July ‘23 Market Update

Positive Gains in July Resale Market: A Homebuyer's Perspective

Let’s dive right into the July 2023 market update.

Sales Volume and General Thoughts

In July ‘23, the Ottawa Real Estate Board (OREB) reported robust sales with 1,263 residential properties changing hands via the MLS® (Realtor.ca). This reflects a 15% increase when compared to the 1,102 properties sold in July ‘22. 979 of these properties were freehold, marking an 18% increase from the previous year. Condominiums saw a 6% increase over July ‘22 with 282 sales. Over the last 5 years, the month of July has seen an average of 1,621 sales per year. This shows a general slowdown from the hectic markets during the pandemic.

The President of OREB, Ken Dekker, believes that consumers during July had continued confidence in the market despite the 0.25% interest rate increase. Janda and I are a little more sceptical of the market. Within our personal social spheres we haven’t encountered a plethora of buyer confidence in reference to the average Canadian. The markets this year have been relatively unpredictable, largely in part due to interest rate hikes. Should rate hikes continue I can foresee buyer confidence waning further.

Average Sale Values

For freehold-class properties, the average sale price in July was $754,188, reflecting a notable 5% increase from ‘22. Additionally, it showed a 1% uptick compared to June ‘23 prices.

Condominium-class properties saw average sale price of $435,094, an impressive 2% increase from the previous year. This price is however slightly down by 3% from June ‘23 prices.

YTD average sale prices currently stand at $735,103 for freeholds and $433,447 for condos. This represents a 9% decrease for freehold-class properties and a 6% decrease for condominium-class properties compared to the same time of year in ‘22.

Inventory Count

July's new listings amounted to 2,234, which were 6% lower than July ‘22 (2,364) and down 19% from June ‘23 (2,755). The five-year average for new listings in July is 2,336. Freehold-class properties’ inventory decreased to 2.7 months, down from 2.9 months in July 2022, but up from 2.1 months in June 2023. Condominium-class properties’ inventory decreased to 2.3 months from 2.5 months in July 2022 but increased from 1.4 months in June 2023.

Total days on market (DOM) has increased to 26 days from 20 days in June ‘23. Condos have also seen an increase in days on market landing on 28 days compared to the 20 in June.

Janda and I have personally experienced Seller’s whos expectations are that of the crazy markets of the pandemic. The general hum from other real estate professionals and a quick look at the increase in DOM indicates we aren't the only ones experiencing this. Multiple offer situations can and still will happen if the property is priced appropriately, but this type of behaviour will continue to cool with each incremental interest rate hike. Keep in mind that the value of your property is what the market is willing to pay for it. To all of the Homeowners who wish they sold in April of ‘22: the market is cooling. Remember for your average buyer it’s also a lot more expensive to make the same purchase today as it was even a year ago.

I hope these stats and the accompanying ramble were useful to you. If you’d like to talk more about how the market is behaving or perhaps want help navigating it in order to figure out your next step - don’t hesitate to reach out to either Janda or I and we would be happy to help you. 

Keep in mind that:

A Friendly Reminder: OREB cautions that while the average sale price is useful for tracking trends, it should not be the sole indicator of specific property values. This average is based on the total dollar volume of all properties sold, and actual prices can vary significantly from one neighbourhood to another.

Stay tuned for more real estate updates and insights right here. We're committed to speaking frankly about Ottawa's ever-evolving real estate landscape. There are many details that go into forming our opinions on the market but unfortunately not all of them are able to make it into this article. If you ever feel like you need clarification, again, don’t hesitate to contact us.

See you for August!

- Alex