Ottawa Real Estate: What All Investors Should Know
Knowledge is crucial in investing, and this truism applies to the Ottawa real estate market as well In fact, it’s actually a good time for buyers of real estate property in Ottawa.
Fewer Real Estate Listings
Real estate owners these days don’t seem to be in the mood to sell their property. At the ends of October 2018, there were still 3,088 active residential listings for Ottawa. But that’s a drop of 17.5% compared to the number of active residential listings this time last year in the city.
There are also 860 condominium units listed. That may seem a lot, until you realize that it’s a reduction by an astonishing 34.5% from the year before.
In normal cases, such drops in the availability of residential homes and condos usually result in significant increases in the prices of these properties. But the prices of residential homes and condo units only increased by a modest amount compared to last year.
According to the Ottawa Real Estate Board, their agents were part of the sale of more than a thousand residential homes last month. The average price for each was $449,000. That’s only a slight increase of 5.7% from last year. Of course, for investors such an increase is obviously better than just letting the money stay in a savings account.
The same goes for the condo units, as these agents were involved in selling 324 units for an average of $271,350. That’s a mere 0.6% increase in the average price from the year before.
Here are some of the latest facts that investors in the Ottawa real estate market need to know:
- The most notable price increases for condo units were in the downtown core and in the east. Downtown condos sold for an average of $405,190 which is an increase of 13% from the year before. In the east, condo prices went up by almost 15% with average prices for condos now at $300,000.
- Other districts didn’t do as well for condo sales. In the west, condo units sold for an average of $302,800 and that’s a decline of almost 10% compared to last year’s average prices. In the south, the average of the prices for sold condo units was $223,100 and that’s a drop of almost 5%.
- For the most part, the biggest increases in residential prices were for homes in the periphery of the city, though there are of course notable exceptions. It’s true that the largest increases were in the Hintonburg-West Centretown area, with prices going up by 11.1% to $540,900.
- But the next highest price increase was for single-family homes in Orléans-Cumberland, where prices rose by 9.5% to $391,700.
- That’s followed by the 8.4% increase in home prices in Orléans-Convent Glen.
- Next is the 8.2% increase in the average price in Blackburn Hamlet. The increase in the average home price in this area is actually surprising, since in general the house price increases here haven’t done as well as in other districts. But now the average price has gone up to $414,600.
- If you bought a home in the western districts, its value has probably increased quite a bit. Homes in Carp went up by 8.9% to an average of $389,200. The average home price in Stittsville is now up to $491,600, and that’s a gain of 8.6%. The average home price in Barrhaven has gone up by 8.3% to $400,400.
- Still, as an investor you’ll be gratified to learn that the average home price in Ottawa is now $431,300 and that’s a 7% hike from the year before.