New-home sales up from year ago but below city’s 10-year average

The slow start to spring failed to put a damper on home sales in March, according to both a newhome market report and the Ottawa Real Estate Board.

Despite persistently cool temperatures, new-home sales for the month jumped 4.4 per cent over March 2014 to reach 365, says the latest report from industry analyst PMA Brethour Realty Group. That was up 21.9 per cent from February, suggesting the busy spring home selling season is not far off.

“Sales in March were just slightly higher than expected considering the extreme winter weather,” Patrick Meeds, who heads PMA’s new home division, says in an email. “With the recent late switch from our extended deep freeze winter to warm spring weather, we expect a strong April new home market as purchasers come out in larger numbers.”

Although sales are still low compared with the 10-year average (off 20 per cent for the year to date), Meeds says they’re tracking higher than last year.

He notes that sales for townhomes and condo apartments “continue to improve as we see more indications of the first-time buyer entering the housing market. We expect to see this continue next month.”

Mattamy and Minto are dominating the market share, he says, and with Minto opening Quinn’s Pointe in Barrhaven this week and Mattamy opening Summerside West in Orléans, “we expect even higher numbers from these two as we move into May.”

Resale home sales saw a modest two-per-cent increase over March 2014 to 1,208 homes sold, or more than 40 per cent higher than February sales.

“Indications of a fast-approaching spring market were noted in February, and these numbers are proof that Ottawa is indeed experiencing an upswing in sales,” OREB president David Oikle says in a release.

March resale sales included 228 condominiums (averaging $251,666) and 980 other homes (averaging $387,141). In both cases, the average price is unchanged from March 2014.

“So far, the 2015 resale market in Ottawa remains steady and strong,” Oikle says.

Meanwhile, housing starts slid, trending at 4,600 units in March compared with 5,175 in February, according to Canada Mortgage and Housing Corp. (CMHC). The trend is a six-month average that is adjusted each month to remove seasonal ups and downs to offer a more accurate month-to-month comparison while projecting what the starts will be for the year.

“Starts for all dwelling types trended lower for the fourth consecutive month,” says CMHC market analyst Anne-Marie Shaker in a release. “Elevated condominium starts in the preceding three years are gradually translating into higher inventories of completed and unsold units, which has led builders to reduce apartment starts this year. In addition, weak employment is keeping starts activity at bay.”