Ottawa Real Estate Market Update - January 2023

The January market may be off to a slower start in Ottawa than past years but, the spring market is around the corner.

I'm Liza Wilson. trusted real estate advisor, and I help families in the Ottawa area upsize their homes. Each and every month, I provide a summary of what’s happening in the Ottawa real estate market based on the data from the Ottawa Real Estate Board.

In January 2023, Ottawa Real Estate Board members sold 606 properties. The five-year average is just over 800 properties sold so it’s certainly a slower start to this year. The positive side to this is that buyers are being given the time to browse homes multiple times and think about their options before making a decision. We are also seeing conditions regularly again in offers.

If we look back at last January (2022), we were in the pandemic and inventory was at a record low combined with record low interest rates. This caused prices to shoot up quickly in the first few months of 2022. It’s important to remember these factors when we look at the average sale prices now because we are in a completely different situation. Inventory has improved and interest rates have increased causing the market to shift.

The average condominium sale price in January 2023 was $412 244 and that's a decrease of 8% from last year this time.

The average residential property sale price was $676 272 and that is a decrease of 12% from last year this time. It is important to note that in comparison to December 2022, meaning just a month ago, there has been a 3% increase in residential property sale prices.

Sellers: we are averaging 43 days on market right now so if you go to market, understand it can take time to sell your home. Create a plan with your real estate agent to make sure your home looks its best to attract potential buyers.

Do you have an investment property? An interesting note- January of 2022 to January 2023, there has been a 24% increase in the number of properties rented by Realtors. Investors are turning to real estate agents to help them find tenants and tenants are turning to real estate agents to find them properties.

As we head into February, I do want to mention that I am starting to see a few multiple offers happening again and that is a sign of spring demand returning. How will our spring real estate market be in Ottawa? My prediction is that the average price points for the residential homes will continue to increase over the next few months when buyers come out to find a home in spring months.

Have real estate questions? Reach out to me directly-I am happy to help.