The Ottawa real estate market continued to slow in May 2022. Homes sold decreased by about 20% from a year ago and active listings were up about 18% from a year ago.
- Detached homes gained 6.7% from a year ago. They were down about $10,000 on a month to month basis.
- Townhomes were up 8.8% compared to a year ago and lost about $30,000 on a month to month basis.
- Condos gained about 11% compared to a year ago and were mostly flat on a month to month basis.
Days on market is still very low at 11 days for homes and 13 days for condos. However, I saw a lot of cancelled listings which indicates that many properties went to market and did not receive their desired offer price. After a certain period these homes were either re-listed or taken off the market.
As the Bank of Canada continues to increase interest rates, the cost of financing will continue to go up thus causing a significant headwind for home prices.
Key Insights for Buyers:
I anticipate that buyers will be in a good position for the next 12 months. Inventory has increased and bidding wars are mostly over (minus a few select in demand properties). As mortgage rates continue to increase, I anticipate some further price reductions and increased inventory.
Key Insights for Sellers:
The Ottawa market has been less effected by the slowdown in the real estate market. Prices are still a few percentage points off their record highs and there is strong buyer demand. With the correct pricing and marketing strategy most homes will sell in 1-4 weeks.
I am always happy to answer any real estate related questions you may have.
Sales Representative / Sutton Group – Ottawa Realty / Brokerage, Independently Owned and Operated
Hintonburg – Orleans – Kanata
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