In November, the market hibernates

In typical November fashion, activity in the real estate market was on the quieter side last month. Now, the market is known to see less activity around this time, almost as though it embarks on a quick hibernation—but current economic conditions have exacerbated this market low. 

Naturally, there is less proactive action as people brace for an economic downturn. As a result, rentals are notably increasing. At the moment, less people are entering the market given the risks and uncertainties, but as we often say—it’s important to remember that real estate is a long-term investment, and over the long-term, steady growth has been consistent. 

There are always two sides to every coin. The state of the market in Ottawa is becoming quite balanced with a healthy amount of steady inventory that slightly favours buyers. At the end of the day, behind every real estate position, there’s always a possible strategy. A solid strategy accounts for different variables—for example, neighbourhoods, appropriate pricing, and optimal timing. With experience navigating all types of situations, we can help take the stress out of achieving your real estate goals—hibernation, or not! All it takes is a simple conversation for us to learn more about you! As always, we look forward to helping you strategize. 

 

NUMBERS NOVEMBER 2022  Properties sold:  846 residential properties sold in November 2022 (compared with 1,456 in November 2021, decrease of 42%) Five-year avg. for total unit sales in November: 1,270  Sales breakdown: 658 in residential-property class (down 39% from a year ago)  188 in the condo class (down 50% from a year ago)   Avg. sale price: Residential: $680,031 (-5% from a year ago)  Year-to-date avg.: $774,422 (8% increase over 2021) Condo: $415,533 (-4% from a year ago) Year-to-date avg.: $454,436 (8% increase over 2021)  *Note that varied pricing and conditions in different neighbourhoods affect average sale prices   New listings: 1,598 properties were listed in November 12% higher than new listings in Nov. 2021 (1,429) and 22% lower than new listings in October 2022 (2,046)  The 5-year average for new listings in November is 1,398 3.5 months of inventory for residential-class properties (increase from 0.9 months back in 2021)  3.4 months inventory for condo-class properties (increase from 1.1 months back in 2021)   Rentals: Rentals through the MLS system increased 27% this year over last year.

 

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