As we moved into September, housing prices continued to stay above average for this time of year.
“We continue to experience supply-side issues going into our fall market,” states Ottawa Real Estate Board President Ralph Shaw. “Economic fundamentals are at play in our market with a lack of supply putting an upward pressure on prices in some areas,” he adds.
Here are the September 2018 numbers:
- Total number of units sold: 1,393 – an increase of 0.7% from 1,387 in September 2017.
- Five year average unit sales for September: 1,303.
Here are the specifics of each property class:
- Number of residential-class properties sold: 1,046 – a decrease of 2.5% from 1,076 in 2017.
- Average sale price of a residential-class property: $449,613 – up 7.9% from $416,464 in September 2017.
- Number of condominium-class properties sold: 347, up 11.6% from 311 in 2017.
- Average sale price of a condominium-class property: $282,781, up 8% from $261,548 in September 2017.
Condos Are King This Fall
With lower residential inventory than usual, condos are making a rapid recovery from their slump of a few years ago.
“Condo price increases on a percentage basis are finally recovering and are catching up to the increases in residential prices which is very encouraging news for condo owners,” Shaw says.
This is also good news for builders who’ve had condo projects on hold.
“With the inventory of available apartment condo units also declining month over month; this trend of price improvements may help kick-start some of the mothballed condo projects to date,” Shaw says.
Millennials Have the Desire to Buy
The pressure on prices as of late has put some strain on the rental market as potential first-time buyers stay put, waiting for the right time and the right house. But many millennials and first-time buyers are part of the reason condominium sales continue to surge in Ottawa.
“The low rental vacancy rate is spurring the purchase of condominium units, and first time home buyers wanting to enter the market are having to choose between “driving until they qualify” or purchasing a condominium at a price point they can afford,” Shaw explains.
“Although the millennial generation is comfortable sharing their rides, they are not in the sharing mindset for housing – they want to own,” Shaw says. “In a recent study commissioned by the Canadian Real Estate Association (CREA), research conducted by Abacus Data shows that Housing Affordability is a key issue and the homeownership dream is alive and well with this demographic.”
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You need a realtor on your side if you’re going to buy or sell in this market.
The Paul Rushforth Real Estate team has the experience, knowledge, and resources to handle everything from negotiations and paperwork to showings and marketing. We’ll get you the right house – or the perfect buyer – at the right time and price.