Market Trends

Buyer Uncertainty Slows Market

After two years of explosive growth, buyer apprehension brought about primarily by higher interest rates has cooled Ottawa’s market considerably. Consider the following:

• The number of year-over-year house sales in August decreased by 27% from 1,565 in 2021 to 1,137 in 2022

• Average Days on Market approached 30 in August (compared to 10 to 15 over the last two years)

• Housing inventory increased to 2,093 or nearly 3 months for residential class properties (compared to less than one month seen over the last two years)

• Prices are still up year-over-year at 4 and 5% for condo and residential properties respectively, but significantly lower from the heady days of 20 to 30% year-over-year increases. 

• Prices are still rising in some neigbourhoods, but in the single digits. 

All of this indicates that lightening quick markets are a thing of the past and we are moving towards balance. This is further supported by fewer multiple offer scenarios and a return to standard financing and inspection conditions.

Given the new market realities, buyers and sellers need to adjust strategies. For sellers, level-headed pricing is more important than ever. Price and strategize for this market to optimize outcomes, not the past. For buyers, opportunities abound and unlike this winter and spring; patience will be rewarded, particularly with properties taking longer to sell. Also, consider well your financing options - this is more important than ever!

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