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“Quiet December caps off Tumultuous Year” was the title of the Ottawa Real Estate Board's market update for December, 2022. Let’s dive into the details of what made 2022 a year to remember in the Ottawa real estate market.
I'm Liza Wilson, trusted real estate advisor, and I help families in the Ottawa area make their best move.
It was certainly a year to remember in real estate. We started off with record low interest rates at the beginning of 2022 and an extreme low in inventory. No homes to buy and almost “free money” meant home prices skyrocketed. As rates started to increase and inventory started to improve, the prices started to fall. From a strong seller’s market to a more balanced market at the end of the year, there has been a dramatic shift in a short amount of time.
December is normally a quieter time in the market as the cold weather sets in and the holidays keep many occupied. However, this past December was certainly slower when we look at the average sales in past Decembers. The five-year average for the number of properties sold is actually 775 and this past December we saw 601 properties sold.
What are the average prices?
The average condominium sale price was $434 973 and that is an increase of 9% from last year this time. Condominiums, especially condo townhomes have become an attractive option that is more affordable to first time buyers so this continues to be a property of interest.
The average residential property went for $655 839 and that is a decrease of 7% from this time last year.
The bank of Canada's next interest rate announcement comes January 25th so we shall see what happens with that announcement. Projections say by the end of 2023 we could see decreased interest rates. If that happens, my prediction based on what has been happening is that prices will go up again.
If you are a buyer, talk to your mortgage broker and see if now is a good time to buy. Remember, the rates are temporary! The house is forever! If you can lock in a home at a lower price point even if it is at a higher rate, it can still be a good option for several reasons. First, you can renegotiate your rate in a few years and after that time you will have less of a lump sum owing than others who paid higher home prices at lower rates. Second, you will have a lower deposit to make because the homes are considerably lower than where we were in the spring of 2022. Are you ready to benefit in this market?
If you are a seller, get the advice of an awesome realtor, like myself, so that we can develop a plan to get your home sold. It’s a team effort to achieve the best results.
If you have real estate questions, reach out to me directly! I’d love to hear from you!
Happy New Year!