Market in a Minute - March 2020
Welcome to the beginning of the spring real estate market! The beginning of 2020 has seen consistent and steep increases in both residential and condominium sales, with most properties going for over the asking price.
In the month of February, a total of 1,141 properties were sold in Ottawa, which is a slight increase from February 2019. Of that, 73% were residential and 27% were condos. Residential property price’s increased 10.9% compared to 2019 and condominium prices increased 22.9%.
The Ottawa Real Estate Board President Deborah Burgoyne stated, “Activity overall has gone up with more listings coming on the market (though still well below the five-year average) and the highest number of February transactions in over 15 years.”.
The most obvious decrease has been how long properties stay active in the current Ottawa real estate market. Although we are seeing an increase in the number of homes being listed for sale, these homes are staying on the market for a matter of days before they sell, usually after receiving multiple competitive offers from buyers.
The average sale price range for condominiums in Ottawa this past February was $349,819, which is a 21.3% increase over the average sale price in 2019. The average price for residential sales last month was $563,694, which was also an increase over last year of 20.5%. These increases are a result of lack of inventory. In other words, there are not enough houses going up for sale to keep up with the number of buyers searching.
If you are looking to sell your home this spring, the market is certainly in your favour. This does not mean, however, that you can just stick a sign on your lawn and expect your home to sell well over your asking price in a matter of days. If anything, this is the time to carefully pick an agent that will make sure that your home is prepared properly to sell and will market your home appropriately. Proper marketing can make a big difference in the price you will get for your home.
These price increases are likely to continue until the Ottawa real estate market stabilizes and the supply and demand for homes are more balanced. If you are house hunting in the residential range of $400,000 to $549,999 or condominium range of $250,000 to $399,999, get ready for a wild spring. To be fully prepared, have your mortgage pre-approved, have all of your financing in order, and have liquid funds ready to place a deposit on your dream home. Teaming up with the right agent for you will make this market much more easy to navigate.
Give me a call if you are thinking about buying or selling your home and I will be more than happy to help!