This article by Josh Pringle of CTV News is mostly information you will have read in the Ottawa Real Estate Board News Release, however, the article ends with a 12 month table showing the fluctuation of home prices in Ottawa.
OTTAWA, August 3, 2023 – Members of the Ottawa Real Estate Board (OREB) sold 1,263 residential properties in July through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,102 in July 2022, an increase of 15%. July’s sales included 979 in the freehold-property class, up 18% from a year ago, and 284 in the condominium-property category, a 6% increase from July 2022. The five-year average for total unit sales in July is 1,621.
“Both transactions and average prices are up from last July indicating consumers remain confident in the market notwithstanding the two recent quarter-percent interest rate hikes by the Bank of Canada. We’re only a month into the third quarter, but based on July’s positive indicators, we are likely to see solid year-over-year results in the second half,” says Ottawa Real Estate Board President Ken Dekker.
By the Numbers – Average Prices*:
- The average sale price for a freehold-class property in July was $754,188, an increase of 5% from 2022, and a 1% increase over June 2023 prices.
- The average sale price for a condominium-class property was $435,094 an increase of 2% from a year ago, although 3% lower than June 2023 prices.
- With year-to-date average sale prices at $735,103 for freeholds and $433,447 for condos, these values represent a 9% decrease over 2022 for freehold-class properties and a 6% decrease for condominium-class properties.
By the Numbers – Inventory & New Listings:
- July’s new listings (2,234) were 6% lower than July 2022 (2,364) and down 19% from June 2023 (2,755). The 5-year average for new listings in July is 2,336.
- Months of Inventory for the freehold-class properties has decreased to 2.7 months from 2.9 months in July 2022 but increased from 2.1 months in June 2023.
- Months of Inventory for condominium-class properties has decreased to 2.3 months from 2.5 months in July 2022, but is up from 1.4 months in June 2023.
- Days on market (DOM) for freeholds have increased to 26 days from 20 days in July 2022 and 23 days from June 2023.
- Days on market (DOM) for condos have increased to 28 days from 20 days in July 2023 and 27 days in June 2023.
REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 3,921 properties compared to 3,528 last year at this time, an increase of 11%.
* OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.
The Ottawa Business Journal reports that the inflation rate has gone down to 2.8% in June. Details here.
Last week Royal LePage released its Home Price Update and Market Forecast.
Key highlights from the release include:
- National aggregate home price remained almost flat year-over-year in Q2 2023 (-0.7% over Q2 2022) and increased 4.0% quarter-over-quarter (second consecutive quarterly increase)
- Aggregate price of a home in Canada in Q2 2023 sits just 5.6% below the peak reached in Q1 of last year 94% of regions in the report posted quarterly aggregate home price appreciation
- National year-end forecast updated. Prices in Q4 2023 now expected to rise 8.5% over final quarter of 2022; essentially flat over the next six months
- Chronic shortage of housing supply, due in part to sellers’ hesitancy to list, continues to put upward pressure on home prices
- Royal LePage urges officials to quickly increase support for more development, including affordable, purpose-built rental buildings
In light of recent interest rate hikes the Canadian Real Estate Association (CREA) has adjusted it’s forecast for the remainder of 2023 and for 2024. Details here.