A record-breaking December closes a strong 2015 for Ottawa’s Real Estate Market
As we begin a new year in Ottawa Real Estate, I’d like to offer everyone best wishes for a happy and healthy 2016. And I’m happy to report a lot of good news to celebrate: the numbers have been tallied for the Ottawa market for December of 2015, and there was positive news on many fronts, including record-breaking year-end sales.
The Ottawa Real Estate Board reports that sales for December of 2015 set a new record for the month of December, and were also above the five-year average for the month.
Shane Silva, the new President of Ottawa Real Estate Board, adds, “average residential sale prices are up slightly over last year, which is great for the Ottawa market. All combined, these indicators point to a stable real estate market.”
The board reports that its members sold a record-breaking 703 residential properties in December of 2015 through the Multiple Listing Service System, compared with 638 in December of 2014. That’s an increase of 10.2 per cent. The five-year average for December sales is 653.
Total sales for residential and condominium units in 2015 were also up over 2014. In 2015, members of the board sold 14,658 properties. That’s up from 13,919 in 2014, or an increase of 5.3 per cent. The Board also reports that when considered separately, sales of residential and condo unit each exceeded the number of units sold in 2014 in those categories.
Looking back at sales trends through 2015, Shane Silva says “we started the year off with extreme cold temperatures in the first quarter of the year, but that didn’t stop homebuyers. We saw the busy spring selling season pick up as early as March and continue well throughout the summer, with a small dip in July, followed by record-breaking sale numbers in September. Three months later, December broke the record for the highest number of residential and condo properties sold.” (The 703 units sold in December topped the previous record for the month, set in 2011, when 699 properties sold.)
Looking more closely at the sales numbers for December, the Board says the 703 units included 543 in the residential property class and 160 in the condo property class. The board says “condominium property” refers to any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The “residential property” class includes all other residential properties.
In terms of sales prices for December of 2015, the Board reports that the average sales price of a residential-class property in the Ottawa area was $386,961. That’s an increase of 5.5 per cent over the average price in December of 2014.
The average sale price for a condominium-class property sold in December was $250,393. That’s a decrease of 7.5 per cent over the average price in December 2014.
Looking at the numbers for 2015, the Board says the average residential sale price in 2015 was $391,940. That’s an increase of 1.9 per cent over the average price 2014. The average condominium sale price in 2015 in Ottawa was $259,691, or a decrease of 1.5 per cent over 2014. Keep in mind, as the Board always cautions, “average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.”
In terms of numbers of properties on the market over the past year, Shane Silva says “the listing inventory for both residential and condos trended higher all year, showing signs of tapering off in October. Increased inventory levels contributed to the market favouring buyers for much of the year.
But Shane Silva adds that “as the inventory levelled out in the fall, we moved into more balanced conditions. Cumulative days on market increased to 109 days in December, while the average for the year comes in at 86 days.”
Looking at the price ranges that sold most frequently, the Board reports that throughout 2015, the hottest segments of the Ottawa market were properties sold in the $300,000 to $400,000 price range, representing 31.6 per cent of the year’s sales. That’s followed by units in the $200,000 to $300,000 range, representing 26.2 per cent of the year’s sales.”
If you’re interested in buying or selling in 2016, I’d be happy to hear from you. We can chat about the local market and what buyers and sellers can expect in coming months.
If you are considering selling in the spring or summer, it’s not too early to contact me now and get the preparations started. After I visit, we can draw up a plan for any improvements or touch-ups to be worked on in coming months, and ensure that everything is ready for to list the property for the busy spring-summer market.
You can reach me through my website, at www.nancybenson.com, or by calling me at 613-747-4747. Best wishes for 2016!
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