With a new year comes new opportunities. In this post, we’ll take a closer look at the 2023 housing price forecast for the Ottawa real estate market and touch on what happened over the past year.
2022 was nothing short of a wild ride for our real estate market. It was a year unlike any other that I’ve seen during my time in the business. From March to November, we witnessed the average sales price for a residential home in Ottawa go into a free fall – from over $850,000 in March to $680,000 in November.
For a detailed, month by month breakdown of pricing history for the Ottawa real estate market, be sure to check out our full post on that.
We experienced highly competitive bidding wars transition to sellers who are just desperate to get any offer at all. It’s pretty crazy to think just how much things have changed in such a relatively short period of time.
The Bank of Canada has been aggressively hiking interest rates to the highest level they’ve been since the 2008 financial crisis in an effort to cool off demand. From the historically low rate of 0.25% throughout much of the COVID pandemic to the most recent 4.25% rate that was announced just a couple of weeks ago.
These changes have prompted an increasing number of buyers and sellers to wait things out from the sidelines.
With the new year on the horizon, you may be wondering what’s next.
The good news is that the Bank of Canada has signalled that interest rate hikes are nearing an end. This will provide some much needed stability and should ease uncertainty for both buyers and sellers who are currently on the fence
How effective these rate hikes have actually been at reducing inflation is up for debate. The Bank of Canada themselves have acknowledged that a cost of living crisis for essential goods continues to impact Canadians day to day.
According to the 2023 Royal LePage Market Forecast, housing prices in Ottawa are expected to rise 2% by the end of Q4 in 2023. The Nation’s Capital will be one of a few Canadian markets that will see year over year increases, unlike Toronto, Montreal and Vancouver where prices are expected to fall.
A supply shortage continues to impact our country on a national level and housing prices will not experience a significant drop as long as demand continues to outpace supply.
First time, millennial home buyers and a record number of new immigrants who are coming to Canada are sustaining these levels of demand while at the same time, unemployment is low and job vacancies remain high.
As we enter the new year, I’m hopeful and optimistic for what 2023 may bring. I believe that patience and persistence will provide many of you with the opportunity to make the move you’ve been waiting for.
If you’re unsure about what you may or may not want to do, I totally understand.
The response I often hear from buyers when I ask them about what I can do to help is that they’re interested but… “I’m just browsing” or “I’m not ready right now.”
As a results driven, client focused real estate agent, I’m fully invested in your journey.
Whether you’re a first time home buyer, a seasoned investor or simply looking for a change of scenery, my number 1 goal is to help my clients throughout their journey.
From start to finish, I’m here to earn your trust throughout each step in the buying or selling process. If you’ve thought about making a move, please visit us online to learn more about how we can help you achieve your goals.
I hope you have a great year ahead!