Ottawa Real Estate Market - February Stats

The Ottawa Real Estate Board (OREB) reported that in February 2023, their Multiple Listing Service® (MLS®) System saw a total of 855 residential properties sold, which is a 39% decrease from the 1,411 sold in February 2022. The sales comprised of 633 freehold properties, a 42% decrease from last year, and 222 condominiums, which saw a 31% drop from February 2022. The five-year average for total unit sales in February is 1,157.

OREB President Ken Dekker explained that the comparison of current sales figures to last year's height of pandemic resale market activity will result in a decline in transactions and prices. However, the Bank of Canada maintaining steady interest rates means that prospective buyers can expect more budget certainty as they head into the spring market.

In terms of average prices, the average sale price for a freehold-class property in February was $708,968, a 15% decrease from 2022 but a 5% increase from January 2023. The average sale price for a condominium-class property was $410,927, a 12% decrease from a year ago. Year-to-date average sale prices for freeholds and condos are $695,086 and $411,449, respectively, which represent a 14% decrease and a 10% decrease over 2022.

The increase in average prices for freehold properties in January may indicate that buyers have normalized to current interest rates, possibly leading to more activity in the upcoming months. However, the inventory for freehold and condominium-class properties has increased to 2.8 months and 2.5 months, respectively, from 0.7 months in February 2022. February's new listings (1,366) were 22% lower than February 2022 (1,762) but up 3% from January 2023 (1,323). The days on market (DOM) for freeholds decreased from 43 to 37 days and 47 to 43 days for condos compared to last month.

Dekker said that the decrease in DOM, coupled with fewer new listings entering the market, is good news for sellers. However, if the trend continues to impact the supply stock without more inventory, the otherwise balanced market could swing back into seller's territory, although it is too early to predict.