GOOD NEWS FOR BUYERS: Ottawa’s resale market now balanced.
If you’re planning to buy property in Ottawa, there’s some good news in the latest sales report from the Ottawa Real Estate Board.
While interest rates have been rising in recent months, you’ll find that average sale prices are also lower than they were a year ago.
The average sale price for a condominium-class property in November, at $415,533, was down 4% from November of 2021.
The average sale price for a residential-class property, at $680,031, was down 5% from a year ago. Other Canadian markets have seen similar or larger adjustments in response to rising rates.
In other good news for buyers, there are also more properties on the Ottawa market.
After many months in which inventory was low and bidding wars were common, Ottawa has officially shifted into a balanced market, the Ottawa Real Estate Board reports.
In November, there were 1,598 new listings, up 12% from November of last year and above the five-year average for the month.
The Board says the number of months worth of inventory (the time it would take to sell all properties if no new listings were added) has increased to 3.5 months for residential-class properties (up from just 0.9 months’ worth in November of last year) and 3.4 months worth for condominium-class properties (up from 1.1 months in November, 2021).
Properties in November were on the market for an average of 30 days, which is more typical of Ottawa’s market than what we saw during the pandemic, when properties were sometimes selling in a few days.
“With nearly four months of inventory and an average 30 days on market, Ottawa now has a balanced resale market, slightly tipping toward the buyers,” Penny Torontow, President of the Ottawa Board, in a statement.
If you’re a buyer, this gives you more breathing room during your search, without the pressure that many buyers felt during the pandemic months of making quick decisions.
It also means buyers can include typical conditions with their offers, such as a pre-home inspection, and sellers will be more likely to accept those conditions.
If you are considering selling property, Penny Torontow says, you are “advised to work with a Realtor who has hyper-local knowledge about specific neighbourhoods, appropriate price points and ideal timing.”
Sellers should remember, as she also adds, that “prices are adjusting, but real estate is a long-term investment.”
Even with the slight corrections in average sale price since November of last year, for example, if you look at where prices were two years ago, you’ll still see healthy gains.
At $680,031, the average sale price of a residential-class property in November was up nearly 13% from where it was in November of 2020 ($602,892).
At $415,533, the average sale price of a condo-class property in November was up nearly 15% from the average price two years earlier ($361,758).
As Penny Torontow said in early November, when the city’s October sales figures were released, “If you have owned your property for any length of time, your equity has increased significantly and will buffer price corrections.”
The Ottawa Real Estate Board cautions, as always, that while the average sale price for a specific month can be useful in establishing trends over time, it should not be used as an indicator that specific properties have increased or decreased in value. As with any city, prices in Ottawa vary by neighbourhood.
If you’re considering buying or selling property in Ottawa, I’d be happy to meet with you and tell you about conditions in your area. With more than 30 years of experience as a Realtor in Ottawa, I know the city and its neighbourhoods well, and have negotiated for my clients in a wide range of market conditions.
You can read more about me and my team on my site, www.nancybenson.com. Feel free to give me a call, at 613-747-4747.