Unofficial numbers estimated at our office, suggest the sales drop that occurred both in Ottawa (-21% fewer transactions vs 2021) and across the country in April, has continued in the first week of May with Ottawa sales falling 16.8% behind last May’s first week and 25% lower than 2019.
The combination of price levels and higher mortgage rates, each play a role plus some intangibles like buyer fatigue and uncertainty about future market conditions, are also perhaps factors.
We had previously noted that new mortgage advanced for first time buyers was off significantly, even last December, so if this trend has continued, it is also playing a role.
All this a time when it seems every politician running is promising to “do something to fix housing”. So stay tuned over the next 12-18 months, to see what further government “fixes” are being applied to a market that may already be correcting.
Price levels continue at a high level but are not as strong as they were in February this year when the average residential selling price was $853,615 and for the month of April this had eased to $829,318 or 2.8%. Residential prices are still higher year to date by 12.8%
Listing inventory remains low, though there was a slight increase in residential listing inventory at the end of April (9.8%) New listings in April, however, were down 12.8% vs April 2021.
It certainly appears that the fire is dampening in the hot real estate market, so buyers and sellers will have to be cognizant that conditions on the ground, may be different than what they had based their plans upon and be prepared to adapt to up to the moment market conditions.
The spring season is critically important to our real estate year here in Ottawa, with May as typically the busiest sales month of the year, followed by June and then April. While there is still time for the market to score gains, before the summer sales plateau, it looks like real estate may be in for a bumpy ride.
Hope we’re wrong on this but all signs seem to be pointing in this direction.
Give us a call to discuss your own particular situation and save big on our optional 3% commission fee for a full service MLS listing on www.realtor.ca (not intended to solicit those working with other Real Estate professionals)
Gord McCormick, Broker of Record
613-371-9691 mobile/text email: firstname.lastname@example.org