Sales were much slower in December 2022 compared to December 2021 where the Ottawa real estate market remained strong for Sellers throughout the holiday season.⁠

“Even with the normal seasonal slowdown, December’s performance was in stark contrast to the very active resale market that opened 2022,” says Ken Dekker, OREB’s newly installed 2023 President. “As interest rates and inflation both climbed, buyers retreated to the sidelines and began taking a wait and see approach. However, while it’s quieter than the frantic pace we experienced in 2021, it is now a balanced market.”

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“Although market activity tapered off in later 2022, there was an immense amount of activity in the spring at high prices,” says Dekker. “This will be an important caveat to consider as we begin comparing 2023 numbers to the previous year.”

Residential average sale prices decreased by 7% to $655,839 compared to December 2021. Condominium average sale prices increased by 9% to $434,937.

The average days on market in the residential class experienced a 71% increase to 38 days and a 56% increase to 42 days for condominiums.

466 residential properties were sold in December 2022, a decrease of 22% since last year. Condominiums sold reached 135 which is a 48% decrease.

2023 Lookahead
“Since Ottawa is made up of hyper-local markets, it is a difficult ecosystem to forecast,” says Dekker. “Plus, there are a multitude of factors influencing a changing economic environment these days that will dictate how much activity the resale market will see in 2023.”

It will be interesting to see what happens in the coming months as home buyers are beginning to adjust to rate increases and an officially balanced market. If more home buyers let go of their “wait-and-see” approach, we may experience a more typical spring market this year.