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It's March madness time in the Ottawa real estate market!
Spring tends to be the peak of the prices and activity for the real estate market here in Ottawa. The March statistics show that our spring market has arrived.
As a trusted real estate advisor for my clients, I like to keep my contacts informed about the market so they can make informed real estate decisions.
I specialize in helping families in the Ottawa area upsize their homes and this past March we were out hunting for those larger family homes that would accommodate everyone in the family.
In March, Ottawa Real Estate Board members sold 2011 properties. Residential properties counted for 1493 of that number and 518 were condominiums. The five-year average for properties sold is 1792 so, the activity level is well above that number. Hence, my reference to calling it “March Madness”. In March, we saw 42% more transactions than we did in February and that's because spring brings out the buyers! As the weather changes, buyers become interested in looking for a new home and sellers know it’s a great time to sell because the demand is high.
Most families I am working with like to look at purchasing a home in the spring with the intention of moving in the summer months. It allows them to get settled before the next school year begins.
What is the average sale price of properties in March? The average condominium sale price was $479,405 and that is an increase of 10% compared to last year. The average residential sale price was $853, 615 and that is an increase of 13% from last year. The lack of inventory continues to put pressure on prices but, can that pressure be stopped?
So far, we've seen the interest rates steadily climbing at small increments. Also, the provincial government put out the “More Homes for Everyone” act as a step to increase home affordability for Canadians. This is one step being taken to address the home shortage. Within the act, the government has said it will be taking measures to get homes built faster. In addition, the non-resident speculation tax has been increased to 20% so, if you're a non-resident, the tax you'd have to pay if you're purchasing a property here will be higher than before. Is this enough to curb the curve of rising home prices? It will help but, it will take some time so, for now, we are still in a seller’s market in the Ottawa area.
If you are a seller, continue to do the absolute most to make your home look its best when you're going to sell because that will get you more money in your pocket. If you're a buyer, don't get too discouraged about the competition you may face when looking. You just have to be persistent and keep looking. Not every house is the same and not everything sells for over asking price. Working for my clients to achieve their real estate goals is a joy of mine so, reach out if you would like to chat.
*Data quoted from the Ottawa Real Estate Board March, 2022 report*
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