Ottawa's real estate market remained hot while the temperatures started to cool in August.
The Ottawa Real Estate Board reports a 17 per cent increase in residential properties sold across Ottawa last month, while the average sale price jumped 22 per cent.
"August's resale numbers were undoubtedly driven by the considerable increase in new listings that came onto the market in both July and August," said Deb Burgoyne, Ottawa Real Estate Board President.
"There were at least 300 more residential and 175 more condo listings added to inventory than we saw last year at this time. In fact, we have not seen new listing numbers like this since August 2015."
Members of the Ottawa Real Estate Board sold 2,017 residential properties in August, compared with 1,725 in August 2019.
The average sale price for a condominium-class property was $383,640 in August, an increase of 24 per cent from this time last year. The average sale price of a residential-class property was up 22 per cent to $566,291 last month.
"A culmination of factors has been playing into the price increases in Ottawa's resale market. Certainly, multiple offers are a dominant element," said Burgoyne.
"The reason that we have so many offers highlights the number of active buyers in the market due to a variety of dynamics – such as record low mortgage rates, recently announced decreased debt/equity thresholds, migrating buyers coming from larger markets who may have received high returns on their home sales, etc."
CTV News Ottawa reported last month a home in Orleans sold for $252,000 over the asking price.
Burgoyne admits this is an "extremely challenging market", especially for buyers.
"Many are experiencing what we call 'buyer burnout,' having placed many offers without success," said Burgoyne in a statement on Thursday.
"I suspect that prices are not going to come down, nor is activity going to slow down in the near future. Whether you are on the buying or selling side of a transaction, this is not the kind of market to navigate without guidance."