Back to life, back to reality, back to a classic August market

THE NUMBERS:  AUGUST 2021 AVG. SALE PRICES Residential-class: $674,449 (+14% from Aug. 2020) Condominium: $407,148 (+6% from Aug. 2020) *Important to note that varied pricing and conditions in different neighbourhoods affect average sale prices  NUMBER OF SALES IN AUGUST 2021 Residential-class: 1,175 homes (-25% from Aug. 2020) Condominium: 397 units (-9% from Aug. 2020)

THE NUMBERS: 

AUGUST 2021 AVG. SALE PRICES

  • Residential-class: $674,449 (+14% from Aug. 2020)
  • Condominium: $407,148 (+6% from Aug. 2020)

*Important to note that varied pricing and conditions in different neighbourhoods affect average sale prices 

NUMBER OF SALES IN AUGUST 2021

  • Residential-class: 1,175 homes (-25% from Aug. 2020)
  • Condominium: 397 units (-9% from Aug. 2020)

The “too long; didn’t read”: 

  • 1,572 properties were sold last month, compared to 2,006 in August 2020 
  • Fewer sales last August typical of market patterns
  • Despite the decrease in sales last month, year-to-date sales are 24% higher than in 2020, indicating a strong 2021 market
  • Scarce supply is still in the way of achieving a balanced market 

 Back to life, back to reality, back to a classic August market

The market in August gave us déjà vu of a pre-pandemic end-of-summer market. You could say we’ve grown accustomed to seeing incredibly high numbers from the lockdowns delaying market activity last year so much so, that seeing the number of sales from August 2021 seems like quite the dip. But it’s actually following a normal pattern—with numbers reminiscent of what we had in August 2017 and 2018 (what feels like centuries ago). 

In August, a total of 1,572 properties were sold—1,175 of which were in the residential-property class, a 25% decrease from August 2020, and 397 of which were condo-class properties, equalling a 9% decrease. Despite the decline, the reality is that the 2021 market is still going strong; a claim backed up by its year-to-date sales, which at 14,728, is a 24% increase from the same period in 2020. 

Supply, if you’re listening: come out, come out, wherever you are

Average sale prices are continuing their upward trend. In August, the average price of condos was $407,148, up 6% from last year. Not too crazy except for when you consider the year-to-date average, $420,654 which represents an 18% increase over 2020. For residential properties, the increase is even more with $674,449 as the average sale price in August, up 14% from last August, and its year-to-date average at $722,526, reflecting a 27% increase from last year. 

The culprit? Good ol’ supply, still playing hard to get. The number of new listings in August are 400 units below what we had in July, and 500 below what we had in August of 2020. In fact, for the first time since February of this year, it falls below the 5-year average. So, how far are we from reaching the balanced market of our dreams? Ottawa Real Estate Board (OREB) President, Debra Wright gives it to us straight: “although inventory is approximately 5-6% higher than last year for both residential and condominium property classes, we are only at about 1.5 months’ worth of housing stock. To achieve a balanced market, we need 4-6.5 months’ supply of inventory.” I guess we’ll keep dreaming.

That being said, along with the OREB, we are appreciative that real estate is a prominent subject for party platforms in the upcoming election. We are hopeful that practical solutions to provide all Canadians with the opportunity to become homeowners will come to fruition, and are dedicated to doing our part to contribute where we can. 

 

Let's connect! 

Reach out to us at info@realestating.coWe’ll help you find the home that meets your needs, or the perfect sweet spot to position your home in this market. 

 

Related links:

Leave a comment

Please note, comments must be approved before they are published