June ‘23 Market Update
Greetings! I'm thrilled to share some insightful information about the latest developments in the Ottawa real estate market. In June, members of the Ottawa Real Estate Board (OREB) successfully sold 1,658 residential properties through the Board's Multiple Listing Service® (MLS®) System. This marks an 11% increase compared to June 2022 when 1,493 properties were sold.
Let's dive into the specifics of last month's sales. Out of the total, 1,234 were freehold properties, representing a 10% increase from the previous year. Additionally, 424 condominium properties were sold, experiencing a substantial 16% rise from June 2022. It's worth noting that the five-year average for total unit sales in June stands at 1,881.
While June's transactions outperformed June of 2022, it's important to mention that the volume of sales, average prices, and new listings declined on a week-to-week basis throughout the month. This trend may have been influenced by the Bank of Canada's interest rate adjustment at the beginning of June.
Now, let's take a closer look at the average prices for different property types. The average sale price for a freehold property was $746,445, representing a 4% decrease from 2022 but remaining consistent with May 2023 prices. On the other hand, the average sale price for a condominium property was $448,380, experiencing a 2% increase compared to the previous year and a 1% increase over May 2023 prices.
As for the year-to-date average sale prices, we observe a 10% decrease for freehold properties (currently standing at $731,847) and a 7% decrease for condominiums (currently at $432,885) compared to 2022. It's important to note that these values reflect the overall trend in the market and should not be interpreted as indicators of individual property value changes. Prices can vary significantly depending on the region or neighborhood of Ottawa.
Lets turn our attention to inventory and new listings. Before we get into any details I first want to explain how inventory levels are often discussed within the real estate sphere. Inventory levels are expressed in values of “months” for example 2 and a half months. This means that if the inventory levels are currently at 2 and a half months, then the market would be able to sustain itself for that long at it’s current rate of sales if listings were to suddenly scream to a halt. Now, onto the analytics! June saw 2,758 new listings, which is 14% lower than June 2022 and a 2% decrease from May 2023. The five-year average for new listings in June is 2,802. The total inventory for freehold properties increased to 2.1 months, up from 1.9 months in June 2022 and 1.5 months in May 2023. For condominiums, the months of inventory decreased slightly to 1.4 months from 1.6 months in June 2022, but it is up from 1.3 months in May 2023.
If you're wondering about the time it takes for properties to sell, the average days on market (DOM) for freehold properties remained consistent with the previous month at 23 days. However, condominiums experienced a slight increase to 27 days compared to 26 days in May 2023.
Looking ahead, we are anticipating a robust second half of 2023 in terms of sales volume and prices compared to last year. Whether you're considering buying or selling, don’t hesitate to reach out to us at the Nautilus Real Estate Team for guidance as we are always watching for the week-to-week fluctuations in Ottawa's resale market.
Remember, the average sale price is useful for tracking market trends over time, but it should not be solely relied upon to assess specific property values. Property prices can vary greatly depending on the neighborhood and other factors.
If you have any questions or are looking for expert guidance, reach out to us and we would be happy to set up a meeting with you to discuss any questions you may need answered.
Stay tuned for the July Update coming in August!
Janda and Alex
