Limited Shortage of Residential Homes Continued to Increase Home Prices in Ottawa in December

Once again, the Ottawa real estate market during the month of December with record-breaking residential and condo sales, along with the average price for a residential home hitting just over $500,000 for the third time in 2019.  

Here is what the market did in December:

Record Residential Resale Home Sales

• 534 homes were sold in December 2019, an increase of 13.9 per cent, compared to 469 properties sold in December 2018. With these record sales, coupled with a limited shortage of residential homes available for sale in the market generated the average price of a residential home in the city to $500,306, a 10.3 per cent increase from 2018, where the price was $453,458. 

• Residential homes sold quickly on average from 62 days to 53 days on the market, which is about a 16 per cent decrease.

• Buyers continued to buy residential homes in the $350,000 and $500,000 price range, which accounted for 39.5 per cent of the residential home market, and $500,000 and $750,000, which accounted for 31.1 per cent of residential home sales.

• Buyers bought mostly: 
  • Two-storey homes - average sale price - $548,560 (previously $473,706 in December 2018) 
  • Bungalows (1-story) - average sale price - $462,784 (previously $397,352 in December 2018) 
     

• Most of the homes bought were in:
  • Downtown Ottawa - average sale price - $647,349 (previously $593,374 in December 2018)
  • Kanata/Nepean - average sale price - $536,584 (previously $486,276 in December 2018)
  • Orleans - average sale price - $494,962 (previously $449,154 in December 2018)

Record Sales in the Condo Market

• The condo market sold 227 condo units compared to 191 units sold in December 2018, an 18.8 per cent increase. 

• Similar to residential homes, condo units sold quickly on average from 72 days to 36 days on the market, which is a 49.8 per cent decrease. This shows a significant buyer demand in condos and their popular level of affordability compared to residential homes. 

• Buyers bought most of the condo units priced in the $225,000 - $350,000 price range, accounting for 60.7 per cent of the condo market. 

• The most sold condo units were:  
  • Two-storey homes - average sale price - $280,661 (previously $233,207 in December 2018)
  • One-level homes - average sale price - $324,783 (previously $301,784 in December 2018)

• Most of the condos bought were in:
  • Downtown Ottawa - average sale price - $342,735 (previously $321,604 in December 2018) 
  • Kanata/Nepean - average sale price - $285,607 (previously $233,908 in December 2018)

Ottawa East, West and South Continued to Dominate In Average Price Increases For Single-Family Homes

Single-family homes in the eastern, southern and western parts of the city gained significant average price increases from December 2018. This trend signals the purchasing pattern of eager buyers looking for opportunities throughout the city, especially in gentrifying neighbourhoods of Vanier, Sandy Hill, Lowertown and parts of Alta Vista and the growing neighbourhoods of Hunt Club, Findlay Creek and Kanata North and South.

Source: James Bagnall, @JamesBagnall, January 6, 2020