April new home sales soared despite flood woes, poor weather

Despite the distractions of a winter that was reluctant to end and a flooding Ottawa River that led to a state of emergency being declared in the city, Ottawa new home sales soared in April.

According to the latest report prepared by PMA Brethour Realty Group for the Greater Ottawa Home Builders’ Association, April new homes sales hit 620, a jump of 32 per cent compared to the 467 sales in April 2018. That was also 28-per-cent higher than the five-year average for the month.

“There were quite a few significant product releases last month, which helped boost sales to well above April 2018 numbers,” says Cheryl Rice, who is president of PMA’s Ottawa office.

One of those releases was Glenview Homes’ launch of Heirloom, which is an enclave of single-family homes in Barrhaven. The initial lots Glenview released were snapped up within just a few hours on opening day, with buyers lining up overnight and early in the morning to be first in line.

Benefiting from resale woes

The reaction at Heirloom is just one example of how the new home market continues to benefit from a prolonged low inventory in resale homes on the market, which is prompting some buyers to shift their focus to new homes, says Rice.

“A lot of our buyers have been in the market for a while,” notes Glenview managing director Jake Shabinsky. “One of our very first buyers was just outbid on a resale and they’re just sick of getting stuck in bidding wars and being unsuccessful.”

Heirloom is also an example of what proved most popular in April, namely single-family homes — which captured 51 per cent of the market share — and the south end, which scooped up 48 per cent of market share.

Rice points to big releases of singles in Riverside South as a big factor in the strong showing in April, noting that Riverside South is “touted as being one of Ottawa’s preferred communities.”

Forecasting the year

So, does the above-average showing so far this year mean we’re on track for a strong finish?

“Although we are well ahead of last year’s new home sales, there’s no reason not to expect the usual slowdowns as buyers take summer vacations, get their kids ready for school and prepare for the holidays,” says Rice.

“However, with a big jump on sales so early in the year, come December we expect 2019 new home sales to be quite good. July will be the tell-all month as, statistically, it will give us an indication of what annual new home sales are going to be, compared to previous years.”

Low inventory hampers April resale market