Ottawa Real Estate Market Update-September, 2022

Buyer stress test, inflation, higher interest rates and more inventory…… what did we think was going to happen with the prices?

I'm Liza Wilson, trusted real estate advisor, and I specialize in helping families in the Ottawa area upsize their homes and their lives. Check out my monthly Ottawa market update.

September, 2022, shows continued signs of a slower market than past years. We saw a 33% decrease in the number of properties sold with just under 1100 properties being sold this September compared to over 1600 last year this time.

It appears prices are stabilizing. The average price of a condominium was $450,987 and that is an increase of 6% from last year. The average price of a residential property was $706 658 and that's up 0.5% from last year.

What's going to happen going forward? If inventory continues to rise, it gives buyers more time to look at the options and weigh out their decision. Many buyers are being impacted by the stress test. Remember that the stress test was implemented by the government when interest rates were at a record low. It made sense to have the stress test in place to ensure people could still afford their homes if the rate increased. However, if the rates are higher now, having the stress test doesn’t make as much sense. It is making it harder for first time buyers to qualify when they have to qualify at the stress test rates of around 7-7.5%. It will be interesting to see if this measure continues to stay in place as the numbers fall for the properties sold.

There has been an increase in the number of rentals real estate agents have been doing in the Ottawa area. Real estate agents can either help find tenants for landlords or help tenants find homes. If buying becomes more challenging, people will be renting for longer and that means more renters are looking for a home. If you have equity in your home and you've ever thought about having an income property, it’s a good time to have a chat. You could be using the equity in your home (not your cash) to purchase a property when the selling prices are down. It gives you the opportunity to have tenants pay down the mortgage while you benefit from the value and equity increasing.

*Data taken from Ottawa Real Estate Board monthly market statistics