Market Trends

An Early Spring Market

Perhaps due to forecasted higher interest rates, the anticipated easing of government COVID restrictions, or an uptick in economic activity, Ottawa’s spring housing market got an early start this year. February saw 52% more transactions than January. While an upward trend in activity is normal this time of year, this growth is significantly higher than usual. House prices also continue to grow. The average sale price for a condominium-class property in February was $466,682, an increase of 15 per cent from 2021, while the average sale price for a residential-class property was $837,517, increasing 17 per cent from a year ago.

Has our spring market come early or will it continue as it traditionally has through to the summer? Higher interest rates and other macro factors in the global economy are headwinds to watch to be sure. But, continued strong demand and inventory scarcity are unrelenting and continue to put upward pressure on the housing market. 

New listings offer a glimmer of hope for buyers as they are 4% higher than the five-year average for February and up 12% from February, 2021, no doubt as a result of strong price growth. This news is tempered with 0.7 months of current inventory and the continued downward trend of Days on Market as new listings are quickly snapped up.

“Ottawa is a beautiful city with a healthy, stable economy and is a utopic place to work, live and play. It attracts Canadians from other cities and people from all over the world. But it is deeply entrenched in a Seller’s Market. This means homebuyers need to have all their ducks in a row and are prepared to move expeditiously.” said Ottawa Real Estate Board President Penny Torontow. 

While the market can be daunting, Elisabeth and I continue to successfully help our clients make strong housing moves during these unparalleled times. 

OREB | Rina@oreb.ca