Stabilized July Resale Market Showing Positive Price Gains

OTTAWA, August 3, 2023 - Members of the Ottawa Real Estate Board (OREB) sold 1,263 residential properties in July through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,102 in July 2022, an increase of 15%. July’s sales included 979 in the freehold-property class, up 18% from a year ago, and 284 in the condominium-property category, a 6% increase from July 2022. The five-year average for total unit sales in July is 1,621. “Both transactions & average prices are up from last July indicating consumers remain confident in the market notwithstanding the two recent quarter-percent interest rate hikes by the Bank of Canada. We’re only a month into the third quarter, but based on July’s positive indicators, we are likely to see solid year-over-year results in the second half,” says Ottawa Real Estate Board President Ken Dekker. By the Numbers – Average Prices*: • The average sale price for a freeholdclass property in July was $754,188, an increase of 5% from 2022, and a 1% increase over June 2023 prices. • The average sale price for a condominium-class property was $435,094 an increase of 2% from a year ago, although 3% lower than June 2023 prices. • With year-to-date average sale prices at $735,103 for freeholds and $433,447 for condos, these values represent a 9% decrease over 2022 for freeholdclass properties and a 6% decrease for condominium-class properties. “July’s average prices are showing positive gains over last year, and year-to-date numbers, as expected, are still closing the gap from the peak pandemic market activity of early 2022. Additionally, inventory continues to climb steadily as new listings are added to the housing stock, creating more options for homebuyers. August may be a slower month in Ottawa, but I wouldn’t take a vacation from shopping for your home.” By the Numbers – Inventory & New Listings: • July’s new listings (2,234) were 6% lower than July 2022 (2,364) and down 19% from June 2023 (2,755). The 5-year average for new listings in July is 2,336. • Months of Inventory for the freeholdclass properties has decreased to 2.7 months from 2.9 months in July 2022 but increased from 2.1 months in June 2023. • Months of Inventory for condominiumclass properties has decreased to 2.3 months from 2.5 months in July 2022, but is up from 1.4 months in June 2023. • Days on market (DOM) for freeholds have increased to 26 days from 20 days in July 2022 and 23 days from June 2023. • Days on market (DOM) for condos have increased to 28 days from 20 days in July 2023 and 27 days in June 2023. “Although we are in a sellers’ market again, the pandemic’s frenzy has calmed considerably. Sellers need to manage their expectations with true market activity — not every property will automatically see multiple offers or immediate sales. Ultimately, a property’s price is determined by how much a buyer is willing to pay. Using the marketing and negotiation skills of a professional licensed REALTOR® is instrumental for both buyers and sellers in this fluid market.” REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 3,921 properties compared to 3,528 last year at this time, an increase of 11%. * OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood

June’s Resale Market Eases into Summer

OTTAWA, July 5, 2023 - Members of the Ottawa Real Estate Board (OREB) sold 1,658 residential properties in June through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,493 in June 2022, an increase of 11%. June’s sales included 1,234 in the freehold-property class, up 10% from a year ago, and 424 in the condominiumproperty category, a 16% increase from June 2022. The five-year average for total unit sales in June is 1,881. “Although June’s transactions surpassed last year’s, the number of sales, average prices, and new listings declined on a week-to-week basis over the course of the month. Compounded by the typical summer decline in activity, the Bank of Canada’s interest rate adjustment at the beginning of the month may have also flattened the curve,” says Ottawa Real Estate Board President Ken Dekker. By the Numbers – Average Prices*: • The average sale price for a freehold-class property in June was $746,445, a decrease of 4% from 2022, but still on par with May  2023 prices. • The average sale price for a condominium-class property was $448,380, an increase of 2% from a year ago and up 1% over May  2023 prices. • With year-to-date average sale prices at $731,847 for freeholds and $432,885 for condos, these values represent a 10% decrease over 2022 for freehold-class properties and a 7% decrease for condominiumclass properties. “Supply is trending in the right direction. The increase in inventory is  encouraging and indicates sellers have confidence in the market. A growing resale housing stock will result in more selection for buyers and more sales,” Dekker suggests. By the Numbers – Inventory & New Listings: • June’s new listings (2,758) were 14% lower than June 2022 (3,212) and down 2% from May 2023 (2,822). The 5-year average for new listings in June is 2,802. • Months of Inventory for the freeholdclass properties has increased to 2.1 months from 1.9 months in June 2022 and 1.5 months in May 2023. • Months of Inventory for condominium-class properties has decreased to 1.4 months from 1.6 months in June 2022, although up from 1.3 months in May 2023. • Days on market (DOM) for freeholds stayed on par with last month at 23 days and increased to 27 days for condos compared to last month  (26 days). “We are looking forward to a strong second half of 2023 in terms of sales volume and prices compared to last year. Whichever side of the transaction you are on,  the advice of a professional REALTOR® who has their pulse on the week-to-week variabilities in Ottawa’s resale market  is priceless.” REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 3,336 properties compared to 2,919 last year at this time, an increase of 14%. * OREB cautions that the average sale price can be useful in establishing trends over time but should not be  used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.

Ottawa resale market heats up in May

OTTAWA, June 5, 2023 - Members of the Ottawa Real Estate Board (OREB) sold 1,939 residential properties in May through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,830 in May 2022, an increase of 6%. May’s sales included 1,477 in the freeholdproperty class, up 8% from a year ago, and 462 in the condominium-property category, a 1% increase from May 2022. The five-year average for total unit sales in May is 1,961. “Typically the highest-selling month, May’s transactions did not disappoint,” says Ken Dekker, Ottawa Real Estate Board President. “This month we saw the first year-over-year unit sales volume increase since February 2022. It is a promising year for sellers barring any interest rate adjustments, as we saw a correlated drop in sales every time there was an interest rate hike in 2022.” “However, with only five to six weeks of inventory, we are in a strong seller’s market. With the pent-up high demand and sales volume increasing, we are likely to see upward pressure on prices as demand continues to outstrip supply.” By the Numbers – Average Prices*: • The average sale price for a freeholdclass property in May was $745,902, a decrease of 7% from 2022, but still on par with April 2023 prices. • The average sale price for a condominium-class property was $442,859, decreasing 6% from a year ago. However, it marks a 2% increase over April 2023 prices. • With year-to-date average sale prices at $727,728 for freeholds and $428,394 for condos, these values represent a 12% decrease over 2022 for freehold-class properties and a 9% decrease for condominium-class properties. “We are not seeing steep price escalations yet. May’s average prices stayed on par with April’s, although prices are well over what we saw at the end of 2022. With demand mounting in Ottawa’s chronically undersupplied market, I expect the average sale price will surpass last year’s figures for a month over the same month in the latter half of 2023 again—provided we do not see interest rate hikes.” By the Numbers – Inventory & New Listings: • May’s new listings (2,822) were 9% lower than May 2022 (3,117) and up 32% from April 2023 (2,140). The 5-year average for new listings in May is 2,922. • Months of Inventory for the freeholdclass properties has increased to 1.5 months from 1.2 months in May 2022 but down from 1.9 months in April 2023. • Months of Inventory for condominiumclass properties has increased to 1.3 months from 1 month in May 2022, although down from 1.9 months in April 2023. • Days on market (DOM) for freeholds decreased from 27 to 23 days and 33 to 26 days for condos compared to last month. “Given our housing stock challenges, some neighbourhoods are again in multiple offer territory. REALTORS® have up-to-the-minute market data and are best positioned to help both buyers and sellers in this evolving competitive resale market.” REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 2,731 properties compared to 2,230 last year at this time, an increase of 22%. * OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.