Dwight Delahunt, president of the Ottawa Real Estate Board notes that Ottawa’s market continues to suffer from low inventory. This has caused the increase in the selling price of residential homes, as well as condominiums because buyers are having to become less picky as to what they buy since there is not as much inventory to choose from. According to Delahunt, the number of residential homes listed decreased almost 18% compared to April 2018, and almost 40% for condominiums. However, compared to last April home sales still increased by 0.4% and there was an increase in sales of condominiums by 5.3% - which is good if you are looking to sell your condo.
This, alongside the stress test for buyers has created a ‘Catch 22’ situation where they are limited in what they are able to purchase, however prices continue to rise – and this is expected to continue into the foreseeable future.
Residential homes between $350,000 and $499,999 have accounted for 44% of sales in April, seeming to make this price point the most appealing for buyers. Residential houses priced between $500,000 and $749,999 came just below that with 28.5% of the total sales.
Although the tight inventory has pushed people to the higher end of the market, they are still well under the Canadian average. Some homes have seen an increase in prices but there are still many selling below the list price.