Ottawa condo resales continued to bounce back in July after a downward trend in recent years due to overbuilding.
Ottawa Real Estate Board says that 1,530 homes were sold through its MLS in July, up 2.7% from a year earlier and remaining above the 5-year average of 1,446.
Board president Rick Eisert says that condo sales bolstered the market and have been trending higher since February.
“Some owners who had difficulty selling their condos rented them instead, thereby decreasing supply,” he explained. “Now as rental leases are coming due, combined with evidence of stronger condo sales, these owners are placing these units back on the market for sale.
Meanwhile, residential sales have remained virtually the same in comparison to this time last year.”
There were 332 condos and 1,198 residential class sales last month but inventory levels remain low by historic standards but Eisert says the choice for buyers is decent, especially in the condo sector.
Average sale price for residential-class homes was up 5.3% year-over-year in July to $420,335 while condos gained 2.8% to $267,241.
“Ottawa buyers are beginning to see prices climb in certain areas of the Ottawa market, so they are getting in on the market now,” says Eisert. “We continue to see an increase in the number of ‘lifestyle’ properties sold – the $750+ price range. As prices and the number of units sold in higher-end price ranges increase, so does the total sales volume. The condo market sales volume is up 32 per cent over last year, while the residential market is up by 16.5 per cent.”
More market update: