May 2022 Ottawa Real Estate Market Update: Laura & Karim Explain Where the Market is Going
Laura Vanderwalt - I'm Laura Vanderwalt on the Nick Fundytus team, and today I'm giving you all the numbers that you need to understand the market, whether you're buying or selling a home.
Demand for housing is likely going to outpace supply, resulting in rising prices. However, interest rates increasing could create some stability for the market.
Buyers - don't get discouraged! There is still great inventory out there for you guys.
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, these numbers help show trends, but not specific to what your home may be worth. If you have any questions, my team is happy to answer any of those by email or leave us a comment down below.
1,889 homes were sold in April 2022, which is down 21% from 2021. 1,419 of these were freehold homes and the other 470 were condominiums. The average price for all freehold homes sold in April in 2022 was $741,000, which is an 11.6% increase from 2021. The average price for condos was $474,000, which was an 11% increase from 2021.
So, what does this mean and why is it happening? My teammate Karim Ali joins us.
So, Karim, what's happening in the market right now?
Karim Ali - So, right now in the market we are seeing increased supply come on market with the spring market arriving. There is still very strong competition though, demand is growing with supply, and sometimes even outpacing supply in certain micro markets within the Ottawa Real Estate Board. Of course, it's very specific to the different micro markets.
So, in certain areas you'll see very much competition, or lots of competition, rather, I should say. In other markets, competition is a bit lesser. So, with the interest rates growing though, there is a potential of the market slowing down in a way where it will be more balanced. Where the increase in inventory would not be matched by increasing demand with it. If that does happen, prices will either slow down or even drop a little bit, which is what we're seeing in Toronto and Vancouver, which are much bigger markets, and where interest rate increases have far bigger effects on markets there.
So, people keep asking, "When are we expecting to see that?" There will more likely be a general slowdown in the summer, as usual, in terms of average prices, and inventory and demand. But, I still see very strong demand for properties that are turn-key. So, that will probably never change, or not change in the near future at least.
Okay, thank you. So, what does this mean for home Buyers?
For home Buyers it means that you are likely to see continued supply come on market, but also continued demand grow. You will still compete with multiple other Buyers, more likely, on most properties in most micro markets, but you will have more options for you. Average prices should not increase, they should remain where they are or, at the very worst, increase in small amounts. And, with the summer you'll likely see less inventory but also less demand, so less competition.
Okay, great. And what would this mean for someone who wants to sell their home?
Someone who wants to sell their home, it means that you'll still get a lot of interest if you were to list today, but in the coming months or weeks you might have to manage your expectations in terms of what to expect in terms of sale price, as you will have more inventory matching the home you'll put on market. It's not very true in every market though, in every micro market of the city of Ottawa, so it will be important for you to monitor your neighborhood to see what to expect.
Okay, that's great. Thank you so much.
I'm Laura Vanderwalt, and that's the Ottawa real estate market in May 2022.
For questions, to get some show notes, or to connect with us, follow us at nickfundytus.ca or connect on socials. I'll be back next month with all the information, so stay tuned and I'll see you next time.