Ottawa's Resale Housing Market Hits a Speed Bump in August, Supply Challenges Loom
The Ottawa real estate market, like many others across the country, has been navigating through a period of fluctuation and adjustment. As we analyze the data for August 2023, we observe both subtle shifts and steady trends in this dynamic market.
Freehold-Class Properties: The average sale price for freehold-class properties in August 2023 stood at $709,739, marking a modest increase of 0.5% compared to the same month in 2022. However, it's important to note that this figure represented a 5.6% decrease from July 2023 prices. This suggests that while the market maintained relative stability year-over-year, there was a noticeable cooling off compared to the previous month.
Condominium-Class Properties: Condominiums, a popular housing choice for many, posted an average sale price of $425,968 in August 2023. This reflects a more significant increase of 1% from the previous year. Nevertheless, similar to freehold properties, condo prices also saw a decline, albeit a slightly larger one at 1.4%, when compared to July 2023 figures.
Let's look at the "Days on Market" (DOM) metric, which measures how long it takes for properties to sell. For freeholds, DOM increased to 31 days in August 2023, up from 25 days in August 2022 and 26 days in July 2023. This suggests a somewhat slower pace in the freehold market.
In contrast, condos experienced a relatively marginal increase in DOM, moving from 28 days in August 2022 and July 2023 to 29 days in August 2023. This stability in the condo market might indicate consistent demand for this housing type.
The Ottawa real estate market in August 2023 appears to be undergoing adjustments after a period of robust activity. While average prices have shown year-over-year growth, they have dipped compared to the previous month. The market remains balanced, with consistent new listings, though properties are spending slightly more time on the market.