The 411 on the April housing market
APRIL AVG. SALE PRICES
*Important to note that varied pricing and conditions in different neighbourhoods affect average sale prices
The “too long; didn’t read”:
- 2,402 properties were sold last month, compared to 911 in April 2020
- Residential-property class saw 1,859 sales, Condo-property class saw 543 sales
- April had over 3,200 new listings of properties
- Sale prices for residential properties up 42%, and condos up 30% from last year
The 411 on the housing market in April
It has officially been over a year since the pandemic overwhelmed our lives, and April’s housing market made quite the comeback since then. A total of 2,402 properties were sold last month, compared to only 911 in April 2020, marking a 164% increase. This breaks down to 1,859 sales in the residential-property class (an increase of 166%) and 543 in the condo category (an increase of 155%). However, it’s important to take these colossal increases with a grain of salt and remember that in April 2020, we had only just started navigating the turbulent waters of COVID-19, which greatly affected the market. A more valid comparison would be to look at April 2019, which saw 2,026 sales and April 2018, which saw 2,024, meaning there was a 19% increase last month compared to pre-pandemic times—much more reasonable.
A reason to be ‘cautiously optimistic’
The arrival of Spring brought over 3,200 new listings in April, most of which arrived on the market in the former part of the month. Following the stricter lockdown measures that came into effect mid-month, the number of new listings dwindled. Even so, the Ottawa Real Estate Board (OREB) notes that there was still an increase in sales compared to previous Aprils and over 400 more units than the previous month, giving us, as OREB calls it “cautious optimism.”
Following the trend of lack of supply, prices continue on their steady uphill path; the average sale price last April for a condo-class property was $427,145, an increase of 30% from last year, and $743,204 for a residential property, an increase of 42%.
We remain hopeful that there will be a further increase in supply following the lockdown! However, getting a grasp on the market is more challenging than usual with so many factors in the mix, such as interest rate modifications, increasing cost of building materials, a potential increase in the mortgage stress test, and buyers opting for other locations. Not to mention the impact of the pandemic, which although has increased demand, has also left many people and businesses in tough situations. So we want you to know that if you’re looking to navigate this challenging market, you don’t have to do it alone. Send us an email at email@example.com—we want to help!