Condo market recovery buoys Ottawa real estate market in July

More condo owners are bringing units to market as oversupply wanes
Condo

After a robust start to the year, Ottawa realtors caught their breath in July as the number of homes sold in Canada’s capital increased by a relatively modest 2.7 per cent, new figures show.

Members of the Ottawa Real Estate Board sold 1,530 homes last month, up from 1,490 in July 2016.

July marks the 14th straight month that year-over-year sales increased, according to the board’s figures. Home sales through the first half of 2017 were up 13.9 per cent over the same period last year, even as inventory levels decline.

“The number of new listings coming onto the market continues to be on the lower end,” said OREB president Rick Eisert in a statement.

The average resale price took a dip in July, falling to $420,335. That’s a significant decline from the $434,502 average resale price in June, but still up from $398,608 in July 2016.

Condo market gains momentum

One of the trends shaping the local real estate market in 2017 is a rebalancing of the condo market.

OREB said it’s been in a slump for several years due to developers saturating the market with new units. This prompted many would-be sellers to rent out their units instead, OREB says, as condo builders slowed the pace of new construction and allowed the market to absorb the unsold units.

But with signs of stronger condo sales, property owners are starting to put their units back on the market for sale as their rental leases turn over, OREB says.

The organization says condo sales are up by nearly a third over last year.