February 2023 Home Sales Decline in Ottawa

What You Need to Know About Ottawa Real Estate

The residential real estate market in Ottawa has experienced a significant amount of volatility over the past year. February 2023 saw home sales and transactions decline from the previous year, but what does this mean for buyers and sellers in the area? Let’s take a look at the current state of Ottawa’s housing market.

Home Sales Decline in Ottawa

In February 2023, there were 855 homes sold in Ottawa, representing a 39% decrease from February 2022 in which there were 1,411 residential sales. This is not unusual given that many people are reluctant to enter into large purchase agreements during times of economic uncertainty and continued interest rates increases, but it is still cause for concern as it indicates a lack of confidence in the housing market.

What Type of Market Are We In?

The current market can be described as a balanced market leaning towards a little bit of a “buyer’s market” with low demand and low supply. This means that prices have been dropping due to Sellers being impatient compared to the last two years, making it easier for buyers to find good deals. Additionally, buyers are getting more bang for their buck as Sellers are more willing to negotiate.

Decline in Sale Prices in Ottawa

The sale prices in Ottawa for the month of February for a freehold-class property has decreased 15% from last year during the same month, but there is some optimism as the sales prices for these type of homes in Ottawa did increase 5% compared to last month, January 2023. Orleans is seeing a similar trend.

All things considered, February was an interesting month for home sales in Ottawa as we saw a decline in both homes sold and sale prices closed compared to last year. However, it is important to remember that this could be attributed to several factors such as buyer hesitation or increased mortgage interest rates. Although it may seem like a difficult time for those looking to buy or sell a home right now, this could ultimately create opportunities for savvy investors or first-time homebuyers who are willing to wait until conditions improve and prices drop again before entering into any major purchase agreements. Contact Orleans Real Estate Marc-Andre Perrier to give you an accurate updated market analysis!