Ottawa’s resale market continued to struggle with low inventory in September even as sellers enjoyed healthy price growth, according to the Ottawa Real Estate Board.
Overall, members of the board sold 1,393 properties through the Multiple Listing Service, an increase of less than one per cent over the same month in 2017. The five-year average for September is 1,303.
Condos still out in front
Sales of non-condo properties dropped 2.5 per cent from a year ago as buyers competed in a tight marketplace. By contrast, condo sales jumped almost 12 per cent compared to September 2017.
That scenario has played out all year, with condo sales far outstripping other properties.
“We continue to experience supply-side issues going into our fall market. The fact is, the number of residential sales would be much higher had we more robust inventory to draw from,” OREB president Ralph Shaw said in a statement.
Price growth healthy
The average sale price of a non-condo property in September was $449,613, up 7.9 per cent over the same month last year. Condominiums averaged $282,781, an increase of 7.6 per cent compared to September 2017.
A lack of supply is “putting an upward pressure on prices in some areas,” said Shaw. “Condo price increases on a percentage basis are finally recovering and are catching up to the increases in (non-condo) prices, which is very encouraging news for condo owners.”
He added that healthy price increases, together with the declining number of rental condos, may kick start some of the new condo projects that have been mothballed for the past few years.