March 2022 Ottawa Real Estate Market Update: Laura & Nick Explain Where the Market is Going
Laura Vanderwalt - What do you need to understand about Ottawa's Real Estate market in March 2022?
I'm Laura Vanderwalt with the Nick Fundytus Team, and here are all your numbers that you need to know and why.
March hasn't gotten any easier for home Buyers with continued multiple offers throughout the market, plus inflation and further interest rate increases throughout the horizon.
If you're a homeowner who doesn't need to buy this month, you'll benefit from a shortage of competition and plenty of interest if your home is well prepared and well marketed.
In February, we had a slight increase of inventory in comparison to January, still not enough to bring us back to a balanced market.
Moving into March, we remain in a Seller's market. Without a doubt, the increase in interest rates, limited supply, and increase of home prices will have an impact on home Buyers.
Here are the stats for the past month from the Ottawa Real Estate Board and the Canadian Real Estate Association. For explanations of any terms, head over to nickfundytus.ca/glossary. Keep in mind that these numbers help show trends, but not what your home might be worth. My team and I are happy to answer any of your questions if you give us an email or leave a comment down below.
1,421 homes were sold in February 2022, which is up 2.6% from last year. 1,095 of these were freehold homes and the other 326 were condominiums. The average price for all freehold homes sold in February was $837,000, or 16.8% above last year. The price for condos was $466,000, a 14.5% increase.
One important statistic is the number of houses sold over a million dollars. Last month, there was a total of 242 houses that sold for over a million dollars. This tracks the sea level change that we're seeing throughout neighborhoods and types of homes that we're seeing across the city.
So what does this mean, and why is it happening? To answer all of these questions, my teammate Nick Fundytus joins us to answer all the questions.
So Nick, what are we seeing in the market right now?
Nick Fundytus - Okay, so this month I want to focus on a couple of things. The main one being supply, and then second, what that does to different types of homes that are on the market.
Now, OREB, the Ottawa Real Estate Board, has come up with a statistic over the last month that we only have 0.7 months of inventory. What that means is that if listings were to dry up today, not another home was listed on the market, it would only be about three weeks before everything that was on the market was bought. So, that's a really small supply. That's a strong and trench-Sellers market. And what it means is that there's upward pressure on prices, as we know, and we can see that by the bidding wars and things that are out there.
Now, how this affects different levels of the market is that we're having Buyers, especially first-time Buyers that kind of feel like they're on the dock as the boat is leaving, and the boat being their chances at home ownership, and it's really discouraging as a first-time home Buyer. There may be some price cooling-off with interest rates rising, but that doesn't actually help the first-time home Buyer that much because with interest rates it also affects their affordability. So higher interest rates mean that it's more expensive to borrow money, and the people who have to borrow money the most are people who are buying their first home.
Now, at higher ownership levels, so if you already own a home or if you own multiple homes, it doesn't affect you as much if you're holding a property but there does seem to be inflation everywhere, not just in homes.
And ultimately it's an issue that does affect everyone because even if you are a homeowner now, when you move one day, you're going to be a Buyer on the other
end as well, even though you may reap the rewards from the increased equity on your home.
What the solution is, I don't know. I do know that there's a provincial election coming up in the next three months here, and I do think that for all of us, I think it's time to put a lot of pressure on our prospective MPPs, and all levels of government who can affect housing, to really demand a real plan to deal with this because it's something that drives inequality in our society and it's not a fair or right situation. It needs to be dealt with right.
So, there you go. That's my thoughts this weekend, my rant.
I'm Laura Vanderwalt and that's the Ottawa Real Estate market in March 2022.
For questions, show notes, or to connect with us, head over to nickfundytus.ca.
I'll be back next month to keep you updated. Thanks for watching.