April showers bring a shift to the real estate market
A couple of variables made their play and impacted the real estate market’s performance last month: rising interest rates and housing supply measures that were introduced by the government as part of the 2022 federal budget.
The number of sales in April—only 40 units above the five-year average—showed a noticeably slower pace than in previous years. With new factors at play in the market, it’s not completely surprising to see that some buyers are considering the waiting game.
Housing stock did increase slightly last month, providing buyers with a little more choice and opportunity. However, with inventory levels at just under a month’s supply, demand still prevails and it’s still a seller’s market. Because of this, average prices continue upwards, though not as aggressively as before.
Interestingly, OREB speculated that the condo market may be slightly outperforming the residential market because of its more affordable price point, thus being more entry-level friendly.
On the other hand, rental properties are seeing significant increases across the board: number of listings, rental transactions, and average costs—with 23% more properties being rented and prices 3-4% higher compared to this time last year.
It seems the spring market is shaping out to be quite the ride—the Ottawa Real Estate Board (OREB) is keeping a close eye on the market in the coming months to see if this shift is here to stay, as are we.
Check out Shadi's recap of the April market!
- The Ottawa Real Estate Board: April Residential Resales in a Flux
- CTV News: Signs of a cooling real estate market in Ottawa
- Ottawa Citizen: A new ‘normal’ glimpsed in Ottawa real estate as April home sales drop, listings increase