There is demand for homes in Ottawa but inventory continues to subdue the market.
Sales in September rose just 0.7% to 1,393 according to the latest data from the Ottawa Real Estate Board.
While the total is still well-above the 5-year average for the month (1,303) the lack of inventory, especially in residential class homes, remains a challenge for buyers and a driver of higher prices.
“We continue to experience supply-side issues going into our fall market. The fact is, the number of residential sales would be much higher had we more robust inventory to draw from,” states Ottawa Real Estate Board President Ralph Shaw. “Condos continue to represent a greater proportion of year-to-date unit sales with a 15% increase from this time in 2017.”
The average sale price of a residential-class property sold in September in the Ottawa area was $449,613, up 7.9% year-over-year while the average sale price for a condominium-class property was $282,781, an increase of 7.6% from a year earlier.
“The low rental vacancy rate is spurring the purchase of condominium units, and first time home buyers wanting to enter the market are having to choose between “driving until they qualify” or purchasing a condominium at a price point they can afford,” added Shaw.