August market impacted by uncertainty

It’s no secret that the market is changing. And with yet another mortgage rate increase this month, it’s clear that it’ll have another impact on the real estate market. But what will we see going forward? Let’s start by having a look at how the market fared in August. 

August is generally a slower month for Ottawa real estate simply as the second month of summer vacation, many are on vacation and ‘back-to-school’ is on the horizon. But this year, the already slowed down market faces a unique, additional compounding factor: uncertainty. Interest rate hikes are impacting buyers’ decisions and we are seeing a power shift from seller to buyer, beyond the pandemic market craze. 

This means that the average number of days a property stays on the market is getting closer and closer to the 30-day mark as buyers not only have more, but take more time to make their decisions. More time means more opportunity to follow the usual buying process and facilitate financing and inspection. 

With regards to pricing, some areas are still seeing an increase, just at a much slower, steadier pace, as expected among the typical Ottawa market. With close to 3 months of inventory for residential class and 2.2 months of inventory for condos, we are getting closer and closer to that balanced market. 

It’s important that buyers have access to all their choices and sellers are pricing their properties strategically based on market activity. This is where working with a realtor becomes even more helpful than usual! You know who to call!

Jessica and Shadi bring you Ottawa's market update for the month of August!

NUMBERS AUGUST 2022  Properties sold:  1,137 residential properties sold in August 2022 (compared with 1,565 in August 2021, decrease of 27%) Five-year avg. for total unit sales in August: 1,603  Sales breakdown: 850 in residential-property class (down 27% from a year ago)  287 in the condo class (down 28% from a year ago)   Avg. sale price: Residential: $707,712 (+5% from 2021)  Year-to-date avg.: $795,978 (10% increase over 2021) Condo: $421,966 (+4% from a year ago) Year-to-date avg.: $457,771 (9% increase over 2021)  *Note that varied pricing and conditions in different neighbourhoods affect average sale prices   New listings: 2,093 properties were listed in August Nearly 3 months inventory for residential class  2.2 months inventory for condos  Rentals: Since the beginning of the year 4,172 properties have been rented out with the assistance of realtors compared to 3,182 last year at this time.

 

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