2023 – Page 2 – Ottawa Real Estate Board

March Resales: Signs of Spring Surge Sprouting

Members of the Ottawa Real Estate Board (OREB) sold 1,194 residential properties in March through the Board’s Multiple Listing Service® (MLS®) System, compared with 2,003 in March 2022, a decrease of 40%. March’s sales included 893 in the freehold-property class, down 40% from a year ago, and 301 in the condominium-property category, a decrease of 42% from March 2022. March sales transactions increased 40% over February. The five-year average for total unit sales in March is 1,698.

“The recent rise in transactions is a sign of typical spring activity, even if we’re behind the pandemic peaks of 2022. As spring unfolds, so too will a clearer picture of Ottawa’s balanced market state,” says Ottawa Real Estate Board President Ken Dekker.

By the Numbers – Average Prices*:

The average sale price for a freehold-class property in March was $710,070, a decrease of 17% from 2022. However, it marks a 0.2% increase over February 2023. Average freehold prices have climbed approximately 8% during Q1 2023 over December 2022’s market low.
The average sale price for a condominium-class property was $418,670, decreasing 13% from a year ago, but still a 2% gain over February 2023.
With year-to-date average sale prices at $701,837 for freeholds and $414,698 for condos, these values represent a 16% decrease over 2022 for freehold-class properties and an 11% decrease for condominium-class properties.

“As evidenced by the recent climb in freehold prices, Ottawa’s resale market is stabilizing along with the interest rate. Condos remain steady due to their lower price point, there’s more affordability based on the current interest rate structure. Prices are certainly headed in the right direction—if you are looking forward.”

By the Numbers – Inventory & New Listings:

Months of Inventory for the freehold-class properties has increased to 2.3 months from 0.6 months in March 2022.
Months of Inventory for condominium-class properties has increased to 2.8 months from 0.6 months in March 2022.
March’s new listings (2,089) were 21% lower than March 2022 (2,632) and up 53% from February 2023 (1,366). The 5-year average for new listings in March is 2,474.
Days on market (DOM) for freeholds decreased from 37 to 34 days and 43 to 39 days for condos compared to last month.

“Well-priced and well-prepared homes are selling. REALTORS® have up-to-the-minute statistics to ensure sellers are positioning themselves at the current market value based on recent sales and hyper-local market comparisons. Buyers can benefit from the same data along with their negotiation expertise to guarantee they are receiving the best value for their dollar.”

REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 1,599 properties compared to 1,291 last year at this time, an increase of 24%.

* 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 Real Estate Board Statement on the 2023 Federal Budget

Housing, and the challenges faced by Canadians with respect to housing, has been a major theme in headlines across the country for a number of years. REALTORS® of the Ottawa Real Estate Board (OREB) and throughout Canada have long been advocating for measures to alleviate what was a growing concern — the housing supply shortage.

Commenting on the housing elements of Budget 2023 cannot be done without looking back at last year when the federal government formally recognized that a chronic shortage of housing supply is at the heart of the housing affordability crisis. Budget 2022 recognized that housing policy is economic policy. It’s not a surprise then with last year’s lofty goals that housing investments for 2023 are mostly re-announcements, re-commitments, and status updates on not-yet-implemented measures, such as the Home Buyers’ Bill of Rights.

It is encouraging to see that the budget shows a concerted effort toward increasing supply across the housing continuum. For example, the government’s intention to support reallocating funds from the National Housing Co-Investment Fund’s repair stream to its new construction stream.

We’re also happy to see a commitment to ensuring that Canadians have fair and equitable access to relief measures appropriate to the circumstances they’re facing with respect to mortgage financing. We’ve long been in favour or extending amortization payments and welcome the suggestion of adjustment payment schedules and the authorization of lump-sum payments.

Housing is a basic human need, and we look to the federal government to take a leadership role in getting Canadians into affordable homes. We recognize, of course, that sustainable action from all three levels of government is the only way to impact housing policy meaningfully.

Budget 2023 is another step in the right direction. The investments that will be made are considerable, but they are not sufficient to address the housing supply crisis.

With that said, OREB and our Member REALTORS® will continue to advocate for effective solutions to the housing crisis and supply shortages. We’ll continue to advocate for a permanent national housing round table that convenes the various authorities, builders, real estate professionals, Indigenous partners and civil society organizations to ensure that budget items, like the Housing Accelerator Fund, are implemented as effectively as possible.

Resale Market Stabilizes in February with a Glimmer of Hope for Buyers and Sellers Alike!

Members of the Ottawa Real Estate Board (OREB) sold 855 residential properties in February through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,411 in February 2022, a decrease of 39%. February’s sales included 633 in the freehold-property class, down 42% from a year ago, and 222 in the condominium-property category, a decrease of 31% from February 2022. The five-year average for total unit sales in February is 1,157.

“We’re going to see declines in transactions and prices when we compare current figures to last February — the height of the pandemic resale market activity,” says Ottawa Real Estate Board’s President Ken Dekker. “On the other hand, with the Bank of Canada holding interest rates steady, prospective buyers have more budget certainty to work with as we head into the spring market.”

By the Numbers – Average Prices*:

The average sale price for a freehold-class property in February was $708,968, a decrease of 15% from 2022. However, it marks a 5% increase over January 2023.
The average sale price for a condominium-class property was $410,927, decreasing 12% from a year ago.
With year-to-date average sale prices at $695,086 for freeholds and $411,449 for condos, these values represent a 14% decrease over 2022 for freehold-class properties and a 10% decrease for condominium-class properties.

“The average price increase for freeholds over January could be an indicator that buyers have normalized to the current interest rates. And perhaps, it’s a glimmer of more activity to come in the months ahead.”

By the Numbers – Inventory & New Listings:

Months of Inventory for the freehold-class properties has increased to 2.8 months from 0.7 months in February 2022.
Months of Inventory for condominium-class properties has increased to 2.5 months from 0.7 months in February 2022.
February’s new listings (1,366) were 22% lower than February 2022 (1,762) and up 3% from January 2023 (1,323). The 5-year average for new listings in February is 1,632.
Days on market (DOM) for freeholds decreased from 43 to 37 days and 47 to 43 days for condos compared to last month.

“A decrease in the days on market, paired with fewer new listings entering the market, is good news for sellers,” says Dekker. “However, if that trend continues to impact our supply stock and we don’t get more inventory, our otherwise balanced market could swing back into seller’s territory — but it’s too early to predict.”

“The best advice for sellers and buyers in today’s market is to pay close attention to the comparison and competition insights only a REALTOR® can offer. Ottawa is made up of many micro-markets, and neighbourhood-level data is vital to standing out and closing deals.”

REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 995 properties compared to 800 last year at this time, an increase of 24%.

Resale Market Starts Slow as Buyers Remain Cautious

Members of the Ottawa Real Estate Board (OREB) sold 606 residential properties in January through the Board’s Multiple Listing Service® (MLS®) System, compared with 933 in January 2022, a decrease of 35%. January’s sales included 460 in the freehold-property class, down 30% from a year ago, and 146 in the condominium-property category, a decrease of 47% from January 2022. The five-year average for total unit sales in January is 819.

“January’s marked slow down in unit sales over 2022 indicates potential home buyers are taking their time,” says OREB President Ken Dekker. “While last month saw the culmination of the succession of interest rate hikes announced by the Bank of Canada, affordability remains a factor. They may be waiting for a shift in listing prices. They’re being cautious in uncertain conditions.”

By the Numbers – Average Prices*:

The average sale price for a condominium-class property in January was $412,244, a decrease of 8% from 2022.
The average sale price for a freehold-class property was $676,272, decreasing 12% from a year ago.

“Despite the decrease in average prices, the market should not be considered on a downward slide,” says Dekker. “A hyper COVID-19 seller’s market is now leveling out to our current balanced market state.”

“On a positive note, in comparison to December’s figures, January’s average price of freehold properties increased by 3%. The average price of condos did fall by 5% compared to December but condo pricing tends to fluctuate more due to the small data set.”

By the Numbers – Inventory & New Listings:

Months of Inventory for the freehold-class properties has increased to 3.8 months from 0.9 months in January 2022.
Months of Inventory for condominium-class properties has increased to 3.8 months from 0.8 months in January 2022.
January’s new listings (1,324) were 16% higher than 2022 (1,142) and up 89% from December 2022 (699). The 5-year average for new listings in January is 1,233.

“Ottawa’s inventory and days on market figures are typical for a balanced market and another sign that buyers are no longer racing to put in an offer,” says Dekker. “The increase in new listings and supply is a boon for home buyers, who now have more selection and the ability to put in conditions at a less frantic pace. REALTORS® are an essential resource in finding the right property for the right buyer. On the other side of the transaction, REALTORS® can help sellers with hyper-local insights about how to sell in their neighbourhood at a time when pricing is key.”

More people are turning to REALTORS® for help renting properties — 509 this month compared to 410 in January 2022, an increase of 24%. “Even with the increase in housing stock, the tighter rental market is another indication that affordability is keeping some potential buyers on the sidelines.”

Ottawa Real Estate Board’s 2023 President and Board of Directors

Members of the Ottawa Real Estate Board (OREB) are welcoming a new Board of Directors slate who have been elected to represent more than 3,900 REALTORS® for 2023. The new board will be comprised of 2023 President Ken Dekker, Past President Penny Torontow, President-Elect Curtis Fillier, and Vice-President Paul Czan. Joining them are directors Fred Crouch, Tami Eades, Laura Finlay, Eric Kalbfleisch, Michael Lewicki, Tony McDermott, Jake Prescott, Matt Richling and Ralph Shaw.

Members of the Ottawa Real Estate Board (OREB) are welcoming a new Board of Directors slate who have been elected to represent more than 3,900 REALTORS® for 2023.

The new board will be comprised of 2023 President Ken Dekker, Past President Penny Torontow, President-Elect Curtis Fillier, and Vice-President Paul Czan. Joining them are directors Fred Crouch, Tami Eades, Laura Finlay, Eric Kalbfleisch, Michael Lewicki, Tony McDermott, Jake Prescott, Matt Richling and Ralph Shaw.

“No matter what’s happening in the market, there are consumers who need to buy or sell a home, rent a property, or buy, lease or sell a commercial space or business,” says President Ken Dekker. “And now more than ever, consumers need an experienced and expert REALTOR® to help them navigate these fluctuating markets. I’m excited to work with OREB to be the leading authority on real estate matters and represent our dynamic real estate professionals. It also comes with great responsibility to advocate for better consumer protections, enhanced regulatory oversight and elevated standards for the profession.”

A real estate professional for nearly 30 years, Ken founded his own brokerage and is a published author. Ken has been volunteering with OREB since 2008, lending his time and enthusiasm to the board of directors and several committees including arbitration, government and community relations, and finance and audit.

“REALTORS® are leaders in our community and this year will be pivotal,” says Ken. “Another element of our consumer advocacy efforts is driving better housing policy. Ottawa has a housing crisis. We must be loud, engaged and innovative about the chronic insufficiency of supply, affordability and sustainability. I look forward to working with and supporting our Members as we help build a better community for all.”

Back row: Paul Czan, Tami Eades, Fred Crouch, Michael Lewicki, Eric Kalbfleisch
Middle row: Jake Prescott, Laura Finlay, Ralph Shaw, Tony McDermott, Matt Richling
Front row: Curtis Fillier, Ken Dekker, Penny Torontow

Quiet December Caps Off Tumultuous Year

Members of the Ottawa Real Estate Board (OREB) sold 601 residential properties in December through the Board’s Multiple Listing Service® (MLS®) System, compared with 857 in December 2021, a decrease of 30%. December’s sales included 466 in the residential-property class, down 22% from a year ago, and 135 in the condominium-property category, a decrease of 48% from December 2021. The five-year average for total unit sales in December is 775.

2022 in Review
Residential and condo resales in 2022 totaled 15,288, compared with 20,289 in 2021, decreasing 25%. Total sales volume in 2022 was approximately $10.5B compared to $13B in 2021.

“Even with the normal seasonal slowdown, December’s performance was in stark contrast to the very active resale market that opened 2022,” says Ken Dekker, OREB’s newly installed 2023 President. “As interest rates and inflation both climbed, buyers retreated to the sidelines and began taking a wait and see approach. However, while it’s quieter than the frantic pace we experienced in 2021, it is now a balanced market.”

By the Numbers – Average Prices*:

The average sale price for a condominium-class property in December was $434,973, an increase of 9% from 2021.
The average sale price for a residential-class property was $655,839, decreasing 7% from a year ago.
With year-to-date average sale prices at $769,623 for residential units and $453,770 for condominiums, these values represent a 7% increase over 2021 for residential-class properties and an 8% increase for condominium-class properties.

“Although market activity tapered off in later 2022, there was an immense amount of activity in the spring at high prices,” says Dekker. “This will be an important caveat to consider as we begin comparing 2023 numbers to the previous year.”

By the Numbers – Inventory & New Listings:

Months of Inventory for the residential-class properties has increased to 3.7 months from 0.9 months in December 2021.
Months of Inventory for condominium-class properties has increased to 3.9 months from 0.9 months in December 2021.
December’s new listings (699) were 17% higher than 2021 (600) and down 56% from November 2022 (1,598). The 5-year average for new listings in December is 662.

“The leading economic force behind Ottawa’s rapid appreciation in the past five years is chronic supply insufficiency,” says Dekker. “It intensified during the pandemic as prospective purchasers capitalized on incredibly low interest rates. Today’s higher rates are slowing down building projects, which exacerbates the low supply issue.”

2023 Lookahead
“Since Ottawa is made up of hyper-local markets, it is a difficult ecosystem to forecast,” says Dekker. “Plus, there are a multitude of factors influencing a changing economic environment these days that will dictate how much activity the resale market will see in 2023. REALTORS® have access to expert insights and industry resources that can help buyers and sellers navigate the complexities.”

REALTORS® also help with finding rentals and vetting potential tenants. OREB Members have assisted clients with renting 6,105 properties this past year compared to 4,813 in 2021.