The Molly & Claude Team

The Molly & Claude Team Realtors Ottawa, Royal LePageTeam Realty

Ottawa Real Estate News Release (OREB)
Resale Market’s Adjustment and Correction Continues

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ottawa-real-estate-board-newsletter-presented-by-the-molly-&-claude-team-realtors

OTTAWA, November 3, 2022 –  Members of the Ottawa Real Estate Board sold 987 residential properties in October through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,670 in October 2021, a decrease of 41%. October’s sales included 758 in the residential-property class, down 40% from a year ago, and 229 in the condominium-property category, a decrease of 44% from October 2021. The five-year average for total unit sales in October is 1,554.

“After the volatility of the past two pandemic years, which was unsustainable, the market is correcting and adjusting,” says Penny Torontow, Ottawa Real Estate Board President. “The slowdown is compounded by Bank of Canada interest rate increases, which further exacerbates buyer hesitancy and weakens people’s purchasing power—especially first-time homebuyers.”

“Demand is still high, and with increasing inventory available, Buyers have more choices and time to shop for their new home. However, the ongoing speculation about where prices and interest rates are headed shakes consumer confidence and has made some prospective Buyers take a wait-and-see approach.”

“Sellers may be understandably concerned about market fluctuations, which have been more drastic lately,” she adds. “As with any major investment, a longer-term perspective is important. The significant year-over-year gains of the last two years were not sustainable. If you have owned your property for any length of time, your equity has increased significantly and will buffer price corrections. If you buy and sell in the same market, it is all relative.”

By the Numbers – Inventory & New Listings:

  • Months of Inventory for the residential-class properties has increased to 3.3 months from 1 month in 2021.
  • Months of Inventory for condominium-class properties has increased to 3 months from 1.2 months in 2021.
  • October’s new listings (2,047) were 4% higher than 2021 (1,960) and down 14% from September 2022 (2,371). The 5-year average for new listings in October is 1,971.
“Buyers and Sellers need to carefully analyze their own unique circumstances. No one can predict with absolute certainty what will happen next year, but in the highly employed and stable Ottawa market, real estate has been and continues to be a good investment over time,” says Torontow. “They don’t have a crystal ball, but mortgage brokers and REALTORS® have the education, expertise—and most importantly, the data—to help people make an informed decision for their specific situation.”

By the Numbers – Average Prices*:

  • The average sale price for a condominium-class property in October was $445,691, an increase of 9% from 2021.
  • The average sale price for a residential-class property was $677,873, decreasing 5% from a year ago.
  • With year-to-date average sale prices at $780,390 for residential units and $456,470 for condominiums, these values represent an 8% increase over 2021 for residential-class properties and a 9% increase for condominium-class properties.
REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 5,186 properties compared to 4,012 last year at this time.

* OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.

Canada Mortgage and Housing Corporation (CMHC) – Housing Starts / September 2022

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The Canadan Mortgage and Housing Corporation state that at first glance the September 2022 housing starts may look promising, but there’s much more to be done, experts say. The housing starts number rose slightly in September the CMHC reports that the situation is multi faceted and cannot easily be summarized in one number.

CREA The Canadian Real Estate Association – National Statistics

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On October 14 CREA released statistics for national home sales for September.

Highlights:

  • National home sales were down 3.9% on a month-over-month basis in September.
  • Actual (not seasonally adjusted) monthly activity came in 32.2% below September 2021.
  • The number of newly listed properties edged down 0.8% month-over-month.
  • The MLS® Home Price Index (HPI) declined by 1.4% month-over-month but was still up 3.3% year-over-year.
  • The actual (not seasonally adjusted) national average sale price posted a 6.6% year-over-year decline in September.
Click here for details.

Royal LePage forecast adjusted downward

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According to the Royal LePage House Price Survey the national aggregate home price set to end year modestly below 2021 following third-quarter price declines in the majority of Canadian markets.

Key highlights from the release include:

  • National aggregate home price for the final quarter of the year forecast at -0.5% compared to Q4 of 2021, giving up gains made early in 2022
  • National aggregate home price increased 3.3% year-over-year in third quarter of 2022; decreased 4.9% quarter-over-quarter
  • Prices remain well above pre-pandemic levels; Canada’s national aggregate home price increased 25.4% in Q3 over the same quarter in 2020, and 21.5% over the same quarter in 2019
  • 58 of the report’s 62 regional markets posted quarterly aggregate home price declines in Q3
  • Prices decline on a quarterly basis in Greater Montreal Area for the first time in more than five years as market activity drops, following trend set in greater regions of Toronto and Vancouver in Q2
  • Major markets in Atlantic Canada and the Prairies show modest quarterly price declines in Q3; Calgary and Edmonton markets faring better than other major cities
Details here. For regional summaries click here.

About Us

Molly Hoyle Sales Representative
Claude Jobin Représentant des ventes

E-Mail

claude@claudejobin.com




Phone / Address

Phone: 613.804.7979
1723 Carling Avenue
Ottawa, Ontario