With the continued lack of inventory, home prices have continued to increase.

The total number of homes sold through the MLS system in January 2022 was 936 which is a decrease of 3% compared to the year before.

“January’s sales, almost identical to 2021’s, were very strong for a traditionally slower month, especially given the frigid temperatures and increased government Covid-19 restrictions we experienced,” states Ottawa Real Estate Board President Penny Torontow. “This increased activity compared to previous years is not solely a pandemic phenomenon. Yes, the pandemic has accelerated market activity in some ways, but pent-up Buyer demand due to the housing supply shortage has been an ongoing fundamental issue for the Ottawa resale market for well over 5 years now – and the price increases will continue to reflect that until the housing stock grows.”

January Housing Market Snapshot

Residential average sale prices increased by 14% to $771,739 compared to January 2021. Condominium average sale prices increased by 17.8% to $447,943.

The average days on market in the residential class experienced a 20.1% decrease to 20 days and a 5.9% decrease to 26 days for condominiums.

661 residential properties were sold in January 2022, a decrease of 1.8% since last year. Condominiums sold reached 275 which is a 5.2% decrease.

Lack of Inventory

Torontow observes, “average prices continue to rise steadily with the lack of inventory pushing prices to levels previously unseen. We only need to observe the number of homes now selling over $1M for a clear demonstration. In 2020, they represented 3% of residential sales, in 2021, they held 9% of the market’s resales, and now in 2022, that number reflects close to 14% of detached home sales.”

These new higher price levels resulted in 47% of all residential sales ranging from $650,000- $900,000 compared to January 2021 when this was only 33% of sales. The condominium market is also rising as a result, since many buyers are priced out of the residential market.

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Note: * The Ottawa Real Estate Board cautions that the average sale price can help establish trends over time but should not be used to indicate the value of homes and condominiums. Average sales prices are calculated on the total dollar volume of all properties sold. Of course, pricing and conditions will vary from neighbourhood to neighbourhood.