End of summer real estate recap: Ottawa housing market hottest in 15 years
You may have felt the summer heat this year on those sweaty Saturdays, but it’s nothing compared to the heat the Ottawa housing market was getting.
Let’s take a look at our end of summer real estate recap for Ottawa.
June 2019: Ottawa homes average above $500,000
For the first time ever in Ottawa, the average sale price of an Ottawa home surpassed $500,000. That is wild! We could literally end the article now and it would do it justice.
According to the Ottawa Real Estate Board (OREB), residential homes in June sold for an average of $500,716, an 11.6% increase year-over-year.
Now don’t forget, at the end of June, Ottawa officially surpassed one million residents of our Nation’s capital. With an increasing population and the tech sector continuing to boom, it’s no surprise Ottawa’s housing market is in high demand.
July 2019: the hottest in 15 years
With lots of vacations and family adventures in July, real estate in the city is usually quieter in July but not this year!
23% more condo sales took place in July this year compared to last year, and residential properties were up 12.3% according to OREB.
OREB president told the Ottawa Business Journal this represents July’s highest level of sales activity in 15 years. 15 years!
August 2019: average prices up 12%
It was unclear how August would go since the capital was holding just a one-month supply after a hot July, but the heat kept coming.
According to OREB, the average price for residential properties in August increased nearly 12% from last year for an average price of $484,900. This year's end of summer saw roughly 22% less available inventory for residents searching for a home, which helps explain the increase in average prices.
The market is competitive and buyers are coming ready to play.
But with these wild numbers, you may be wondering why things aren't worse for buyers. According to the Ottawa Citizen, Ottawa's sharp rise in new construction may be to thank for that.
This year we've seen more construction than previous years, and builders in the city have even invested into building more rental buildings as demand increases.
Ending the summer hot: biggest increase in 17 years
If you're looking to buy in Ottawa, it might sound intimidating but times are still good.
Will the market cool off? It's hard to say. Looking at Toronto, townhomes alone have continued to increase to a point where a comparable $400,000 unit in Ottawa can easily sell for $850,000 in Toronto. Getting your hands in property in Ottawa now could mean beating the rush and major increases down the road.
Disclaimer: This information is not formal advice or instructions. The primary focus of this content is to provide basic education and personal opinion. Any information used for a real estate purchase should first be consulted on a one-on-one basis with myself or another licensed professional.