Hi everyone, I hope you all doing well and staying healthy and happy in these trying times…
The past few months have dragged on into a seemingly endless day… What day? Who knows, they are all the same… So, while I usually send my newsletter out on a Sunday, well here it is, happy Monday!
This state of emergency has been going on long enough now that there are some very interesting metrics available concerning the impacts of COVID-19 on the real estate market in Ottawa, so I have provided a market update below that speaks more to these specific market anomalies.
I am excited to announce that, in order to better connect ourselves with the community in Ottawa that we are so proud to serve, my real estate team has developed a new identity deeply connected to an iconic Ottawa symbol of renewal and has rebranded as… The Tulip Team! More about this exciting change below, as well as information about a great contest we have underway currently.
In case you missed it, I also included a recap of the virtual tools I am using to work with buyers and sellers while socially distancing.
Impacts of COVID-19 on the Ottawa Market
- What I find most important to note in these charts is the way in which the new listings curve and the sold properties curve are in correlation with one another. This reflects the Sellers market we found ourselves in going into this crisis, where the number of homes sold was directly related to the number of homes available for sale, as buyers found themselves competing for a limited supply. Thus, while the number of people buying has dropped off during this crisis, so too have the properties available, so there has been a negligible impact on the balance of the market overall.
- Therefore, sale prices continue to increase and remain well above last year as would be expected, though potentially increasing at a slower pace than they would have had the crisis not arisen.
Home Sales in April 2020
700 freehold houses were sold in April 2020, with an average sale price of $521,694 showing an increase of 6.8% over April 2019.
Condo Sales in April 2020
213 condominium properties were sold in April 2020, with an average price of $327,813 showing as increase of 6.3% over April 2019.
To sum it all up…
- 1,201 new properties were listed for sale in April 2020 which is a 56.5% decrease compared to Apr 2019, bringing the total number of residential properties for sale to 1,920 a decrease of 48% from Apr of last year.
- During the month of April 2020, amid the lockdown in Ontario, members of the Ottawa Real Estate Board sold 913 residential properties, compared to 2,025 in Apr 2019, a decrease of 54.9% in the number of properties sold vs the previous year.
- It took an average of 26 days for properties of all types to sell in April 2020 which is 20 days shorter than the average in April 2019 and 7 days shorter than the month before, March 2020.
- Thus, while sales were cut in half so too were the number of new properties for sale, maintaining the balance of the market and the average price index of the market.
Virtual Tools at your service!