Following the frantic pace of last year, Ottawa’s July 2021 resale market suggests we may be headed toward a more normal state, reports the Ottawa Real Estate Board.
Board Realtors sold 1,724 homes last month through the Multiple Listing Service (MLS), a plunge of 21 per cent compared to the same month last year, when they sold a sizzling 2,183 homes. However, the most recent number is in line with the five-year average of 1,775 for the month.
July sales included 1,312 non-condo properties and 412 condos. Those numbers were down 20 and 24 per cent respectively compared to last year.
“July’s unit sales followed the traditional cycle of the spring and summer markets, which tend to peak around April or May and then slow down as buyers and sellers turn their attention to their vacations and other outdoor recreational activities,” says board president Debra Wright.
She adds that the reopening of the economy last month may have also impacted sales and points out that July 2020 sales numbers were unusually steep because the spring lockdown shifted the resale market to the summer and fall.
Prices adjust to summertime
The July 2021 resale market saw non-condo prices average $685,426 and condos average $419,545. Both those prices were 17 per cent higher than last year, but July’s non-condo prices were down six percent and condo prices slipped four per cent compared to June 2021.
This dip is typical during the summer months, according to Wright, and year-to-date values are holding steady, with non-condos selling for 30 per cent more than they did for the first seven months of 2020 and condos running 20 per cent more. However, she cautioned, “sellers will need to keep in mind that the multiple offer frenzy experienced previously is no longer the norm, and they may need to have more realistic expectations when positioning their homes and settling on a listing price.”
Inventory grows in July 2021 resale market
The stock of both non-condos and condos was favourable again in July, slipping from June’s four-year high point but exceeding the five-year average for the month. The growth in listings began earlier this year and bodes well for buyers, including first-timers, many of whom have been squeezed out of the local housing market by a combination of soaring prices and tight inventory.
“Along with the price stabilizations, we hope (rising inventory) may indicate that Ottawa’s resale market is moving towards a more balanced state, which would be good for everyone,” says Wright.