2022 YEAR END REAL ESTATE MARKET UPDATE FOR STITTSVILLE
STITTSVILLE HOUSING MARKET 2022 IN REVIEW
Stittsville has been one of the highest appreciating neighbourhoods in Canada since the beginning of the pandemic. With government workers allowed to work from home and many families looking for more space, the suburbs became the hottest real estate in town. Stittsville in particular was sought after because it has a great sense of community. Everything started to shift in early summer when interest rates started to rise. As the rates went up the market activity and prices declined. We went from having double digit offers on homes and selling for way above asking price to having sellers reducing their prices to adjust to the new market. The Bank of Canada continued with multiple interest rate hikes that immediately altered what buyers could afford. This put downward pressure on prices and we have seen a major change in market conditions. We went from an extreme sellers market to a balanced market in a very short period of time.
PREDICTION
I think the market is going to remain sluggish to start 2023. Especially if there is another interest rate hike. I do think real estate prices in our community are pretty close to their low point right now and that we will see a slight price gain in the second half of the year. Here are a few key indicators that will impact our market:
KEY INDICATORS
 |
Population Growth
One of the major key indicators is population. Canada’s pace of population growth remains the highest in the G7. Numbers from the most recent census in the Spring of 2021 has shown that to remain true, with Ontario, 5.8% outpacing the national average of 5.2%. Immigration is remaining the number one factor driving population growth. As you will see from the chart below, housing inventory in Ottawa is still on the decline. This again puts upward pressure on pricing, which has dropped from its peak in 2022 but is still on the increase overall. |
 Historic Ottawa Freehold & Condo Inventory Since 2004 |
Inventory
Supply is still a major issue in Ottawa. Many new construction projects were halted due to lower demand, high material costs, declining prices, and labor shortages. With less available on the new construction side of the market, more buyers will be looking at the resale market. Ottawa is a sought after and growing city. Long term housing supply is still an issue here that was talked about quite a bit in the early part of 2022. At some point we will get back to bidding wars and an active market again. Much will depend on this critical key indicator. |
 |
Bank of Canada Interest Rate and Inflation
This will be the most important factor in where our market goes. I can make all the predictions I want but if the Bank of Canada raises interest rates more than 50 basis points we will see an immediate decrease in prices in Ottawa. Personally I don’t see that happening. If anything I could see a .25% increase in the short term and then potentially rate decreases by late 2023. |
|
|
NEIGHBORHOOD HIGHLIGHTS
[1] All stats are based on MLS sales from January 1, 2021– December 31, 2021 vs January 1, 2022—December 31, 2022.
[2] Excludes condominiums, homes on leased land and homes under construction.
[3] All data courtesy of the Ottawa Real Estate Board MLS® System. The above information is believed to be accurate but warranted.
WE GO ABOVE AND BEYOND FOR OUR CLIENTS
We are so pleased that we were able to host more events this year! We kicked it off with our private showing of the movie Lightyear! It was great to have a packed house to watch a movie in a theatre again! My kiddos are already researching a good title for our next movie morning. We also had the opportunity to catch up with many of our clients at our 7th Annual Santa Party. This is our most anticipated client event of the year. It was so great to host everyone. We are already thinking about what we can do to make it even better next year. There is talk of the Grinch making a visit! We also continued our new annual tradition with our 3rd Annual Stittsville Food Bank Fundraiser, we partnered again with Maverick’s Donuts. We raised $2,000 again this year! Our mission is to create a raving fan service experience for every client and bring value long after our clients have bought or sold real estate. We are always looking for new ways to do this. We are excited about what we can do for you in 2023. If you have any real estate needs or know of anyone looking please keep our team in mind.
Ottawa Real Estate Information
Average sales prices are for 2022 based on MLS sales.
Combined is for all property classes. Arrows are gains from 2021.
