Ottawa sales drop 41% during month of October 2022
The number of sales transactions fell 41% during the month of October vs 2021, as continuing mortgage rate increases continue to keep buyers on the sidelines, especially first time buyers and investors. We are not alone, of course, as similar pain is being felt in most real estate markets. Montreal was down 35% in October, Vancouver 45.5% and Toronto 49%.
On a year to date basis in Ottawa, the number of overall transactions is down 22% for residential properties and 17.9% for condos.
Average residential selling price tanks 20.6% since March:
From our peak selling prices back in March of this year, the average selling price in October has plummeted $175,742 or 20.6%. The average condo is down $71,457 (14.9%) These price drops are unprecedented in Ottawa sales history. (as was the price run up from mid-2020 until March of this year)
Residential listing inventory doubles: (not such a bad thing!)
The amount of residential listing inventory available for sale was 97.2% higher at the end of October this year than at the end of October 2021. Condo inventory was up 38.4%.
This inventory growth is not a result of a huge influx of new listings but more a factor of the unit sales decline and a return to more normal inventory levels. Inventory supply levels a year ago where uncharacteristically low, which helped drive prices higher with the high demand and much lower mortgage levels.
Balanced market vs buyer’s market?
We have been in the middle of the “balanced” market range for several months, according to the sales to new listings ratio. In October, this ratio came in at 48.2% based on 987 and 2047 new listing. A balanced market is said to exist when this ratio is between 40-60%. So October 22 results indicate we are in a balanced market vs the runaway sellers’ market that existed a year ago, when the same ratio was 85.6%.
The current 7 day ratio (as of Nov 4th, 2022) works out to only 35.4% which would suggest a buyer’s market (anything below 40%), so this is a metric worth watching, as sales continue to dwindle and we also enter the seasonal sales dip which normally occurs mid to late November to mid-February, when activity normally starts to revive ahead of the spring market.
Now is the time to start planning your 2023 sale or purchase:
Late fall is a great time to have a discussion about buying and selling objectives and feasibility. We are happy to research your individual circumstances and make some recommendations on listing prep and selling expectations. Feel free to give us a call at 613-435-4692 or 513-371-9691
Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage email@example.com