April, 2022 Ottawa Real Estate Market Update

“April Residential Resales in Flux.” That's what the Ottawa Real Estate Board president titled her April market update so, let's find out why?

As a trusted real estate advisor to my clients, I help keep my sphere informed about the Ottawa real estate market. I specialize in helping families upsize their homes in the Ottawa area so they can get out of the “squish” and into more comfortable living for the whole family.

In April, Ottawa Real Estate Board members sold 1889 properties. Within that number, 1419 were in the residential class and 470 were in the condominium class. This is actually one of the weakest performing April’s for the number of properties sold. What is the cause?

There's a couple of factors impacting the market. First, the rising interest rates has changed what buyers can afford. They now qualify for less which has shifted the price point they are looking for a new property. In April, it was common for us to see an offer date posted and then disappear as a result of no offers received on offer day.

Another factor that could be contributing to the lower number of properties sold is the increase in inventory. Buyers have more choice so, the combination of rising interest rates with more inventory is providing a shift in the competition that we're seeing on properties listed for sale.

]The average condominium sale price was $473, 702 and that is an increase of 11% from last year. The average residential sale price was $829, 318 and that's an increase of over 12% from last year. The increase in prices remains strong in comparison to past years but, are we beginning to see that shift to a stabilizing market.

If you look back at my January, 2022 update, I mentioned that the Ottawa housing market started out very much the same as it did in January, 2021. There was a lot of demand and little supply which caused quickly rising prices. If you look at April, 2021 market update last year, we see a similar pattern now with the shift starting to a calmer market. We're going to see prices start to stabilize a bit more as we have rising inventory and these interest rates continue to increase.

Going forward, if you are a buyer, understand that there are opportunities out there for you to get a home in comparison to the Ottawa market in March. If you are a seller, know that there can be a plan A and if that doesn't work there's a plan B to get your home sold. An experienced real estate agent, like myself, will make all the difference when it comes to having success with your real estate needs.

Have a question? Let’s chat!

*Date taken from Ottawa Real Estate Board April market update*