Rising interest rates continued to have an impact on Ottawa’s resale real estate market in June, with a 29% drop in the number of properties sold compared to June of 2021, the Ottawa Real Estate Board has reported.
In good news for buyers, inventory has increased, meaning there is more selection and fewer bidding wars than we saw over the past two years of low inventory, the Board says in a news release on sales activity for June.
While the number of transactions was down, average sale prices for the month were still above where they were a year ago.
The average sale price for a residential-class property in June was $772,861 _ an increase of 6% over the average price in June of 2021.
The average sale price for a condominium-class property, at $438,977, was up 1% over June of last year.
As for year-to-date averages, covering the first six months of the year, the average sale price for a residential-class property was $815,797, and the average sale price for a condo unit was $465,573. These prices are up 11% and 10% respectively over the first six months of 2021.
“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,” said Penny Torontow, President of the Ottawa Real Estate Board, in a statement.
She said the decline in total transactions can be attributed to rising mortgage rates and inflation. Some buyers have perhaps also been holding off to see where prices are going.
While average sale prices are still above where they were a year ago, Penny Torontow said “it’s no secret that price increases have become more modest in the last two months. There’s a new benchmark reality in Ottawa. 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.”
She added sellers or homeowners shouldn’t worry too much about Ottawa prices, as our market has traditionally been notably stable, thanks to the city’s strong economy and employment rates.
“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.”
In good news for buyers, there were 3,213 new listings in June, and inventory was up 38% over where it was in June of last year.
“We are moving, albeit gradually, towards the goal of a more balanced market,” she said.
The current market is starting to make things less stressful for buyers, who for the past two years have often experienced bidding wars and pressure to make fast decisions as properties were snapped up quickly.
“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,” Penny Torontow said.
“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!”
The Ottawa Real Estate Board cautions that while average sale prices for a specific month can be useful in establishing trends over time, they should not be used as an indicator that specific properties have increased or decreased in value. As with all cities, prices and price increases in Ottawa can vary from neighbourhood to neighbourhood.
If you’re considering buying or selling in the Ottawa area, I’d be happy to chat with you about the local market and conditions in your area.
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