown is: 534  in the residential property class, a rise of 13.9% from a year ago, and 227 in the condominium property class, a increase of 18.8% from December 2018.
• The average sale price of a residential class property sold in December 2019 in the Ottawa area was $500,306 , an increase of 10.3% compared over to December 2018
• The average sale price for a condominium class property in December 2019 was $310,675 an increase of 11.5% from this month last year.
• The Total Number of residential and condo units sold throughout 2019 was 18,622 compared with 17,467 in 2018 and increase of 6.6% in more units sold for 2019
• The average sale price of a residential HOME throughout 2019 was $486,590 an 8.9% increase from average sale price in 2018.
• The average sale price of a residential CONDOMINIUM throughout 2019 was $304,203 an 9.3% increase from average sale price in 2018.
• Affordability and high rental costs is pushing people towards cost affective condos which is driving that market
• We are still in a very strong sellers’ market and will continue this trend through into 2020
• A lot of buyers are on hold as there is very limited inventory and a lot of buyers are moving towards either renting or purchasing outside the city in areas such as : Carleton Place, Kemptville, Enbrun, Russell, Casselman, Limoge just to name a few as they are getting more house and land for the price you pay going out of the city abit.
• You must be very prepared as a buyer in today’s market to be able to buy a home which includes: Financing to be 100% firm and approved, Doing pre-inspections on properties, Going to see properties as soon as they are listed and most importantly work with a good team to know all the info for competing in a bidding war as most properties in Ottawa area that are well priced will have multiple offers on the property.

This December and past year in 2019 was a record breaking year for Ottawa Real Estate as prices continue to rise and inventory continues to go down. In the last 7 years of being in Real Estate I have not seen the market like this as we are in an inventory crisis as in some areas there is almost nothing available or if there is it is maybe 1 or 2 properties available and each one is holding offers which will result in multiple offer situation.

We currently have a large list of buyers who are still waiting for the home they want and that list of buyers continues to grow and inventory continues to go down making it a very strong sellers’ market. A lot of buyers are now looking at renting for the time being or looking at properties just outside of the city of Ottawa in areas such as Carleton Place, Kemptville, Enbrun, Cornwall, Russell, Casselman and Limoge just to name a few. In today’s market if you are looking to buy a home you have to be able to move quickly and be prepared financially and mentally. To give you a perspective of how competitive the market is we listed a house in Orleans last week and we received 23 offers in total and out of 23 offers there was around 14 of them that had no conditions in the offer and were firm offers. That means majority of the buyers were submitting offers without any inspection or financing condition.

Ottawa is still growing quickly and with a lot of major developments and changes throughout the city this is a great to time buy and invest in the Ottawa Real Estate Market. The Stage 2 of light rail which is getting built will and is changing how and where people buy real estate in Ottawa as it will connect the East, West, South and Central Ottawa . This is just one of the major projects happening throughout Ottawa and in the next 10 -15 years Ottawa will not look the same so now is the time to buy and invest in our growing city!

We will see more growth in population and investment from people in GTA and West of Canada as they look to invest and move here in Ottawa as we have been named the best city to invest in by many real estate groups.

The strong sellers’ market will continue into the new year and I think by fall 2020 we should see abit more stabilization in the market in regards to inventory.

If you have any questions about Ottawa Real Estate or the stats then please let me know and would love to talk real estate with you.

 Check out full article from Ottawa Real Estate Board Below 

Record-Breaking 2019 Closes Out Decade

January 6, 2020

Members of the Ottawa Real Estate Board (OREB) sold 761 residential properties in December through the Board’s Multiple Listing Service? System, compared with 660 in December 2018, an increase of 15.3 per cent. December’s sales included 534 in the residential property class, up 13.9 per cent from a year ago, and 227 in the condominium property class, an increase of 18.8 per cent from December 2018. The five-year average for December unit sales is 720.

“December’s statistics reflect the same story we’ve seen all year – historically low supply yet higher unit sales than in previous years. Days on market continued to decline, especially in certain pockets of the city, as properties that came on the market were snapped up by prepared buyers,” states Dwight Delahunt, Ottawa Real Estate Board’s 2019 President. “Unit sales in the condominium class consistently led the way, offering lower price point options for homebuyers that simply weren’t available in the residential category,” he adds.

The total number of residential and condo units sold throughout 2019 was 18,622, compared with 17,467 in 2018, an increase of 6.6 per cent. Residential property class sales went up by 4.7 per cent with 14,038 properties exchanging hands last year compared to 13,411 in 2018. Condominium property class sales increased 13 per cent with 4,584 units sold in 2019 versus 4,056 in the previous year.

“2019 was a record-breaker in both the number of sales as well as average prices, with the residential property class reaching $500K in several months during the year. This price growth is warranted due to the fundamental economic principle of supply and demand playing out, with limited supply putting upward pressure on prices. However, even with these increases, Ottawa’s real estate market continues to remain one of the most affordable and sustainable in the country,” Delahunt stresses.

December’s average sale price for a condominium-class property was $310,675, an increase of 11.5 per cent from a year ago while the average sale price of a residential-class property was $500,306, an increase of 10.3 per cent from December 2018. Year-end figures show an average sale price of $486,590 for residential-class properties in 2019, an 8.9 per cent increase from 2018 and $304,203 for condominium properties, up 9.3 per cent from last year.*

OREB’s 2020 President, Deborah Burgoyne, forecasts Ottawa will continue to experience limited supply and reasonably increasing average prices this year. “Supply issues will surely persist into 2020, and I don’t expect the inventory will be able to recover in the near future,” she suggests.

“Builders do seem keen on constructing luxury rental units, which is something we haven’t seen much of before. These could potentially add inventory to the residential class, as boomers will have decent options if they are considering entering a different lifestyle than homeownership. However, even if supply increases, high demand has shifted market values upwards in various neighbourhoods and prices are unlikely to go back down – this is our new reality,” concludes Burgoyne.

* The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.

Thank you to Ottawa Real Estate Board for the article and can also be found on their website and the link below:

https://www.oreb.ca/newsroom/record-breaking-2019-closes-out-decade/

This is can be a great time to get your house on the market to sell in Ottawa as the inventory is still low again.  If you thinking of getting your home on the market soon or in the future please contact me and we can see exactly how the market has affected your home value.

If you would like to see the details on the Ottawa Real Estate Stats for last the previous month of November 2019 then please let me know and can send you a copy of that report.

Full sales data is attached in Blog

Your Ottawa Real Estate Professional

Sorin Vaduva

613-262-9562 - [email protected]