OTTAWA -- Ottawa's real estate market stabilized in July, as the Ottawa Real Estate Board says summer activities lured buyers and sellers away from the market.

Meanwhile, the board is warning sellers that the multiple offer frenzy seen for buying homes during the spring is "no longer the norm."

The July report shows 1,724 residential properties sold in July, compared with 2,183 homes sold in July 2020. That is a decrease of 21 per cent from last summer.

"July’s unit sales followed the traditional cycle of the spring and summer markets, which tend to peak around April or May and then slow down as Buyers and Sellers turn their attention to their vacations and other outdoor recreational activities," said Debra Wright, president of the Ottawa Real Estate Board. The board notes the 1,724 homes sold in July is closer to the 2019 figure of 1,838 sales.

"Certainly, the marked decrease from last year’s July sales is due to the spring 2020 lockdown, which had shifted the 2020 resale market’s peak to the summer and fall months."

The average sale price for a residential class property was $685,426 last month, up 17 per cent from a year ago. The average sale price for a condominium-class property was $419,545 in July, up 17 per cent from July 2020.

"Following the same trend as sales, the month-to-month average prices decreased marginally by 4-6 per cent compared to June; however, this minor dip is consistent to what typically happens during the summer months," said Wright in a statement.

"Overall, average prices have increased considerably from 2020, and year-to-date values are holding steady. Still, sellers will need to keep in mind that the multiple offer frenzy experienced previously is no longer the norm, and they may need to have more realistic expectations when positioning their homes and settling on a listing price with their realtors."

The Ottawa Real Estate Board says the capital's housing stock increased in July, with residential properties up 19 per cent from 2020. Wright says the number of properties on the market in July was over the five-year average by approximately 114 units.

"Along with the price stabilizations, we hope this may indicate that Ottawa’s resale market is moving towards a more balanced state, which would be good for everyone," said Wright.