Members of the Ottawa Real Estate Board sold 663 residential properties in December through the Board’s Multiple Listing Service® System, compared with 765 in December 2017, a decrease of 13.3%. YTD activity increased by 2.4% from 2017. The total number of residential and condo units sold throughout all of 2018 was 17,476, vs 17,065 in 2017. The last 2 years have experienced significant activity with a 12.6% increase in unit sales from 2016.
The Ottawa area has excellent employment numbers and has proven to be one of the most affordable larger cities in the country. An overall shortage of inventory in 2018 caused residential unit sales to slide and condo unit sales to rise. In addition, the mortgage stress test – an attempt by the federal government to cool two major markets – has made it more difficult for first-time buyers and has made move-up buyers less likely to take that step which would free up entry-level options.
The average sale price of a residential-class property sold in December in the Ottawa area was $453,011, an increase of 4.7% over December 2017. The average sale price for a condominium-class property was $278,295, an increase of 9% from this month last year. Year-end figures show an average sale price of $446,661 for residential-class properties in 2018, a 5.1% increase from 2017 and $278,316 for condominium properties, up 3.2% from last year. It is expected that the economic fundamentals of supply and demand will put upward pressure on prices in 2019 due to limited supply and increasing demand.
As I'm sure you know, not every area/neighbourhood is the same. If you are thinking of buying or selling, please do give me a call. I'm happy to help.