Some of the heat generated by Toronto’s sweltering real estate market is radiating east into Ottawa, as home sales in the capital continue to break records.
The latest data from the Ottawa Real Estate Board (OREB) shows nearly 1,500 residential properties changed hands in August—a whopping 16.4 per cent increase from the same month last year.
“This has been the best August ever for OREB members, blowing the average for August sales out of the water,” said Shane Silva, president of the OREB, in a news release. “This is atypical of August when units sold normally start to decline approaching the fall.”
Silva said two-storey homes and bungalows continue to drive the bulk of sales, most in the $300,000 to $400,000 range.
Prices, too, are climbing up 4.2 per cent year-over-year. The average sale price of a residential property in Ottawa now sits at $369,055, but that number could rise even higher as the volume of listings dwindles amid increased demand.
“Units listed in both residential and condominium property classes continue to decline, as well as active listings at end of the month,” said Silva. “These numbers suggest that buyers have less options when looking to purchase, with the potential of entering into a seller’s market soon.”
2016 could prove to be a banner year for home sales in the National Capital Region. April, June, July and August all posted increases throughout the past year, with June registering as the best month ever for sales in the region.
Ottawa could be poised for further growth as pressure mounts on provincial and municipal lawmakers in Toronto to impose measures to cool the city’s red-hot—and increasingly unaffordable—real estate market, forcing investors to look for properties elsewhere.