Ottawa’s Residential Resale Slowdown Begins a Shift Towards Balance

Members of the Ottawa Real Estate Board sold 1,110 residential properties in July through the Board’s Multiple Listing Service® System, compared with 1,718 in July 2021, a decrease of 35%. July’s sales included 840 in the residential-property class, down 36% from a year ago, and 270 in the condominium-property category, a decrease of 34% from July 2021. The five-year average for total unit sales in July is 1,691.

“July saw 2,338 new listings added to the housing stock, which is on par with the 5-yr average and 5% lower than last year at this time. Our inventory for residential-class properties is currently around 2.9 months and 2.5 months for condominiums. A market is considered balanced with at least four months of supply, so we are well on our way to that paradigm.”

The average sale price for a condominium-class property in July was $425,694, an increase of 1% from 2021, while the average sale price for a residential-class property was $716,354, increasing 5 % from a year ago. With year-to-date average sale prices at $805,238 for residential and $461,557 for condominiums, these values represent an 11% and 9% increase over 2021, respectively.

“If you are selling your home, now is the time to be patient as days on market return to more normal time frames. There are still many Buyers out there, but with more choice, they have less pressure and may take their time. Even though interest rates are still quite reasonable from a historical perspective, consumers are adjusting to this new reality. The rising cost of all goods means people need time to evaluate and adapt their mindsets.”

“I also believe it is time for the federal government to adapt and reassess the stress test. It was originally designed when rates were very low to ensure Buyers could manage rate hikes. With interest rates where they are now, they have to qualify at a 7-8% rate which no longer makes sense and takes many Buyers out of the market.”

Whether you are a Buyer or a Seller, a professional licensed REALTOR® will help you navigate this shifting resale market. I have access to minute-by-minute sales data and local neighbourhood expertise that will assist you in making the best decisions for your circumstances.