Local home resale market remains robust in May.
June 7, 2004 - The selling price of an older home in Ottawa remains sky high, according to the latest data from the local real estate board, but homebuyers are benefiting from a broader inventory as the market balances out.
The Ottawa Real Estate Board reported Monday that 1,642 residential properties sold through the universally-used Multiple Listing Service in May, setting a new record for the month.
The total was up by 9.8 per cent from the 1,479 sales reported in May 2003 and by 9.1 per cent from 1,488 in April of this year.
On the year to date, the resale market continues to gain ground, with 6,065 units having changed hands so far, up by almost 11 per cent from last year.
"The number of properties for sale ... continues to increase, providing more choice for buyers and leading a to a more balanced market," OREB president Glenda Brindle said in the report.
"We also note that while the average price has increased, approximately 41 per cent of properties sold ... were priced below $200,000."
The average price of a home sold through the MLS last month was $242,166, up about nine per cent from $222,221 in May 2003.
The traditional definition of "affordable" is housing priced at $150,000 and under. This is considered to be the maximum price within reach of the 40 per cent of the Canadian population with a household income of $47,000 or less.
In Ottawa, where the average dual-income family brings in about 28-per-cent more income than the national average, fewer and fewer homes price in that "affordable" range.
In May, only 15.9 per cent of the homes sold in Ottawa through the MLS priced under $150,000. The majority were condominium-type units.
Local homebuilders are banking on greater demand for more affordable housing, according to a separate report issued Monday morning by Statistics Canada.
Statscan reported that building permits for cheaper multiple-type dwelling units such as condo apartments and rowhouses shot up in April.
About $97.92 million worth of residential building permits were taken out in Ottawa in April, up by 11.4 per cent from March. Permits for single-family homes were up by 8.2 per cent, while permits for multiples were up by 16 per cent.
On the year to date, demand for singles is actually down, by 2.4 per cent, while the value of permits for multiple housing types is up by 17.3 per cent.
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