Ottawa’s robust resale market bucks national trend

Ottawa’s robust resale market continues to buck national trends, according to the latest numbers for the city.

The Ottawa Real Estate Board reports that, in July, board members sold 1,842 properties through the Multiple Listing Service (MLS) System. That’s a leap of 14.8 per cent over the 1,605 sales in the same month last year. It compares to a listless month-over-month growth nationally of 0.2 per cent in June, the last period for which numbers are currently available. That number was reported by the Canadian Real Estate Association.

Ottawa’s July sales were also the highest for that month in 15 years.

July usually a slower month

“Typically, after the busy spring, July tends to be a slower month as people take vacations and spend more time with their families, but there was no slow down this past month,” said board president Dwight Delahunt in a statement.

He added that July also saw a small uptick in new listings, which has slightly improved resale inventory in the city. Inventory has been very tight for more than a year.

However, Delahunt cautioned that the small increase in inventory is not enough to return the market to a balanced state. Instead, Ottawa continues to be a sellers’ market.

Prices jump as well

Residential-class properties sold for an average of $487,308 in July, an increase of 10.4 per cent from a year ago. Condos averaged $299,665, an increase of 6.8 per cent.

By contrast, resale prices nationally continue to be limp. For June, the Canadian Real Estate Association reported that prices grew an average of just 0.3 per cent.

In Ottawa, year-to-date prices are up 7.4 per cent for condominiums and 8 per cent for other properties.

“Residential house prices continue to increase; however, these are reasonable gains and are not creating a bubble by any stretch,” said Delahunt. His reassurance is supported by a new report from Canada Mortgage and Housing Corporation, which sees no evidence of an overheated or overpriced market in Ottawa.

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