With the new year underway, prospective Ottawa homebuyers have begun to shift their attention to the coming months as we approach the spring market. Since last fall, buyers have been facing an uphill climb in their attempts to purchase a home in Ottawa. It was a particularly difficult time for first time buyers seeking to enter the market at lower, entry level price points. Strong demand, coupled with record low inventory levels and continued concerns surrounding the COVID-19 pandemic resulted in frustration for those who were hoping to make a move.
Ottawa Market Stats: March 2022
In March, the Ottawa housing market saw increases to both supply and selling prices. Overall, there were nearly 600 more transactions than in February, with average sales prices for residential and condominium properties coming in at $853,615 and $479,405 respectively. Compared to last March, there were about 10% fewer transactions. As COVID-19 restrictions have now been lifted in Ontario, we’re seeing increased momentum into a more traditional spring market.
Ottawa Market Stats: February 2022
In February, the Ottawa housing market saw a big increase in activity from January with 52% more transactions. With the announcement of an interest rate increase, and COVID-19 pandemic restrictions being loosened, more sales are starting to occur. We believe that this is the first sign of a significant inventory increase in the coming weeks and months as we head into the spring market.
In February, the average selling price for a residential home in Ottawa was up nearly 17% year over year, coming in at $837,517 with 1,095 properties sold. For condos, the average sales price was $466,682 with 326 units sold.
Ottawa Housing Market Report for 2022
Last year in Ottawa, the city saw saw a 20% increase in residential home prices, bringing the aggregate value to $719,000, while the condominium market experienced a 15% gain with prices rising to $419,000. The supply-demand imbalance brought Ottawa real estate to record prices in 2021.
As 2021 came to a close last month, the traditional holiday slowdown, combined with new public health restrictions pushed Ottawa’s inventory even lower. At its slowest point, there were only about 100 new listings over a 7 day time period resulting in 15% fewer transactions compared to December 2020.
A few weeks into the new year, we’re beginning to see some signs of life, with new listings quadrupling what they were just a few short weeks ago. While working with buyers, I often reference the 7 day snapshot provided by the Ottawa Real Estate Board- this can give you a good idea for the current market activity over a 7 day time interval.
Ottawa Housing Market Predictions for 2022
As we look ahead to the coming months, there are a few good signs for Ottawa buyers. According to the Royal LePage market forecast, home prices are expected to only see single digit (%) price increases this year, which is better than what we experienced in 2021. Additionally, we expect more homes to sell with conditions, which hopefully means that the intense bidding wars that we saw at various points last year are a less frequent occurrence. While supply issues are expected to continue to play a factor over the next few months, indications point to a more traditional acceleration into the Spring, which could mean a rapid influx of new inventory. Having spoken to sellers in the region, many are hoping to see an improvement amongst pandemic related challenges before they decide to list.
With many folks working from home these days, people not only have more time to browse properties that they may be interested in, but they’re also actively evaluating their current living arrangements and assessing whether a move to a bigger space could be beneficial for them and their families. With ongoing health restrictions in Ottawa, this could ultimately drive pent up demand even higher in the coming months.
While we recognize the ongoing challenges that many buyers continue to face, we’re hopeful that 2022 will bring forth a more normal market and allow more people to experience the dream of homeownership.
If you’re thinking about buying or selling in Ottawa or would like to chat about the Ottawa real estate market in 2022, please visit our website at SERNO Realty to learn more and don’t forget to follow us on Instagram to stay up to date on the latest happenings in Ottawa real estate.