Ottawa’s April 2022 resale market took a major tumble, with transactions dropping 21 per cent during the normally brisk early spring period. Markets in other Canadian cities plunged as well, with Toronto transactions down 41 per cent and Vancouver off by 34 per cent.
Members of the Ottawa Real Estate Board sold 1,889 residential properties in April through the board’s Multiple Listing Service (MLS), compared with 2,394 in the same month last year. April’s sales included 1,419 non-condo properties, a drop of 23 per cent, and 470 condos, down 13 per cent. The five-year average for total unit sales in April is 1,849.
The April slippage followed a smaller decline in resale transactions during March.
“This was one of the weakest performing Aprils we have seen in a while,” said board president Penny Torontow in a statement. “Considering that the number of new listings increased last month, it is a bit of a surprise that sales were off.”
She pointed to rising interest rates, growing buyer frustration, April’s cooler temperatures and housing supply measures announced by government as reasons buyers may have taken a wait-and-see approach last month. Torontow said the board will be monitoring the rest of the spring market to see if April was an early indicator of a market shift.
Prices still rising
Non-condo properties sold for an average $829,318 last month, up 12 per cent over last year. Condos went for $473,702, an increase of 11 per cent. Year to date, non-condo prices are up 12 per cent and condos 13 per cent compared to last year.
“Limited supply and high demand will continue to place upward pressure on prices,” said Torontow. “And as long as there are buyers willing to pay, average prices will reflect the inventory shortage.” She added that price growth may moderate as price escalations are now less sharp than earlier in the pandemic.
Noting that the condominium market performed better than the non-condo market last month, she said condos with their lower price point might now be the new entry-level housing type.
