May 2020 a Seller’s Market despite C-19

Here is a quick overview of the statistics for home sales in Ottawa in May 2020:

Number of Sales:

• 1345 residential properties were sold, a decrease of 44 per cent compared to May 2019,
• of those properties, 1066 were “residential” (non-condo) sales, down 43% from May 2019,
• the remainder, 279 were condominiums, down 49% from May 2019,
• the 5-year average for total number of unit sales is 2048.

Commentary:

“Just as May’s temperatures had us questioning what season we were in, our real estate market also underwent a seasonal switch, so to speak,” notes Ottawa Real Estate Board President Deborah Burgoyne. “This spring market is performing more like a fall market with the number of new listings and resales on par with what typically occurs in late October and November.”

“Around mid-May, we started to see a restrained uptick in our numbers with monthly unit sales only 44% lower than May 2019, compared to the 55% year over year decrease in April’s figures. We expect that as the economy continues to rollout and consumer confidence increases, our real estate market will follow suit, the pent-up demand pre-Covid still exists. Our spring numbers are typical of our fall figures, with cautious optimism, we can hope that there is a ‘flip flop’ and our fall numbers are closer to spring figures.”

Average Sale Price:

• for Condo’s was $343,589, which is 15.5% higher than May 2019,
• for Residential non-condo’s was $548,140, a 11.2% increase over May 2019.

CMHC & Seller’s Market:

“Although the Canadian Mortgage and Housing Corporation’s (CMHC) forecast for Canada’s housing prices may seem pretty bleak, their broad-based analysis for the country as a whole does not accurately reflect what is transpiring in our local market as evidenced by the steady increases in average home prices in Ottawa – even during the crux of a pandemic and global economic recession.”

“Unquestionably, the fact that we are still in the midst of a seller’s market is a contributing factor. Nevertheless, with our region’s stable employment and a continuous influx of newcomers, homeowners can take comfort in the knowledge that owning a property in Ottawa and its surrounding areas is a solid investment for yourselves and future generations,” Burgoyne assures.

“Utilizing a REALTORS®’s experience, insight, and extensive professional network is particularly advantageous during this time. They will ensure you are only viewing properties that meet your hard criteria and can also identify possible alternative options to meet your goals, such as in-law suites or carriage homes for example.”

Dan’s Commentary:

There are many people in Ottawa that are still considering a move, but are unsure of timing. My general advice is that it’s a GREAT time to sell if you are intending to leave Ottawa or perhaps become a renter. The competition to buy homes in most price points and Ottawa neighbourhoods is fierce.

There are very few homes available compared to the active buyers.

I’m happy to discuss your options when convenient.