The July market brings us a step closer to what was once a distant dream: a balanced market
In recent times, the word on the street has been about how the real estate market is dramatically slowing down, but we want to take a moment to highlight and understand the context of this phenomenon and what it really means.
Here’s the deal
While there’s no denying sales have slowed, it’s important to note that they’re slowing from a state of hyperactivity. The COVID-19 pandemic put the market into overdrive and brought us further and further away from having a balanced market. Now, we’re starting to see the market gradually return to its usual state, albeit with increased interest rates. However, the President of the Ottawa Real Estate Board, Penny Torontow points out that interest rates are still reasonable from a historical perspective—and as with the rising cost of all goods, consumers simply need time to adjust to this new reality.
And now the good news
A slower market means more properties are available and inventory is in recovery mode. A minimum of 4 months supply is needed for a balanced market and currently, for residential-class properties, there is around 2.9 months worth of inventory, while for condo-class properties it’s around 2.5 months. A balanced market is not so far away after all.
We’re also seeing average sale prices transition to a more steady state growth—though notably, they are subjective to various neighbourhoods.
A note to sellers
Patience is key as the market and buyers adjust to these changes. With a calmer market, buyers are granted more time for decision-making but it doesn’t mean they aren’t still looking to buy.
We’re always here to help. Whether you’re a buyer or a seller, we care about providing you with top quality advice, as well as the most support possible, as you make these big decisions. Reach out to info@goodstory.ca!
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Related links:
- The Ottawa Real Estate Board: Residential Resale Slowdown Begins A Shift Towards Balance
- CTV News: Ottawa home sales down 35 per cent in July
- Ottawa Citizen: ‘The craziness is over’: Ottawa’s real estate market inches toward stability, but home prices still increasing
