February’s Resale Market Back in Overdrive

Ottawa Real Estate Sale Prices Continue Upward Trend in February 2020

The Ottawa Real Estate Board recently released the statistics for the sales within the board in February 2020. Here is an overview:

The number of homes sold in February 2020 (1,141) was 13.9% higher than February 2019 (1,002). The moving 5-year average for number of sales in February is 1,006.

Sale Prices

According to the Ottawa Real Estate Board (OREB), the average sale price (February 2020 vs. February 2019) of residential (non-condo) homes increased 21.1% to $563,694. Condos increased 21.3% to $349,813.

Inventory vs. Sales: Seller’s Market

According to recently released OREB statistics for February, freehold homes have just over 3 months of inventory and condominiums have just over 2 months of inventory. Less than 4 months of inventory suggest that seller’s still have the upper hand and it’s a fairly strong seller’s market for residential properties in Ottawa.

Feb 2020 Inventory

Feb 2020 Inventory

Notes from OREB President:

“After a record-breaking 2019, January saw a minor dip in sales; however, February’s numbers suggest Ottawa’s resale market is heading back into overdrive,” observes Ottawa Real Estate Board President Deborah Burgoyne.

“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.”

Days on Market (DOM)

“The average Days on Market (DOM) decreased to 30 days for residential properties, down 12% from last year and condos fell 58% to 19 DOM. Figures for median Days on Market bring those numbers down to 9 DOM (combined). As a matter of fact, in specific highly sought after neighbourhoods, sold signs are going up after only 1-2 days.”

Multiple Offers

In February 2019 about 32% of properties sold over asking price. Historically and rationally speaking, that seems like a really high number. Those of you that were trying to buy a home in early 2019 might not be surprised.

According to OREB (Ottawa Real Estate Board), in February 2020, about 58% of homes sold OVER ASKING!

I should be surprised, but I’m not, as I see the homes come to market and the sale prices within a few days. What you must remember though, is that these statistics represent the homes that sell. There are a few homes that don’t sell. They sit on the market and don’t affect any of the averages until they are sold.

If a home is not selling in this very hot market, then something is wrong. Pricing will generally fix things though.

Activity

More from OREB:
“The most active price range in the residential market was $400,000 to $549,999, accounting for 39 per cent of the units sold while $250,000 to $399,999 represented the most prevalent price point in the condominium market, accounting for 55 per cent of February’s transactions. “With the first day of spring only weeks away, I suspect the frenzy of the spring market will be well upon us before the weather catches up,” speculates (OREB President) Burgoyne. “When there is limited inventory, it’s always a good time to sell, and the earlier you get on the market, the more you can differentiate your home. Be sure to entrust your home sale or purchase to an experienced professional.”

Moving Forward

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Dan Moloughney, Broker of Record
Ottawa Urban Realty Inc.

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