Ottawa’s May 2022 resale market tumbled 19 per cent from April, marking the third slide in as many months and relegating the red-hot sales numbers of a year ago to a distant memory.
Realtors sold 1,846 properties through the Multiple Listing Service (MLS), according to the Ottawa Real Estate Board. That was down from 2,285 in the same month last year and less than the five-year average of 2,031 for the month.
Sales in May, traditionally the highest performing month in resales, included 1,384 non-condominium properties, down 22 per cent from a year ago, and 462 condos, a drop of 11 per cent from May 2021.
“It is quite clear that Ottawa’s resale market is shifting away from the blazing pace of 2021,” said board president Penny Torontow in a statement. “And if rising interest rates, cost of living and inflation aren’t enough factors to cause a pullback, the powerful and deadly storm that brought our city to its knees last month has justifiably impacted the market as well.”
Resale numbers appear to be downward bound in other Canadian cities as well, with Toronto, for example, reporting a 39-per-cent plunge last month compared to a year ago.
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Listings and prices reflect a changing market
Despite the drop in listings immediately following the deadly storm last month, over 3,100 new properties were listed in May. That was five per cent over the five-year average. While the non-condo inventory grew by 18 per cent, condo availability declined slightly. The condo decline is not surprising, said Torontow, “since they have likely become an entry point for many first-time homebuyers due to the affordable price point.”
The average sale price for a non-condo property in May was $802,393, increasing eight per cent from a year ago. Condos averaged $472,920, an increase of 11 per cent from 2021. However, prices for both property types slipped two per cent from April, a positive sign for buyers.
“We are still a far cry away from a balanced market, but it finally seems to be moving in the right direction,” said Torontow.
