A flurry of activity in March (figuratively, and quite literally)

March gave us a flurry of market activity, with a side of actual unexpected flurries. Although the number of sales last month were down compared to March of 2021 (perhaps just a byproduct of distractions such as unpredictable weather and the easing of some pandemic measures), it still proved to be quite busy—with 590 more units sold (that’s 42%) than in February and 12% higher than the five-year average for the third month of the year. It’s setting the stage for April, typically the month of the year that sees a higher number of sales. 


Average prices continue to move on up. Though in a short term comparison, they only increased 2-3% from February, a look at the longer term shows that the year-to-date averages for residential and condo property classes have increased by 13-14% from 2021. 


There may be a light after all at the end of the tunnel of housing shortage 


Last month, residential-class property inventory came in at 10.5% higher than in March of 2021, but for condo-class it was actually 12% lower. Overall, March inventory was about 6% lower than in March last year, however, it did still surpass its five-year average by 4% (100 units). As it stands now, the Ottawa Real Estate Board reports that we’re at about a half month’s supply of inventory, still quite a bit away from the 4 month threshold of establishing a balanced market. 


But there may be a light at the end of this tunnel—at the close of the month, the provincial government introduced the More Homes for Everyone Act, committing to a long-term strategy to address the critical housing supply issue. The Act includes implementing measures to get homes built faster by reducing red tape and increasing the non-resident speculation tax to 20%. 


We’re hopeful that this could help bring about the more stable market we’ve all been waiting for but only time will tell! 

 

Check out Leo's recap of the March market!

 

NUMBERS MARCH 2022  Properties sold:  2,011 residential properties in Mar. 2022 (compared with 2,274  in Mar. 2021, decrease of 12%) (compared with Feb. 2022, increase of 42%) Five-year avg. for total unit sales in Mar.: 1,792  Sales breakdown included: 1,493 in residential-property class (down 12% from Mar. 2021)  518 in the condo category (down 10% from Mar. 2021)    Avg. sale price: Residential: $853,615 (+13% from a year ago)  Year-to-date avg.: $831,122 (+14% over 2021) Condo: $479,405 (+10% from a year ago) Year-to-date avg.: $467,915 (+13% over 2021)   *Important to note that varied pricing and conditions in different neighbourhoods affect average sale prices   New listings: 2,632  (4% higher (100 more units) than five-year avg., 6% lower than March 2021) Residential inventory: 10.5% higher than Mar 2021 Condo inventory: 12% lower than Mar 2021

 

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