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Seven rate hikes in 2022! No wonder we see continued signs of a slowing market in November!
In November, Ottawa real estate board members sold 846 properties. That is a decrease of 42% from last year this time. Our five-year average is 1270 properties sold. However, it is normal we see the sales activity slow down this time of year. The interest rate hikes have clearly impacted the market. Buyers are cautious and unsure about taking action.
What are the average sale prices?
The average condominium sale price was $415 553 and that is a decrease of 4% from last year.
The average residential sale price was $680 031 and that is a decrease of 5% from last year.
Who's getting hit the most? First time buyers are experiencing the most difficulty getting into the real estate market. Even though prices have come down, the interest rate has impacted people’s purchasing power. As the rate rises, a potential buyer’s approval amount decreases. In addition, the stress test implemented when rates were at an all time low is still in effect and making it even harder to qualify.
Sellers-know that we're still averaging about 30 days on market and it will take some time to sell. Don't panic! Do the work to make sure your home looks its best and price it in line with the most recent sales (sales within the last 2 months).
Buyers-there's a saying right now, “date the rate, marry the house!” The rate is not here to stay. The house is a long-term investment and in Ottawa the real estate market has historically been a good investment to make.
Do you have real estate questions? Reach out! I would love to chat.
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