March sales back to normal after HST-fueled 2010

Members of the Ottawa Real Estate Board sold 1,232 residential properties in March through the Board’s Multiple Listing Service® system compared with 1,495 in March 2010, a decrease of 17.6 per cent. The five-year average for home sales in March is 1,256. Of March’s sales, 296 were in the condominium property class and 936 were in the residential class.

“As you can see, last month we experienced a typical average March in terms of resale home sales. That certainly was not so last year for the same period. The effects of the introduction of the Harmonized Sales Tax in July were already being felt as more buyers leapt into the market trying to avoid taxes on the services associated with a real estate transaction,” said Board President Joanne Tibbles. “Years in which there are unusual market forces, such as the HST in 2010, tend to create skewed comparisons with subsequent years. Despite the lower volume of units sold, the average price continues to rise slightly, indicating that we are still in a healthy balanced market. Ottawa’s housing market is actively moving along as it typically does in early spring,” Tibbles added.

The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $346,148, an increase of 4.9 per cent over March 2010. The average sale price for a condominium-class property was $253,763, an increase of 6.5 per cent over March 2010. The average sale price of a residential-class property was $375,364, an increase of 5.6 per cent over March 2010.

With particular reference to two storey residential homes, MLS statistics for March 2011 show a total of 564 sales of homes while in March 2010 the total was 675. March 2011’s average sale price was $393,319, an increase of 6.4 per cent over the previous March. Of course these figures are averages for the entire city.  If you would like more specific statistical information, just call me.

Predictably with the onset of spring the market is really busy. The mortgage interest rates have just gone up a touch but are unlikely to have a significant effect on buyers so I remain optimistic for a lively resale market.

Don’t hesitate to call me for an informal chat if you have any questions.