The market in May took things slow!

May—the month of the year that typically sees the highest number of resales—was much calmer this year. Along with the usual suspects (interest rates, inflation), the destructive storm over the May long weekend really took its toll too—causing a drastic decrease in new listings as well as a rise in cancelled or suspended listings in MLS, according to data from the Ottawa Real Estate Board (OREB).

However, overall there were 3,120 properties that entered the market, resulting in an 18% increase in residential inventory. On the other hand, condo inventory decreased by 0.4%, which is no surprise as its relative affordability has turned it to a favourite for first-time home buyers. 

Average sale prices have also calmed down. While still higher than last year, the difference between months has decreased for both residential and condo properties. The cooler market is a good sign for buyers—with about 1.2 months worth of residential inventory and 1 month worth for condos, we’re getting closer to that balanced market! 

The number of cumulative days on market (CDOM) is another noteworthy statistic, particularly for providing context on this shifting market. CDOM was 14 days in May, while in May of last year it was 11. This is no cause for panic to sellers though as CDOMs in a balanced market are around 30-60 days, and closer to one-month in Ottawa. If anything, it’s a reminder that the super speedy pace was an abnormality, and now buyers can finally breathe a little. 

Notably, rentals have increased too. From the beginning of the year until now, 2,320 properties have been rented out with the help of realtors, compared to 1,837 during the same time last year. 

If you want to make sure your home is priced advantageously in this ever-changing market, contact us! And if you’re a buyer, we’re here to help you find your perfect home!

 Check out Shadi's market update below!

 

NUMBERS MAY 2022  Properties sold:  1,846 residential properties in May 2022 (compared with 2,285  in May 2021, decrease of 19%) Five-year avg. for total unit sales: 2,031  Sales breakdown included: 1,384 in residential-property class (down 22% from May 2021)  462 in the condo category (down 11% from May 2021)   Avg. sale price: Residential: $802,393 (+8% from a year ago)  Year-to-date avg.: $824,276 (+12% over 2021) Condo: $472,920 (+11% from a year ago) Year-to-date avg.: $470,353 (+12% over 2021)   *Important to note that varied pricing and conditions in different neighbourhoods affect average sale prices   New listings: 3,120  (on par with May 2021, 5% over five-year avg., +18% in residential inventory, -0.4% in condo)

 

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