The Latest Ottawa Real Estate Statistics

Ottawa MLS® Home Sales Hold Steady in Lackluster September

The Ottawa Real Estate Board (OREB) has released its latest market update for September 2023, revealing steady yet unremarkable performance in the local housing market. Here's a summary of the key findings:

1. Sales Activity Remains Stable but Below Averages

In September 2023, 946 homes were sold through the MLS® System in Ottawa. This number remained unchanged from September 2022. However, it's essential to note that home sales were 29.6% below the five-year average and 23.6% below the ten-year average for the month of September. On a year-to-date basis, home sales have experienced a significant decline of 13% compared to the same period in 2022.

OREB President Ken Dekker commented, "Sales activity came in right on par with where it stood at the same time last year but was still running well below typical levels for a September."

2. Prices Show Modest Growth

The MLS® Home Price Index (HPI) revealed that the overall benchmark price for homes in September 2023 was $643,600, representing a slight increase of 0.5% compared to September 2022. The benchmark price for single-family homes was $727,500, up by only 0.6% year-over-year. In contrast, townhouse/row units saw a 2.5% gain, with a benchmark price of $510,900, while the benchmark apartment price decreased by 1.1% to $422,300.

The average price of homes sold in September 2023 was $675,412, showing a 2.7% increase from the previous year. However, the year-to-date average price was $672,837, reflecting a decline of 6.5% from the first nine months of 2022.

3. Inventory and New Listings

New residential listings in September 2023 increased by 9.8% compared to September 2022, totaling 2,259 new listings. This surge in new listings was 4.8% above the five-year average and 7% above the ten-year average for the month.

Active residential listings at the end of September 2023 numbered 2,997 units, marking a significant gain of 14% compared to the same month in 2022. This level of active listings hasn't been seen in September for five years. However, it's worth noting that active listings were 33.9% above the five-year average and 18.5% below the ten-year average for the month of September.

The months of inventory stood at 3.2 at the end of September 2023, up from 2.8 months in September 2022. This figure remains below the long-run average of 3.3 months for this time of year. Months of inventory represent how long it would take to sell current inventories at the current rate of sales activity.

4. Ottawa Real Estate Statistics: What They Mean for Buyers

For homebuyers in the Ottawa real estate market, the latest market update for September 2023 presents some considerations. The stability in sales activity and modest price growth suggest a relatively balanced market, offering buyers a degree of predictability and time to make informed decisions.

The increase in new listings and active inventory indicates a growing supply of available homes, potentially offering buyers more choices. However, the competition remains strong, as reflected by the 29.6% drop in sales below the five-year average, which means buyers may still encounter bidding wars and fast-paced sales.

It's essential for buyers to stay well-informed about the specific neighborhoods they're interested in, carefully consider their budget and priorities, and work closely with a qualified real estate agent to navigate this dynamic market effectively. While the market is not as frenzied as it has been in the past, strategic and diligent planning remains crucial for those looking to secure their dream home in Ottawa.

5. Ottawa Real Estate Statistics: What They Mean for Sellers

While the market remains relatively stable with modest price growth, sellers should acknowledge that sales activity is below historical averages. The surge in new listings and increased inventory levels could potentially lead to a more competitive environment among sellers.

It's crucial for sellers to set realistic pricing strategies and ensure their properties stand out in terms of condition, presentation, and marketing to attract potential buyers. Additionally, understanding the specific neighborhood dynamics and local demand trends is essential for successful sales.

Despite the balanced market conditions, sellers still have opportunities, but they may need to exercise patience and flexibility when selling their home.  Collaborating with a knowledgeable real estate agent can be instrumental in maximizing the selling potential in this market.

Conclusion

In conclusion, the Ottawa real estate market in September 2023 is characterized by stability in sales activity, small price growth, and a notable increase in new listings and active inventory. These indicators suggest that the market is now in a more balanced territory.

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