Ottawa’s October 2022 resale market continued a months-long slump, with transactions down 41 per cent compared to the same month last year and no signs that the market is about to improve.
The Ottawa Real Estate Board reports that Realtors sold just 987 residential properties through the board’s Multiple Listing Service (MLS) system in October. That’s down from 1,670 properties in October 2021 and considerably less than the five-year average of 1,554.
Those numbers mean the local resale market, which was red hot during the height of the pandemic, has seen eight straight months of lower sales compared to 2021. The new-home market has also seen drastic sales declines over the past months.
Both non-condo and condominium sales were off in October, with just 758 non-condo properties sold and 229 condominiums changing hands. Those results were down 40 and 44 per cent respectively compared to a year ago.
On the upside — at least if you’re a buyer — the inventory of available homes grew again last month after years of low resale stock.
“After the volatility of the past two pandemic years, which was unsustainable, the market is correcting and adjusting,” said board president Penny Torontow in a statement. “The slowdown is compounded by Bank of Canada interest rate increases, which further exacerbates buyer hesitancy and weakens people’s purchasing power — especially first-time homebuyers.”
October 2022 resale market numbers up and down
The average sale price for a non-condo property was $677,873, off five per cent from last year, and $445,691 for a condominium, up nine per cent.
Prices last month were lower than the current year-to-date numbers: $780,390 for non-condo homes and $456,470 for condominium units.
Inventory continued to improve, with a 3.3-month stock of non-condo properties and a three-month supply of condos available. A year ago, inventory was at just one and 1.2 months respectively.
“Demand is still high, and with increasing inventory available, buyers have more choices and time to shop for their new home,” said Torontow. However, uncertainty about where prices and interest rates are headed shakes consumer confidence and has resulted in a wait-and-see approach by some buyers, she added.
Survey reveals buyer preferences
A new national survey shows some surprising and not-so-surprising trends among those shopping for a resale home.
Despite regular news coverage of Canadian housing prices, over 30 per cent of would-be buyers surveyed were looking for a home in the $200,000 to $400,000 range, whereas the average price for a home in Canada in 2022 is around $640,000.
Almost two-thirds were looking for a house rather than a condo, over 29 per cent wanted three or more bedrooms, and just under 35 per cent wanted three baths. The two top priorities for buyers were having a garage and a waterfront view.
While Ottawa homebuyers also wanted three-plus bedrooms and lots of bathrooms, they were a bit more realistic on price. For instance, just over 23 per cent were hoping for a home in the $200,000-$400,000 range. Almost 39 per cent were looking for something in the $400,000-$600,000 range, close to the average price last month of $677,873 for a non-condo property.
