Resale Market’s Adjustment and Correction Continues

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.”

“July saw 2,338 new listings added to the housing stock, which is on par with the 5-yr average and 5% lower than last year at this time. Our inventory for residential-class properties is currently around 2.9 months and 2.5 months for condominiums. A market is considered balanced with at least four months of supply, so we are well on our way to that paradigm.”

The average sale price for a condominium-class property in July was $425,694, an increase of 1 per cent from 2021, while the average sale price for a residential-class property was $716,354, increasing 5 per cent from a year ago. With year-to-date average sale prices at $805,238 for residential and $461,557 for condominiums, these values represent an 11 per cent and 9 percent increase over 2021, respectively.*

 

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.

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.

“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.”

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.

The Ottawa Real Estate Board

Average Sale Price

We are very fortunate to have one of the most stable markets in the country. Ottawa continues to provide homeowners excellent growth on their real estate investment. Here’s a look back at the Resale Home Sales in the Ottawa Region from 1980 to 2021.

Ottawa Real Estate Board Average Sale Price 1980 – 2021

Year Average Sale Price Percent Change
1980 $ 62.748 1.4
1981 $ 64.896 3.4
1982 $ 71.080 9.5
1983 $ 86.245 21.3
1984 $102.084 18.4
1985 $107.306 5.1
1986 $111.643 4.0
1987 $119.612 7.1
1988 $128.434 7.4
1989 $137.455 7.0
1990 $141.438 2.9
1991 $143.361 1.4
1992 $143.868 0.4
1993 $148.129 3.0
1994 $147.543 -0.4
1995 $143.193 -2.9
1996 $140.513 -1.9
1997 $143.873 2.4
1998 $143.953 0.1
1999 $149.650 4.0
2000 $159.511 6.6
2001 $175.701 10.3
2002 $200.271 14.1
2003 $218.692 9.0
2004 $235.678 7.7
2005 $244.531 3.8
2006 $255.889 4.7
2007 $272.618 6.5
2008 $289.766 6.3
2009 $303.888 4.9
2010 $327.225 7.7
2011 $343.701 5.2
2012 $351.792 2.3
2013 $357.346 1.6
2014 $361.712 1.2
2015 $367.632 1.7
2016 $371.901 1.2
2017 $392.474 5.5
2018 $407.571 3.8
2019 $441.693 8.4
2020 $529.675 19.5
2021 $645.976 21.9