Ottawa Business Journal
Double-digit declines again for resale market in February
By Krystle Chow, Ottawa Business Journal Staff
Wed, Mar 4, 2009 10:00 AM EST
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Sales of existing homes plummeted by nearly 20 per cent in February as both the freehold and multiple-unit segments reported double-digit declines, but the Ottawa Real Estate Board stressed that the local market is still "balanced," especially when compared to the rest of the country.
Housing sales fell 19.7 per cent year-over-year to 787 units, with the average price tag for all residential units sold declining 2.9 per cent to $273,719.
The condominium market was especially hard-hit during the month, with sales dropping 23.4 per cent to 164 units, although the single-family segment also had a substantial decline of 18.7 per cent year-over-year, to 623 units.
"The fact is, although sales and prices have both declined here in Ottawa, they have remained relatively steady when compared with the sharp decreases seen in other parts of Canada," said board president Rick Snell in a statement.
He echoed a Wednesday morning
report that indicated favourable mortgage rates and low housing prices are encouraging Canadians to purchase homes sooner rather than later, but argued that it's not just a buyers' market right now.
"Ottawa's resale housing market is balanced, which offers opportunities for both sellers and buyers, especially first-time buyers," he said.
The average sale price for existing single-family homes took a bigger hit in February than did the mean price for the less costly condominium segment, with freehold units selling for an average of $292,031 during the month, down 3.5 per cent from the same time a year earlier.
The multiple-unit category – which last month recorded a huge five-per-cent drop in average sale prices – had a less drastic 1.6-per-cent decrease in the average price of each home sold, to $204,157.