July’s Real Estate Market Slows Down

As things are beginning to open up again, people don’t want to think about buying or selling their home. We’re seeing people going on vacation and enjoying their summer. Does this mean we’re heading towards a more balanced market or are is this just a calm before the storm?

Here are the July 2021 numbers:

  • Total number of units sold: 1,724 – down 21% from 2,183 in July 2020.
  • Five-year average unit sales for July: 1,775.

“July’s unit sales followed the traditional cycle of the spring and summer markets, which tend to peak around April or May and then slow down as Buyers and Sellers turn their attention to their vacations and other outdoor recreational activities,” states Ottawa Real Estate Board President Debra Wright. “This year’s figure is closer to 2019’s (1,838 sales) and just shy of the 5-year average, with the slight decline in transactions perhaps due to the combination of summer and the reopening of the economy last month. Certainly, the marked decrease from last year’s July sales is due to the spring 2020 lockdown, which had shifted the 2020 resale market’s peak to the summer and fall months,” she adds.

Here are the specifics for each property class:

  • Number of residential-class properties sold: 1,312 – down 20% from 1,574 in July 2020.
  • Average sale price of a residential-class property: $685,426 – up 17% in July 2020.
  • Number of condominium-class properties sold: 412 – down 24% from 511 in July 2020.
  • Average sale price of a condominium-class property: $419,545 – up 17% in July 2020.

“Following the same trend as sales, the month-to-month average prices decreased marginally by 4-6% compared to June; however, this minor dip is consistent to what typically happens during the summer months. Overall, average prices have increased considerably from 2020, and year-to-date values are holding steady. Still, Sellers will need to keep in mind that the multiple offer frenzy experienced previously is no longer the norm, and they may need to have more realistic expectations when positioning their homes and settling on a listing price with their REALTORS®.”

“We are seeing the housing stock increasing with residential inventory up 19% and condominium supply 23% higher than 2020. Although there were 700 fewer listings than in June, the number of properties that entered the market in July is over the five-year average by approximately 114 units. Along with the price stabilizations, we hope this may indicate that Ottawa’s resale market is moving towards a more balanced state, which would be good for everyone,” suggests Wright.