Sun’s out, inventory’s up: the July market

THE NUMBERS:  JULY 2021 AVG. SALE PRICE  Residential-class: $685,426 +17% - Condominium: $419,545 +17% NUMBER OF SALES IN JULY 2021 Residential-class: 1,312 -20% - Condominium: 412 -24%

THE NUMBERS: 

JULY 2021 AVG. SALE PRICES

  • Residential-class: $685,426 +17%
  • Condominium: $419, 545 +17%

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

NUMBER OF SALES IN JULY 2021

  • Residential-class: 1,312 homes -20%
  • Condominium: 412 units -24%

The “too long; didn’t read”: 

  • 1,724 properties were sold last month, compared to 2,183 in July 2020
  • Residential-property class saw 1,312 sales, Condo-property class saw 412 sales
  • Sale prices for residential properties up 17%, and condos up 17% from last year
  • Residential inventory up 19% and condo inventory up 23% from last year

Sun’s out, inventory’s up: the July market 

As far as market trends go, nothing is more distracting than the allure of summertime, with sunny days, blue skies, and the opportunity to go outside without first putting on 18 layers of clothing. Not to mention this year, summertime teamed up with the reopening from the pandemic. With this level of distraction, it’s normal to see the resale market cool off a bit.

1,724 properties were sold in July 2021, of which 1,312 were residential-property class units and 412 were condo-property class units. Before we compare this to the numbers from last year, in July of 2020, we have to keep in mind there are some caveats this month, which we’ll come back to. In July 2020, total sales were 21% higher than this year, with 2,183 units sold. Residential-property class sales was 20% higher and condo-property class was 24% higher.

The average sale prices in July 2021 went up 17% from last year, coincidentally for both residential and condo class properties. This brought the average sale price of condos to $419,545, and residential properties to $685,426. Looking from month-to-month, the average prices decreased slightly by 4-6% from June, but the big picture shows that averages have been going up from 2020. 

More fish in the sea

Now back to those caveats; there is a good explanation for what appears to be a huge decrease in sales from last month. The answer is two-fold: first, like we mentioned, this summer was a double-whammy for distractions, and second, extraordinary circumstances at play triggered particularly high sales in July 2020. Although it already feels like a lifetime ago, the lockdown during spring of 2020 stalled the market and as a result, postponed its peak to the summer months. With these factors at play, it’s unfair to compare the two Julys when it comes to sales, but July 2021 did bring another card to the table: an increase in housing stock. 

Residential inventory is 19% higher than in 2020, while condo inventory is 23% higher, bringing the number of new listings last month above the five-year average by approximately 114 units. So, there’s hope after all that we might finally be able to get back to a more stable relationship with the market *phew*.

That being said, more fish in the sea means more strategy required in the sellers’ pool and more choices and considerations for buyers. Reach out to us at info@realestating.co and we’ll help you find the home that meets your needs, or the perfect sweet spot to position your home in this market. 

 

Related links

1. OREB - July's Resale Market Stabilizes

2. CTV - Ottawa's real estate market cools in July as home sales drop by 21 per cent 

3. Ottawa Citizen - Ottawa's housing market cools off in July, but year-over-year gains still top 15 per cent

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