Home Prices Are Starting to Cool Down - Good News For Buyers

Home buyers can begin to breathe a sigh of relief as home prices in the competitive Ottawa real estate market have increased modestly in October 2018 compared to October 2017. The average price for residential homes in the market was at $449,000, a 5.7 per cent increase from the same month last year. For condo homes, the average price was $271,350, only a 0.6 per cent increase from last October.

Here is how the Ottawa real estate market performed in October 2018:

Increased Residential Home Sales 

• The residential market had an increase in sales with 1,059 homes sold compared to 976 homes sold in October 2017, an 8.5 per cent increase. This is the result of the limited supply of residential homes available for sale in the market. 

• The majority of the residential home sales were in the $300,000 and $450,000 price range, accounting for 43 per cent of the residential market, and $500,000 and $750,000, which accounted for 20 per cent of residential home sales.

• To date, the average number of days on the market for residential homes are from 45 to 39 days.

• Buyers bought mostly: 
  • Two-storey single-family homes - average price - $470,793 (previously $444,073 in October 2017)
  • Bungalows - average price - $387,174 (previously $388,834 in October 2017) 

• Most of the homes bought were in:
  • Casselman/Hawkesbury/Rockland - average price - $304,711 (previously $282,318 in October 2017)
  • Kanata/Nepean - average price - $447,461 (previously $432,219 in October 2017)
  • Central Ottawa - average price - $605,608 (previously $537,723 in October 2017)
  • Orleans - average price - $425,223 (previously $415,575 in October 2017)

Condo Market Continues to Be Strong

• The condo market sold 324 condo units compared to 261 units sold in October 2017, a 24.1 per cent increase.

• The majority of the sales occurred in the $175,000 and $275,000 price range, accounting for 53 per cent of the condo market. 

• To date, the average number of days on the market for residential homes are from 68 to 51 days.

• The most sold units were: 
  • two-storey homes - average price - $244,177 (previously $229,771 in October 2017)
  • one-level homes - average price - $290,573 (previously $296,654 in October 2017)

• Most of the condos bought were in:
  • Central Ottawa - average price - $308,604 (previously $308,871 in October 2017)
  • Kanata/Nepean - average price - $237,845 (previously $232,771 in October 2017)
  • Orleans - average price - $220,021 (previously $216,501 in October 2017)

Increased Property Values For Single-Family Homes In West-End and East-End Ottawa 

According to the Ottawa Real Estate Board, west-end Ottawa continued to experience growth in price increases of single-family homes over a one-year period (from October 2017 to October 2018), particularly in:

• Hintonburg-West Centretown ($540,900 — an 11.1 per cent increase) 
• Carp ($389,200 — an 8.9 per cent increase)
• Stittsville ($491,600 — an 8.6 per cent increase)
• Barrhaven ($400,400 — an 8.3 per cent increase)

Despite continued price increases in the west end, single-family homes in east-end Ottawa also experienced significant financial gains in increased property values of their homes in the following neighbourhoods: 

• Orléans-Cumberland ($391,700 — a 9.5 per cent increase)
• Orléans-Convent Glen ($438,800 — an 8.4 per cent increase) 
• Blackburn Hamlet ($414,600 - an 8.2 per cent increase)

There were modest increases in:

• Westboro — Hampton Park ($642,100 — a 4.9 per cent increase)
• Lowertown — Sandy Hill ($617,600 — a 2.7 per cent increase) 

Helpful Tips: 

Here are some practical and proven tips for selling your home for top dollar:

• Pricing it the right way:  Determine how much your home is current worth, then reduce around 15 to 20 per cent off the price. This will lead to multiple offers from buyers, who bid up the price over what it’s worth. This is useful in a sellers' market which the Ottawa real estate market is currently experiencing.

• Increase lighting in your home: It is essential to maximize the amount of light in your home. Good lighting is one important factor that every buyer is looking for in a home. For example, remove the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in the sunshine.

• Avoid the over-upgrade of your home: Quick minor repairs before selling your home always pay off compared to large renovations.  You may not significant return on your investment when you complete a huge improvement project before you put your house on the market. Instead, do updates that will sell your home for top dollar, such as getting a new fresh coat of paint on the walls, cleaning the curtains or buying some inexpensive new ones and replacing door handles and cabinet hardware. Also, make sure your closet doors are on track, fix leaky faucets from your sinks and clean the grout on your kitchen and bathroom tiles. 

• De-personalize your house: It is essential that you make every effort to make your home neutral when selling it in the market This means removing your personal belongings. The more personal stuff in your house, the less potential buyers can imagine themselves living there. To avoid this situation, remove one-third of your personal items, such as family photos, memorabilia collections and other personal items and place them in storage in your basement and/or closet spaces. You may want to consider hiring a home stager to maximize the full potential of your home by arranging your furniture to best showcase the floor plan and maximize the use of space your house will offer.