The July market brings us a step closer to what was once a distant dream: a balanced market

In recent times, the word on the street has been about how the real estate market is dramatically slowing down, but we want to take a moment to highlight and understand the context of this phenomenon and what it really means.

Here’s the deal

While there’s no denying sales have slowed, it’s important to note that they’re slowing from a state of hyperactivity. The COVID-19 pandemic put the market into overdrive and brought us further and further away from having a balanced market. Now, we’re starting to see the market gradually return to its usual state, albeit with increased interest rates. However, the President of the Ottawa Real Estate Board, Penny Torontow points out that interest rates are still reasonable from a historical perspective—and as with the rising cost of all goods, consumers simply need time to adjust to this new reality. 

And now the good news 

A slower market means more properties are available and inventory is in recovery mode. A minimum of 4 months supply is needed for a balanced market and currently, for residential-class properties, there is around 2.9 months worth of inventory, while for condo-class properties it’s around 2.5 months. A balanced market is not so far away after all. 

We’re also seeing average sale prices transition to a more steady state growth—though notably, they are subjective to various neighbourhoods. 

A note to sellers 

Patience is key as the market and buyers adjust to these changes. With a calmer market, buyers are granted more time for decision-making but it doesn’t mean they aren’t still looking to buy. 

We’re always here to help. Whether you’re a buyer or a seller, we care about providing you with top quality advice, as well as the most support possible, as you make these big decisions. 

Check out Shadi's market update! 

 

NUMBERS JULY 2022  Properties sold:  1,110 residential properties sold in July 2022 (compared with 1,718 in July 2021, decrease of 35%) Five-year avg. for total unit sales in July: 1,691  Sales breakdown: 840 in residential-property class (down 36% from July 2021)  270 in the condo class (down 34% from July 2021)   Avg. sale price: Residential: $716,354 (+5% from a year ago)  Year-to-date avg.: $805,238 (+11% over 2021) Condo: $425,694 (+1% from a year ago) Year-to-date avg.: $461,557 (+9% over 2021)   *Note that varied pricing and conditions in different neighbourhoods affect average sale prices   New listings: 2,338  (On par with five-year avg., 5% lower than July 2021)  Rentals: Since the beginning of the year 3,528 properties have been rented out with the assistance of realtors compared to 2,706 last year at this time

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