The month of May, 2017 was a spectacular one for the Ottawa real estate re-sale market, with sales numbers breaking not only the record for the month of May but also surpassing the best single-month sales numbers ever seen in our region, the Ottawa Real Estate Board has reported.
In its latest release, the Board also reported that the region is continuing in its trend toward a sellers’ market, and the average sales price for a residential unit in May was up more than 7 per cent over the average price in May of 2016. And there was also good news on the condo market, with stronger sales numbers, continuing the trend of the past few months.
Including both condos and residential properties, the Board reported its members sold 2,300 units in May through the Multiple Listing Service. That’s up from the 1,919 properties that sold in May of 2016, representing a whopping increase of 19.9 per cent. It’s also well above the five-year average for May sales, which is 1,946.
As well, the Board reports that May’s sales numbers broke the record for the best monthly sales numbers ever, by 315 units for the month.
Rick Eisert, President of the Ottawa Real Estate Board, said in a news release that “one of the reasons for these stellar numbers can be attributed to the condo market, which has really helped strengthen the whole market in the past several months.
“This is quite evident in May, where units sold increased by 44.6 per cent over May 2016.”
May’s sales in the Ottawa area included 444 units in the condominium property class and 1,856 in the residential property class. The condominium property class includes any property which is registered as a condo, as well as properties which are co-operatives, life leases and time shares. The “residential property” class refers to all other properties.
Rick Eisert says sales activity in May “continued to trend towards a sellers’ market, as evidenced by lower than normal inventory levels and listing averages for May, more multiple offer situations and fewer days on the market, but prices still remain relatively steady. Eisert adds, however, that “if we were in a true sellers’ market, we would expect to see a much higher spike in prices.”
The Board reports that the average sale price of a residential-class property that sold in May in Ottawa was $436,625, an increase of 7.4 per cent over the average price in May of 2016. The average sale price for a condo property, meanwhile, was $270,993, an increase of 2.3 per cent over the price in May of 2016.
As it always does, the Board cautions that while the average sale price in a given month “can be useful in establishing trends over time,” it “should not be used as an indicator that specific properties have increased or decreased in value.” That’s because “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.”
The Board also reports that in May, higher-end residential units in the range of $750,000 and higher “continue to outperform sales from last year, especially in the $1 million + range, where unit sales have almost doubled those in May, 2016.
“We are not seeing quite the same trend for condo units though, where there are increases in units sold in almost all price ranges.”
The two most active price points in the residential market “continue to be in the $300,000 to $399,999 range followed by the $400,000 to $499,999 range,” the Board reports, “combined accounting for 56.4 per cent of the market. Within the condo market, the most active price point was between $150,000 and $249,999, accounting for 50.7 per cent of the market,” Rick Eisert said.
If you’re interested in buying or selling in the Ottawa area in coming months, I’d love to meet with you and chat about the market. You can contact me through my website, at www.nancybenson.com, or give me a call at 613-747-4747.