The Ottawa resale market continues to slow this November with many home buyers choosing to take the “wait-and-see” approach.

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“November’s sales were expectedly low given the typical slowdown this time of year but they also reflect today’s economic conditions,” says Penny Torontow, OREB’s 2022 President. “This is not isolated to our local market. Globally, we’re still adjusting to the post-pandemic world and that affects demand, pricing, interest rates, cost of living, supply chain disruptions and more. As a result, those who can, are waiting and watching.”

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“What’s concerning about the current market is the impact on first-time homebuyers,” says Torontow. “The marked decrease in condo sales, for example, signals that even entry-level properties are being affected. Fluctuating markets, paired with the stress test, are keeping first-time buyers on the sidelines in a tight rental market—with MLS® rentals increasing 27% this year over last.”

Residential average sale prices decreased by 5.2% to $680,031 compared to November 2021. Condominium average sale prices decreased by 3.8% to $415,533.

The average days on market in the residential class experienced a 54% increase to 30 days and a 19% increase to 30 days for condominiums.

658 residential properties were sold in November 2022, a decrease of 39% since last year. Condominiums sold reached 188 which is a 50% decrease.

“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,” states Penny Torontow.

We historically expect sales to be slower at this time of year as people are focusing on the holidays. We are finally in a balanced market. It will be interesting to see if that lasts, as many buyers have put their searches on hold right now. If all of these buyers come back into the market next year, we could see low inventory again, if the listings do not keep up with the demand.

For more market insights and buying or selling advice, reach out to us today. Call us at 613.829.7484 or email mail@chellteam.com to speak to our team directly.