Ottawa Real Estate Statistics – June 2022
Ottawa Real Estate Newsletter – July 2022
Ottawa Real Estate News Release (OREB)
Residential Resale Market’s Shifting Benchmark Reality
OTTAWA, July 6, 2022 –
Members of the Ottawa Real Estate Board sold 1,508 residential properties in June through the Board’s Multiple Listing Service® System, compared with 2,122 in June 2021, a decrease of 29 per cent. June’s sales included 1,138 in the residential-property class, down 31 per cent from a year ago, and 370 in the condominium-property category, a decrease of 23 per cent from June 2021. The five-year average for total unit sales in June is 1,966.
“After the frenzy of the past two years, we are witnessing Ottawa’s resale market normalize in 2022 and shift towards the more traditional seasonal ebb and flow cycle. While June transactions do typically taper as many look towards their summer holidays, last month’s sales were at a slower pace than we have seen in well over a decade,” states Ottawa Real Estate Board President Penny Torontow.
“We can likely attribute the decrease in unit sales to economic factors such as rising interest rates and cost of living/inflation. Other dynamics could include Buyer fatigue combined with a wait-and-see approach towards home prices, lack of confidence amongst consumers, and perhaps the uncertainty surrounding back-to-work arrangements as a long commute with rocketing gas prices will certainly affect decisions about where to live,” she adds.
The average sale price for a condominium-class property in June was $438,977, an increase of 1 per cent from 2021, while the average sale price for a residential-class property was $772,861, increasing 6 per cent from a year ago. With year-to-date average sale prices at $815,797 for residential and $465,573 for condominiums, these values represent an 11 per cent and 10 percent increase over 2021, respectively.*
“It’s no secret that price increases have become more modest in the last two months–there’s a new benchmark reality in Ottawa. While our average price statistics provide an overall picture, as the market settles, there will be adjustment differences in various pockets of the city. For example, what happens in Westboro will not likely mirror Findlay Creek,” advises Torontow.
“But even as prices fluctuate, historically, real estate in Ottawa has always been and will continue to be stable and dependable in the long term. We aren’t likely to ever experience the significant dips that other regions may see. Prices won’t fall out; they are prone to level off to the reasonable rates of increase that we have historically experienced.”
“With an influx of 3,213 new listings in June, we are moving (albeit gradually) towards the goal of a more balanced market. Residential inventory has increased by 38% over last year at this time and is sitting at an approximate 1.9 months’ supply currently. Condominium housing stock has risen 14% to a 1.6 months’ supply for that property class. Once government-pledged supply measures are enacted, we are optimistic that goal is within reach.”
“Buyers, if you have been waiting on the sidelines, this may be an optimal time to venture back into your home search. There is more selection, fewer bidding wars, and less pressure to make a warp-speed decision. As for Sellers, your neighbourhood has its own characteristics and attributes that should weigh into the calculation of your property’s value. Contact a professional REALTOR® who has their hand on the pulse of Ottawa’s shifting real estate market today!”
REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members assisted clients with renting 2,919 properties compared to 2,252 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.
May home sales down 22% since last year, 9% from April: CREA
The Ottawa Business Journal reports on the latest Canadian Real Estate Association (CREA) statistics and the effect of the rising mortgage rates.
Buying a home in a cooling market
In the last few weeks the real estate market has shifted. As a result, there can actually be more buyers actively looking as some buyers may have shied away from the red hot market as they were not interested in overpaying as the result of a biding war.
Of course from the selling perspective, presentation, which has always been important is thus more important now. Plus, it may take a bit more time to sell your home. In a more balanced real estate market sellers must be realistic about the value of their home. Remember $100,000 over asking was not representative of the value of that home it spoke to the despair of the buyer. More here – yes, a Toronto Realtor’s contribution but he speaks more of the change in the market rather than specifics of the Toronto market.
Ottawa Real Estate Statistics – May 2022
Ottawa Real Estate Newsletter – June 2022
Ottawa Real Estate News Release (OREB)
Ottawa’s May Residential Resales Underperform Expectations
OTTAWA, June 3, 2022 – Members of the Ottawa Real Estate Board sold 1,846 residential properties in May through the Board’s Multiple Listing Service® System, compared with 2,285 in May 2021, a decrease of 19 per cent. May’s sales included 1,384 in the residential-property class, down 22 per cent from a year ago, and 462 in the condominium-property category, a decrease of 11 per cent from May 2021. The five-year average for total unit sales in May is 2,031.
“With year-over-year resales declining in March and April, and now with this downward trend continuing into May, traditionally the highest performing month for resales, it is quite clear that Ottawa’s resale market is shifting away from the blazing pace of 2021,” states Ottawa Real Estate Board President Penny Torontow. “And if rising interest rates, cost of living, and inflation aren’t enough factors to cause a pullback, the powerful and deadly storm that brought our city to its knees last month has justifiably impacted the market as well.”
“Our data shows a sharp decline in new listings with a corresponding increase in cancelled/suspended listings on the MLS® System in the period following the storm. Overall, in May, however, there were 3,120 properties that entered the market. This is on par with last May and is 5% over the 5-year average. The result is an 18% increase in residential-class inventory. Meanwhile, there was a slight decline (0.4%) in condominium inventory, but this is not surprising since they have likely become an entry point for many first-time homebuyers due to the affordable price point.”
The average sale price for a condominium-class property in May was $472,920, an increase of 11 per cent from 2021, while the average sale price for a residential-class property was $802,393, increasing 8 per cent from a year ago. With year-to-date average sale prices at $824,276 for residential and $470,353 for condominiums, these values represent a 12 per cent increase over 2021 for both property classes.*
“Average prices, while still higher than 2021, are showing signs of adjusting to the pace of the market with a month-over-month decrease of 2% in both property classes. In April, we also saw a decline of 1-3%. In contrast, January to March experienced month-to-month increases ranging from 2% to 12%. This may be good news for Buyers, including the fact that the months of inventory have increased to 1.2 for residential and 1 month for condominiums. We are still a far cry away from a balanced market, but it finally seems to be moving in the right direction,” Torontow suggests.
“Additionally, another statistic that we see increasing is the cumulative days on market (CDOM), which is now 14 days, increasing from 11 days last May. CDOMs are typically between 30-60 days in a balanced market, and usually closer to that one-month mark in Ottawa. I mention this because we don’t want Sellers to panic if their homes aren’t selling as quickly as perhaps their neighbours’ properties did. Buyers will also have a little more breathing room if this trend continues.”
“But at the end of the day, each property for sale has its own hyper-local market factors (location, condition, other properties for sale in the same neighbourhood, etc.) that will affect the final sale price. If you want to know the most accurate price point to sell your home or what is the true market value of a home you are interested in, a licensed professional REALTOR® has the education and the experience with access to the most current market statistics and property information, to guide you into making the optimal decision for you and your budget.”
REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members assisted clients with renting 2,320 properties compared to 1,837 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.
Ottawa housing market to cool in 2022 but prices will rise: CMHC
CTV News reports in a recent blog post that the Ottawa Real Estate market will cool in 2022.
Factors influencing this cooldown:
- interest rate hikes;
- with another one to come on June 1;
- inflation rate at 6.8%;
- partly caused by the effect of the war in Ukraine;
- post pandemic return to normal life creating additional expenses;
- effect of the new mortgage rules.
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