All eyes are on the slowed down market as it adjusts
In October, buyers proved that they are still moving rather slowly when it comes to making moves on the market, on account of the increased interest rate and the subsequent speculation on home prices. As the Ottawa Real Estate Board pointed out, the overall inflation across the board is impacting the cost of living, which further impacts the ability to buy. Not to mention, stress tests cause even more stress stacked on top of high interest rates, particularly for first-time homebuyers.
On the other hand, we continue to see more listings entering the market, which is a good thing. Just as we are recovering from the impacts of the pandemic, so is the market—as it endeavours to find its footing in what—despite being uncertain—is less of a ‘pressure cooker’ environment. It continues to bring us towards that balanced state we have so missed, affording both buyers and sellers alike more time before making their decisions.
While neighbourhoods vary, we are seeing prices stabilize month over month, but looking at the price trends over the year, a steady price increase is still ever-present, characteristic of the Ottawa market. As such, a reminder to buyers: if you’re looking to make a long-term purchase, don’t get too caught up in the short-term changes. The market is fluid, and they won’t matter as much as time goes on.
So the million dollar question, is it a bad time to buy or to sell? Not necessarily. We know the market is tricky and these decisions can be tough—but we are more than happy to guide you through it with our honest and professional assessment of not just the market itself, but also within the context of your unique situation. And we’ll always do it with your best interests top of mind. Reach out to us at info@goodstory.ca!
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Resale Market’s Adjustment and Correction Continues
NUMBERS OCTOBER 2022
Properties sold:
987 residential properties sold in October 2022
- (compared with 1,670 in October 2021, decrease of 41%)
- Five-year avg. for total unit sales in October: 1,554
Sales breakdown:
758 in residential-property class (down 40% from a year ago)
229 in the condo class (down 44% from a year ago)
Avg. sale price:
Residential: $677,873 (-5% from 2021)
- Year-to-date avg.: $780,390 (8% increase over 2021)
Condo: $445,691(+9% from a year ago)
- Year-to-date avg.: $456,470 (9% increase over 2021)
*Note that varied pricing and conditions in different neighbourhoods affect average sale prices
New listings:
2,047 properties were listed in October
- 4% higher than new listings in Oct. 2021 (1,960) and 14% lower than new listings in September 2022 (2,371)
- The 5-year average for new listings in October is 1,971
- 3.3 months of inventory for residential-class properties (increase from 1 month back in 2021)
- 3 months inventory for condo-class properties (increase from 1.2 months back in 2021)
Rentals:
Since the beginning of the year 5,186 properties have been rented out with the assistance of realtors compared to 4,012 last year at this time.
