It was an up-and-down month for March 2022 new-home sales in Ottawa.
Sales were up slightly compared to March 2021, but they were down significantly when compared to this February’s results, according to the latest monthly report prepared by PMA Brethour Realty on behalf of the Greater Ottawa Home Builders’ Association.
That means we’ll have to wait for April’s numbers to have a better picture of the market’s overall performance for this spring, says PMA’s Ottawa president, Cheryl Rice.
There were 511 new-home sales in March, which is up 0.8 per cent over the 507 homes sold in March 2021. But sales were down 22 per cent from February, when 656 homes were sold. For the year to date, sales are 1,747, up almost 16 per cent compared to last year’s 1,509 sales.
“Unyielding demand for both resale and new homes continues to put pressure on a market that has been tight on supply for at least two consecutive years,” Rice says. “March usually provides an early signal of Ottawa’s spring market performance, but in April – when sales tend to peak – we’ll have a clearer picture.”
Scooped up quickly
She notes that lot releases in March were “scooped up very quickly and left many new-home sites with little to no product to sell,” a pattern we’ve seen in previous months as well. “At some sites, new product releases have been put on hold until April, May and beyond, with some builders planning only a few releases a month throughout the summer, if any.”
She expects sales to fluctuate project by project throughout the coming months, depending on what product is released when and where, “ultimately limiting choice for the consumer.”
Adding to the supply issue is price, which continues to present a barrier for many buyers, especially first-timers, she says.
“Not all buyers entering the market for the first time can rely on the bank of mom and dad for their deposit. Because new-home product is scarce and demand still strong, securing pre-approval for financing is crucial.”
Supply, price, choice, and prudent financial planning are today’s themes, she notes, as our market navigates COVID, higher interest rates and inflation.
