Home sales surging higher, up nearly 20% over last year
It wasn’t just temperatures that got hot in May — new home sales in Ottawa were on fire as well, according to the latest report from industry analyst PMA Brethour Realty Group.
The new home market surged almost 30 per cent higher than the same month a year ago, hitting 441 sales — or 100 more than May 2015.
The results were down a bit from April, which saw 477 sales, but that slip is typical as buyers start to ease off when summer approaches. And overall for the year to date, sales are up 19.6 per cent over last year (1,968 versus 1,644).
“If this pace of growth continues, the Ottawa home market could approach the 10-year average of 4,842 by the end of this year,” says PMA’s new Ottawa president, Cheryl Rice. “This is exciting because we have not seen a similar level of sales since 2011.”
Builders Minto and Mattamy continued their 1-2 dance jockeying for top spot in market share, with Mattamy coming out slightly ahead in May at 21.8 per cent.
And a special new home model tour put on mid-month by the Greater Ottawa Home Builders’ Association was “highly successful” in increasing builder brand awareness, she says. “While it did not directly translate into sales for May, we expect it will produce sales over the balance of the year.”
On the resale front, sales were steadier, with virtually the same number of homes sold this May as last – 1,921 versus 1,923 for a 0.1-per-cent dip, according to the Ottawa Real Estate Board.
“As the weather warmed, the Ottawa resale market continued its steady pace upwards, continuing an above-average trend for the month of May,” board president Shane Silva says in a release. “Units sold are up 207 since April.”
May sales included 307 condos, averaging $264,801 (down 0.8 per cent over May 2015), and 1,614 other homes, averaging $406,063 (down 1.3 per cent). The hottest segments of the market were sales between $300,000 and $400,000 and homes that were two-storeys or bungalows.
“With the number of sales since the beginning of the year on a steady incline, coupled with increased inventory, Ottawa is riding a strong and steady spring market,” says Silva.