Detached Home Average: $747,310⬆️ 3.5%
Condo Average: $421,966 ⬆️ 4%
Semi-Detached Average: $667,655 ⬆️ 5%
Row Home Average: $611,715 ⬆️ 6%
2093 new listings came to market this past month.
This is on par with what we normally see in August
1137 residential properties sold over the last month
This is DOWN 30% from last August. The five-year average is 1603 sales for the month of July.
How quickly new properties are sold and absorbed into the market
January 2022 – 48% absorption rate
February 2022 – 55% absorption rate
March 2022 – 55% absorption rate
April 2022 – 46% absorption rate
May 2022 – 39% absorption rate
June 2022 – 28% absorption rate
July 2022 – 22% absorption rate
August 2022 – 22 % absorption rate
Just like July, the number of sales was down from last year; however, prices increased about 4% from 2021.
We knew that August was going to be a slower month. We have beautiful weather in August, and we could get outside to socialize! There was also some Buyer uncertainty about what would happen with interest rates. We know the interest rates increased again. This brings some certainty back into the market. We are entering a NORMAL real estate market
Buyers, if you haven’t already connected with a mortgage specialist, reach out to me, and I will connect you.
One of the best analogies I have heard lately is that buyers and sellers are standing on two different sides of a bridge. Over the last couple of years, the buyers have jumped to meet the sellers. Now it is the seller’s turn to cross that bridge the meet the buyers. Sellers can do this by having realistic asking prices. Don’t worry about your neighbour who sold in March.
Currently, we have about 2.7 months of inventory on the market. Technically this is still considered a seller’s market and where Ottawa usually sits. A balanced market is 4-6 months of inventory and 6 plus months is a buyer’s market.
What to expect this month?
We will continue to watch the absorption rates and those months on the market. My feeling is that we are going to see a plateau. Again, this is the trend we usually see here in Ottawa; every decade, we have 2-3 years of double-digit growth, then a plateau. Some neighbourhoods may see a decline. This is the balancing that we needed to happen.
It’s September! September is the month of fresh starts! I’m here to answer any questions that you might have about your individual situation. All you have to do is reach out!
RE/MAX Hallmark Realty Group🏡
Ottawa 30-second Real estate market update
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OTTAWA, September 6, 2022 – Members of the Ottawa Real Estate Board sold 1,137 residential properties in August through the Board’s Multiple Listing Service® System, compared with 1,565 in August 2021, a decrease of 27 per cent. August’s sales included 850 in the residential-property class, down 27 per cent from a year ago, and 287 in the condominium-property category, a decrease of 28 per cent from August 2021. The five-year average for total unit sales in August is 1,603.
“August is a traditionally slower month in Ottawa’s resale market ebb and flow cycle due to summer vacations. Compounding the slowdown in market activity, Buyers are uncertain about their purchasing power given impending additional interest rate hikes,” states Ottawa Real Estate Board President Penny Torontow.
“The lightning speed at which homes were selling at the start of 2022 is a thing of the past, evidenced by Days on Market (DOMs) inching closer to that 30-day mark. We have also observed a return to standard financing and inspection conditions and fewer multiple offer scenarios,” she adds.
• The average sale price for a condominium-class property in August was $421,966, an increase of 4 per cent from 2021.
• The average sale price for a residentialclass property was $707,712, increasing 5 per cent from a year ago.
• With year-to-date average sale prices at $795,978 for residential and $457,771 for condominiums, these values represent a 10 per cent and 9 percent increase over 2021, respectively.*
• 2,093 properties were listed in August, boosting inventory to nearly 3 months for residential class properties and 2.2 months for condominiums.
“Prices are still rising slightly in some areas, albeit lower single-digit percentage increases, bringing back the moderate price-growth stability that is characteristic of the Ottawa resale market. What happened to prices in 2020 and 2021 was unusual. We are moving towards a balanced market state, where Buyers have choices and Sellers need to ensure they are pricing their properties accurately,” Torontow advises.
“The informed market knowledge and insight of a licensed REALTOR® is critical to both Buyers and Sellers navigating market shifts. Sellers will want to closely explore with their REALTOR® the best time and price to list their home to optimize a property’s days on market. Buyers can use the extra time to work with their REALTOR® on due diligence and finding a dream home that meets their needs within their financial parameters.“
REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 4,172 properties compared to 3,182 last year at this time.