August 2022 Ottawa Real Estate Market Update: Nick Explains Where the Market is Going
If you're a homeowner or a prospective home Buyer, what do you need to understand about Ottawa's real estate market in August 2022?
I'm Nick Fundytus and this month I will let you know what has happened in July and what you can look forward to in August.
August continues a slowing and cooling trend where we're seeing a balance of home sales and home purchases. Here's what the numbers looked like last month.
This past month, 1,110 properties sold in the Ottawa market. That's about 35%, down from last July's pace. Now, out of those, 840 were residential class, which meaning they were freehold properties and the other 270 were condominiums. On the five year average, there's about 1,691 properties sold every year. So this is down from the five year average as well.
A particularly important number is 2,338. This was the number of homes that were added as new listings to the Ottawa market in July. Now, this is significant, although it's down 5% from last year, this shows that we are adding more properties to the market than we are subtracting through sale.
Okay, so why do these numbers matter? If you're a home Buyer or home Seller, what's the significance here?
Well, first of all, it means that, as I said, we're returning to a balanced market. That means that we're seeing a number of homes that can be absorbed by the number of Buyers that are on the market. This is generally considered a healthy state for the market. It means that prices tend to stabilize and return to single digit increases in price as we have seen over the past 50 years or so in Ottawa. Ottawa tends to be a very slow and stable growth market and that makes it easy to predict. And what we have seen during the COVID Pandemic is something out of the ordinary.
Second, it means that interest rate hikes that have been done by the Bank of Canada are having their intended effect, or their intended effect was to kind of curb runaway prices. And as we can see by what's happening here and in other markets around the country, we can see that that is indeed what's happening. Now, that should hopefully also stabilize, it should signal back to the Bank of Canada that we can start to stabilize interest rates and that will come as a relief for any prospective home Buyers and also for anybody who might be on a variable mortgage right now.
It also means that if you are a Buyer who is sitting on the sidelines and you may be left out a little bit over the past couple of years, this is your chance to get back into the market, to save some money and hopefully purchase, if that's what you're intending to do.
Now, as always, this comes with a caveat that these are average numbers for the city. Any individual market, any individual type of property, whether it be condos or certain types of row homes, certain neighborhoods in the city, all have different submarkets. And if you would like to know what's going on in any particular submarket, my team and I are always happy to answer your questions - we love getting questions. We love answering them for you. And we can do it here on video, or we can do it by email or in person.
And if you would like to be updated on the market every month, just follow us on YouTube, click the bell to subscribe, and you will never miss one of our monthly market updates. We look forward to serving you and being your experts in the Ottawa real estate market.
As I said, I'm Nick Fundytus. And this is the Nick Fundytus team.