When looking back on last year, it’s important to know that February 2022 represented the absolute peak of our local real estate market. We had the perfect storm of low-interest rates, high demand and extremely low inventory which of course caused prices to spike. This year our market is in a very different situation. We are very much a balanced market that can stay there if interest rates stay the course. If they rise we will see us move toward a buyers market.
Our current market is a much more reasonable place to buy and sell real estate. From what I’m feeling on the ground is that buyers are starting not only to look at properties more but are also engaging and making offers. Just this last week I noticed a few listings that have been on the market forever finally sell. I think this is indicative of more buyers feeling comfortable that we are indeed at the bottom of this market cycle.
There were 855 residential properties were sold in February 2023 compared with 1,411 in February 2022, a decrease of 39%. February’s sales included 633 in the freehold-property class, down 42% from a year ago, and 222 in the condominium-property category, a decrease of 31% from February 2022. The five-year average for total unit sales in February is 1,157.
If the Bank of Canada holds interest rates steady, buyers will have more certainty to work with as we head into the spring market.
The average sale price for a freehold-class property in February was $708,968, a decrease of 15% from 2022. However, it marks a 5% increase over January 2023. The average price increase for freeholds over January could be an indicator that buyers have normalized to the current interest rates. And perhaps, it’s a glimmer of more activity to come in the months ahead.”
The average sale price for a condominium-class property was $410,927, decreasing 12% from a year ago.
With year-to-date average sale prices at $695,086 for freeholds and $411,449 for condos, these values represent a 14% decrease over 2022 for freehold-class properties and a 10% decrease for condominium-class properties.
Months of Inventory for the freehold-class properties has increased to 2.8 months from 0.7 months in February 2022.
Months of Inventory for condominium-class properties has increased to 2.5 months from 0.7 months in February 2022.
February’s new listings (1,366) were 22% lower than February 2022 (1,762) and up 3% from January 2023 (1,323). The 5-year average for new listings in February is 1,632.
Days on market (DOM) for freeholds decreased from 43 to 37 days and 47 to 43 days for condos compared to last month.
Every neighbourhood in Ottawa is different and will have trends that are unique to your area. If you want to know what your home is worth please feel free to get in touch with our team. We are always happy to help.
Here is the most recent installment of our new monthly value-added feature, the Suburban Statistics Series. This series showcases statistics for the 5 largest urban neighbourhoods in Ottawa.
As Ottawa is such a spread-out city it’s great to see the variances from area to area. All of these statistics are based on MLS OREB sales from January 1, 2022, to February 28, 2022, over January 1, 2023, to February 28, 2023.
With interest rates potentially holding steady the Ottawa market may be on the verge of heating up. Buyers are still super cautious but there are plenty of well-qualified buyers in the marketplace right now. Judging by full open houses and good showing activity. The challenge is that no buyer wants to make a large purchase now only to see things further reduced in 6 months from now. So many are just waiting. The ones that are making offers may just be rewarded. Warren Buffet always said to buy while others are weary. The thing about real estate is that we know we are way off the peak and the chances are that in the next few years we will be up and over the earlier highs of 2022.
If I was to sum up our market in one word it would be cautious. The numbers reflect that. The price of a residential home is down 12% from January 2022, down to $676,272, condo pricing is down as well, 8% from January 2022, sitting at $412,244. In terms of units they are also down from January 2022, 30% down for residential and 46.9% down for condo units sold.
As always please feel free to reach out to our team, if you have any questions, or if you would like to know what is happening in your neighbourhood!
Here is the most recent installment of our new monthly value-added feature, the Suburban Statistics Series. This series showcases statistics for the 5 largest urban neighbourhoods in Ottawa.
As Ottawa is such a spread-out city it’s great to see the variances from area to area. All of these statistics are based on MLS OREB sales from January 1, 2022, to January 31, 2022, over January 1, 2023, to January 31, 2023.
The Bank of Canada announced a small interest rate hike this week, up .25%, seeing the rate now sitting at 4.5%. This is the smallest of the rate increases since last March. I don’t think it will make a big impact in Ottawa. What this will do is bring further stability to our market and in turn help buyer confidence.
The overall goal of the Bank of Canada is to dampen inflation through a series of interest rate hikes. This campaign of rate increases to curb inflation has been ongoing since March 2022. This is the eighth time in less than a year that the rate has been hiked. Let’s hope this is the last of it.
The ideal Administrator for The Chris Scott Team will be someone who already has Real Estate industry experience or an administrative position background. This person would be interested in the operations and administrative aspects of the business, rather than sales. If the idea of implementing systems, building out a structure, and creating organization energizes you, then this may be the perfect fit! Our team is committed to creating a raving fan service experience for every client.
This individual will also manage the entire contract-to-close process efficiently and effectively to ensure all files close on time, creating a seamless experience for clients and all parties involved.
This person must provide exceptional customer service and be a true team player! Our mission is to provide a raving fan service experience for every client.
Responsibilities
Manage client systems to ensure a great client experience
Manage CRM’s
Manage and oversee the execution of projects for the Team Lead
Assemble pre-listing and pre-buyer packets to prepare Agents for appointments
Manage administration and contract to close process of the team’s real estate transactions
Be the first point of contact in handling all inquiries and concerns
Care of front and back-office support, getting listings live on the market
Prepare paperwork for lead agent
Help with client events
Qualifications
Prior Real Estate industry experience is an asset
Real Estate license an asset
Tech-savvy is a must
Proficiency in Microsoft Excel, Publisher, Canva and social media would be beneficial
Strong written and verbal communication skills
Exceptional organizational skills are a must! This is very important!
Learning-based
Highly detail-oriented
Must be able to work in our Kanata office weekdays 9-5 (full-time)
Compensation
Range is $42,000-$50,000 plus bonus or higher depending on experience.
Please provide a cover letter outlining your experience and interest in this position. Please email resume and cover letter to info@chrisscott.ca
This past year was one that I will not soon forget! In the beginning of January I remember one of our team listings selling with 20 plus offers on it for an absolutely surprisingly high price. The ensuing few months brought more of the same. A frenzy like I have never seen in our local market before and may not see again. Short supply and insatiable demand put immense upward pressure on prices. Buyers were desperate to get in on this rising market that was also fueled by historically low interest rates and tight supply. It was the perfect storm of economic conditions that led to this unprecedented market. However, the dark clouds were circling by late Spring. Inflation was starting to get out of control and the Bank of Canada needed to act with interest rate hikes to start reining it in. Every rate hike chipped away at our hot market until finally their mission was accomplished by early Fall and prices were on a steady decline with consumer confidence and affordability becoming major issues. There is so much to consider when thinking about where the market will go from here. To understand it we must look at the key indicators that will all have a role to play in where our market goes from here.
Average sales prices are for 2022 based on MLS sales.
Combined is for all property classes. Arrows are gains/losses from 2021.
OTTAWA REAL ESTATE REPORT
FORECAST 2023
I think the Ottawa real estate market will have the opposite trajectory of 2022. Where the market was hot early in 2022 I think the market will get off to a sluggish start to the year. By Spring the market will be much more active. Lots of buyers who put the brakes on last year will see the market stabilize and be more confident to buy. By the Fall I could see price increases and more activity in the market. Much will depend on interest rates and inflation. One thing is for sure. It will be an interesting year in our local housing market.
This is where I get my crystal ball out and try to figure out where our local market goes from here. I believe that Canadian home prices will decline in the next 12 months a further 4-6% over 2022. However, I think Ottawa will weather the storm and actually see a slight increase in prices in 2023. Below you will see a few points to consider on our market and economy that will play a role in where we go from here.
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.
Based on OREB RES & CON MLS Sales | 2023 Prediction
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Ottawa Real Estate Board Trend Analysis – Residential Property Class
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.
Here is the second installment of our new monthly value-added feature, the Suburban Statistics Series. This series showcases statistics for the 5 largest urban neighbourhoods in Ottawa.
As Ottawa is such a spread-out city it’s great to see the variances from area to area. All of these statistics are based on MLS OREB sales from January 1, 2021, to December 13, 2021, over January 1, 2022, to December 13, 2022.
The Ottawa resale market has continued to cool this past month. Sales are down by 42% over November of last year. With average prices down 5.2 % in the same period. Important to note however prices are still up YTD by 7%.
The decline in sales volume is concerning. Buyers are just waiting to see where the economy and real estate market are going before making a purchase. The interest rates have gone up another 50 basis points which will freeze out some buyers while others may start looking in different price ranges to make it work. All to say homes are still changing hands just at a much slower pace. The average time a home stays on the market is now 50 days. For context, it was 25 last November.
With the Bank of Canada saying they may be done with rate hikes now might be a good time for buyers to execute on their purchases. Prices are reasonable and buyers have some negotiating power. I do think we will get off to a sluggish start in 2023 but when the economy performs better than expected hopefully, we can get things back on track for a very balanced market that will slightly benefit buyers.
As a new monthly value-added feature, we present the Suburban Statistics Series. Each month we will present statistics for the 5 largest urban neighbourhoods in Ottawa.
As Ottawa is such a spread-out city it’s great to see the variances from area to area. All of these statistics are based on MLS OREB sales from January 1, 2021, to November 8, 2021, over January 1, 2022, to November 8, 2022.
