By Maureen McEwan
The Ottawa Real Estate Board (OREB) reported that a “profound slowdown” was unfolding in the National Capital Region’s market during the summer.
On Aug. 4, the Ottawa Real Estate Board (OREB) reported 1,110 residential properties sold in July through the board’s Multiple Listing Service (MLS) System, compared to 1,718 last July, marking a decrease of 35 per cent. The five-year average for July’s total sales is 1,691.
“We are witnessing a profound slowdown in Ottawa’s resale market. July’s numbers reveal that [buyers] are indeed putting on the brakes more heavily than what is typically expected during the mid-summer sales dip. Aggressive interest rate increases are surely impacting the decision to buy at the moment as well as other factors,” stated OREB President Penny Torontow in the release.
“But there is a silver lining: with more properties continually being added to inventory, we are on the cusp of returning to a balanced market, and that is good news,” she added.
In July, 2,338 new listings were added to the real estate stock, which the OREB president confirmed is “on par” with the five-year average and is five per cent lower than July 2021.
“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,” Torontow stated.
On average, the sale price for a condominium property in July was $425,694, an increase of one per cent compared to July last year.
And the average sale price for a residential property was $716,354 in July, an increase of five per cent when compared to July 2021.
The year-to-date average sale prices were $805,238 for residential properties, an 11 per cent increase over 2021, and $461,557 for condominiums, a 9 per cent increase over 2021, as reported by the OREB Aug. 4.
“The double-digit average price increases that we saw in the past couple of years right up until the early spring have now morphed into single-digit increases, which aligns more with our traditional stable year-over-year price growth,” stated Torontow. “However, it is important to point out that average prices tally the entire spectrum of home sales across the city and region. If you look from neighbourhood to neighbourhood, there are so many differing characteristics and attributes, price increases will certainly fluctuate depending on where you live.”
The OREB president suggests that sellers remain patient, as buyers may take more time given the current market conditions.
“If you are selling your home, now is the time to be patient as days on market return to more normal [time frames]. There are still many [buyers] out there, but with more choice, they have less pressure and may take their time,” Torontow stated. “Even though interest rates are still quite reasonable from a historical perspective, consumers are adjusting to this new reality. The rising cost of all goods means people need time to evaluate and adapt their mindsets.”
Around 3,800 registered real-estate brokers and salespeople in the National Capital Region are members of the OREB, according to the organization’s website. To learn more, visit oreb.ca