March 4th, 2023 | Real Estate News
Ottawa Real Estate – February 2023
The Ottawa resale market is beginning to show signs of improvement going into the Spring Market. Although the average sale prices are down compared to the peak of last year, February’s residential average price of $708,968 was 5% higher than January 2023.
“We’re going to see declines in transactions and prices when we compare current figures to last February — the height of the pandemic resale market activity,” says Ottawa Real Estate Board’s President Ken Dekker. “On the other hand, with the Bank of Canada holding interest rates steady, prospective buyers have more budget certainty to work with as we head into the spring market.”
“The average price increase for freeholds over January could be an indicator that buyers have normalized to the current interest rates. And perhaps, it’s a glimmer of more activity to come in the months ahead.”
Residential average sale prices decreased by 15% to $708,968 compared to February 2022. Condominium average sale prices decreased by 12% to $410,927.
The average days on market in the residential class experienced a 235% increase to 37 days and a 145% increase to 43 days for condominiums.
633 residential properties were sold in February 2023, a decrease of 42% since last year. Condominiums sold reached 222 which is a 31% decrease.
“A decrease in the days on market, paired with fewer new listings entering the market, is good news for sellers,” says Dekker. “However, if that trend continues to impact our supply stock and we don’t get more inventory, our otherwise balanced market could swing back into seller’s territory — but it’s too early to predict.”
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In conclusion, February has provided early indicators that we could experience a Sellers market again this Spring. It will all depend on listing inventory, which is currently still low in some areas, and the number of new Buyers entering the market. It would appear that many Buyers are now letting go of the “wait-and-see” approach that we experienced last Fall, and are starting their pre-approval process and their home searches again.
Has the time come to get back into the real estate market? If you have any questions, reach out to our team today at 613.829.7484 or email us at [email protected].