Ottawa’s record-breaking home sales streak ends despite increased condo sales

Ottawa’s consecutive record-breaking home sales streak came to an end in November, which traditionally is a typical pattern where homes sales slow down. However, the good news is that the condo market has started to move in a positive direction. This could be the result of reduced condo inventory levels, steady prices and the buyers being affected by the recent changes to the mortgage rules, according to the Ottawa Real Estate Board.

Here is the snapshot of Ottawa real estate sales performance in November (compared to November 2015):

● The majority of the sales for residential properties were in the $300,000 to $400,000 price range, which accounted for over 50% of the market, while most of the condo sales occurred in the $150,000 to $250,000 price range.

● The highest average sale price increases and units sold for residential properties were in:
– two-storey homes at $429,969 (up by 9.8%) with a 2.4% increase in units sold;
– three-storey homes at $503,583 (up by 10.9%) with a 10.2% decrease in units sold; and
– duplex homes at $484,750 (up by 17.8%) with a 60% decrease in units sold.

● There were no significant average sale price increases for condos, however there were significant increases in units sold in:
– three-storey homes (up by 55.6%); and
– one-level homes (up by 16.8%)

You can read more about this market update here.

On a side note, the Ontario government recently announced that effective January 1, 2017, the Land Transfer Tax Rebate for first time home-buyers will increase from $2,000.00 to $4,000.00. This policy decision is a positive step to help these home-buyers have the affordability to purchase their first home.

With this recent government announcement, do you think that first-time home-buyers can still afford to buy their dream home?

About the writer

Michael Arthur is a realtor with RE/MAX Core Realty Inc., who specializes in residential properties and leasing of commercial properties. He works with various clients that include first-time home buyers, real estate investors, business owners, renters, and homeowners who are going through life transitions, ranging from divorce to personal bankruptcy. He can be reached at (613) 890-SOLD (7653). Website: miketheagent.ca.