Looking back at it (the housing market in May that is)

 

THE NUMBERS: 

  • MAY AVG. SALE PRICES

  • Residential-class: $741,206

    Condominium: $424,843


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


    The “too long; didn’t read”: 

    • 2,296 properties were sold last month, compared to 1,342 in May 2020
    • Residential-property class saw 1,779 sales, Condo-property class saw 517 sales
    • May had over 3,100 new listings of properties 
    • Sale prices for residential properties up 35%, and condos up 24% from last year

    Looking back at it (the housing market in May that is)


    For Ontarians, May 2021 and May 2020 were both spent in lockdown—deja vu much? But somehow May 2021 still felt different; perhaps it’s the vaccine roll-out, bringing a newfound sense of hope, but even the housing market in Ottawa felt it. May 2021 saw twice the number of listings enter the market compared to this month last year. With 2,386 new residential listings, and 727 condo listings bringing the grand total to 3,113, it surpassed even the five-year average by approximately 50 units. 


    Comeback of the condos


    As we’ve adapted to living with COVID, with better safety measures in place and a light at the end of the tunnel—buyers and sellers are engaging more in housing market activities. Last month’s number of transactions topped the five-year average of 2,123, with total sales at 2,296, a 71% increase compared to May 2020. To break it down further, in the residential-property class, 1,779 properties were sold (up 67% from last year) at the average price of $741,206, representing a 35% price increase. Residential-class properties have not wavered this year with 46% of listings selling over $700K in 2021 so far, compared to the 16% this time last year. 


    However, May 2021 was a time for the condo-class to shine; with 517 condos sold, it was an impressive 85% increase from last year. Between that and the average sale price of $424,843—a 24% price increase from May 2020—it seems the condo market is making an iconic comeback from its struggles early in the pandemic.


    Fingers crossed for good news


    Call us optimistic but the Ottawa Real Estate Board says that the month-over-month average price increases for April and May aren’t as high as what we saw in the first few months of 2021 and that might be reason to believe the rapid price acceleration is easing up. It’s too soon to say for sure, but we’ll keep our fingers crossed! 


    In the meantime, the Board will continue to monitor other market factors as we emerge from the lockdown such as, increased stress test measures, climbing five-year fixed mortgage rates (now over 2%) since the beginning of 2021, and if the pent-up supply is enough to counter the supply shortage we’ve been facing. Perhaps the stars will align for some more balance in the future of the Ottawa real estate market. 


    As always, you know where to reach us: send us an email info@realestating.co—we want to help you navigate this ever-changing market!

     

     

     

    Related Links 

    1. https://members.oreb.ca/wp-content/uploads/2021/06/NewsReleaseMAY_2021.pdf

    2. https://ottawa.ctvnews.ca/answers-to-your-questions-about-ottawa-s-real-estate-market-1.5412099

     3. https://ottawacitizen.com/news/local-news/what-could-you-get-for-1-million-in-the-ottawa-real-estate-market

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