Ottawa Real Estate Market Holds Steady Amidst Interest Rate Fluctuations

As the real estate market in Ottawa continues to attract attention, prospective buyers and sellers are keeping a close eye on the fluctuating interest rates. We spoke with Mitch MacKenzie about the trends he’s seen in the market in terms of average selling prices and interest rates.

In this article, we'll explore the average prices over the past two years and their correlation with the target rates, as well as the overall stability of the market in the face of interest rate changes.

Average Prices and Target Rates:

Comparing the average prices in May 2023 to previous months with varying target rates provides valuable insights into the current state of the Ottawa real estate market. Surprisingly, the average prices in May 2023, with a 4.5% target rate, closely resemble those seen in January 2022, when the target rate was a mere 0.50%. Furthermore, these prices are not far off from June 2022, when the target rate stood at 1.50%.

Market Resilience:

Despite the rate increases throughout 2023, the Ottawa real estate market has demonstrated resilience as prices have either increased or remained stable on a monthly basis. This stability can be attributed to various factors such as strong demand, limited supply, and the adaptability of buyers and sellers to changing market conditions.

Minimal Effect of Recent Increase:

On June 7th, a new interest rate increase of 0.25% was announced. However, it is anticipated that this adjustment will have a minimal effect on property values for both buyers and sellers. The reason behind this prediction lies in the fact that the market has already been operating under a 4.5% or higher target rate since January. Therefore, buyers and sellers have already adjusted their expectations and strategies accordingly.

Adaptation to Changing Rates:

It is worth noting that the majority of the interest rate increase occurred in the second half of 2022. Despite this significant change, people continued to move forward with their purchases and successfully adjusted to the new rates. This adaptability demonstrates the willingness of buyers and sellers to navigate changing conditions.

The Ottawa real estate market has proven its resilience in the face of fluctuating interest rates. Average prices in May 2023, despite a 4.5% target rate, mirror those observed in previous months with much lower rates. The market's ability to remain stable or experience growth month over month throughout 2023 indicates a sustained demand for properties in Ottawa. With the recent interest rate increase expected to have minimal impact, buyers and sellers can continue to navigate the market with confidence. As we move forward, the Ottawa real estate market appears poised for continued stability and growth.

Mitch MacKenzie

mitch@newpurveyors.com

613 282 9441

The Ultimate Condo Buyer's Checklist: What to Consider When Purchasing a Condo in Ottawa

Purchasing a condo is an exciting venture, and Ottawa offers a diverse range of condominium options to suit various lifestyles and preferences. However, with so many choices available, it's crucial to approach the buying process with a well-defined checklist. In this guide, we'll walk you through the essential factors to consider when purchasing a condo in Ottawa. By following this ultimate condo buyer's checklist, you'll be well-prepared to make an informed decision and find your dream home in the city.

Location and Neighborhood:

The first item on your condo buyer's checklist should be the location. Consider the neighbourhood's proximity to amenities, such as schools, parks, shopping centers, and public transportation. Ottawa offers a range of neighbourhoods, each with its unique charm and character, so choose one that aligns with your lifestyle and preferences, or make a list of a few who meet these criteria. Proximity to the downtown core or a more residential area can make a huge impact on your ability to access services quickly!

Condo Association and Fees:

Evaluate the condo association and its management. Review the association's financial statements, rules and regulations, and bylaws. Additionally, inquire about monthly condo fees and what they cover, such as maintenance, utilities, and amenities. Understanding these fees upfront will help you budget and determine the overall affordability of the condo. A home inspector and status certificate can also help you evaluate how much this may cost you in the future so that you aren’t shocked by a future increase in condo fees.

Building Condition and Maintenance:

Inspect the building's overall condition, including common areas, elevators, parking facilities, and landscaping. Assess the maintenance and cleanliness of these areas to gauge the level of care the condo receives. It's also essential to inquire about any upcoming renovations or repairs that may affect your living experience or result in increased fees.

Unit Size and Layout:

Consider your space requirements and lifestyle when evaluating the size and layout of the condo unit. Determine if the floor plan meets your needs and offers flexibility for future changes. Assess the storage options, the number of bedrooms and bathrooms, and the overall flow of the living spaces. There may be multiple options within your budget at the condo you’re looking at, so view different floor plans, even if they are the same square footage. What works for some may not work for you!

Natural Light and Views:

Take note of the condo unit's exposure to natural light and its views. Natural light can significantly enhance the ambiance of a space, while views can provide a sense of serenity and connection to the surroundings. Consider the orientation of the unit and whether it aligns with your preferences! Units may be more expensive with sunset views, while others may get too warm with the afternoon sun. Ideally, you’ll visit the unit multiple times at different times of the day to ensure that the unit works for your lifestyle.

Amenities and Facilities:

Assess the amenities and facilities offered within the condo complex. Common amenities may include a fitness center, swimming pool, party room, rooftop terrace, or concierge services. Evaluate whether these amenities align with your lifestyle and if they add value to your living experience! It’s okay to choose a larger unit in a building with no amenities if you decide it suits you better, but at the same time, many young professionals or couples may choose a smaller unit with more amenities and use them to host their guests instead.

Parking and Storage:

Determine the availability and cost of parking spaces and storage units. Inquire about the number of parking spots allocated to each unit and whether they are owned or rented. Adequate storage space is also crucial, so evaluate the availability of storage lockers or closets within the condo or building, and whether one comes with your unit or if one will be available.

Building Security:

Safety and security should be a top priority. Inquire about the building's security measures, including surveillance systems, access control, and on-site staff. A secure condo complex will provide you with peace of mind and ensure the safety of your property and loved ones.

Noise and Privacy:

Consider the noise levels within the building and surrounding area. Ask about the construction materials used in the condo unit and whether soundproofing measures have been implemented. Evaluate the distance between units and the potential for noise disturbances from neighbours or common areas. During your visits to the unit, listen to see if you can hear noises from the hallway or other units. This is another great reason to visit at multiple times during the day to see if it gets louder or quieter. If there is a balcony, you can also take a look to see how private it feels, and whether or not there is noise from the surrounding area or other tenants.

Resale Value and Market Trends:

While buying a condo is a long-term investment, it's important to consider its potential resale value. Research the recent market trends in the neighbourhood and evaluate the appreciation rates of similar properties. Understanding the market will help you make an informed decision and ensure your investment holds its value. Our website tracks the prices and sales each year for each condo in Ottawa on our individual condo pages - which can help you get an idea before you even speak to one of our agents, or we’d be more than happy to work through it with you!

By following the ultimate condo buyer's checklist outlined above, you'll be equipped to make an informed decision and find a condo that meets your needs, preferences, and budget. Remember to thoroughly research each item on the checklist, seek professional advice when needed, and take your time to ensure a successful and satisfying condo purchase in Ottawa.

The Spring Market is in Full Force!

The Ottawa Real Estate Board (OREB) has released its month-over-month recap for residential and condo sales, revealing positive trends and promising growth in May. The report highlights significant increases in sales volume and average prices, indicating a robust seller's market in Ottawa.

We spoke with Mitch Mackenzie about the current market trends.

Below is a summary of the numbers, keep reading for a more in-depth analysis.

Residential Sales in May:

• # of Sales are up 245% vs January

• # of Sales are up 28% vs April

• Average prices are up since Jan-March but remained stable compared to April

• Average prices are up a total of $69,695 since Jan

Condo Sales in May:

• # of Sales are up 216% vs January

• # of Sales are up 39% vs April

• Average prices are up month-over-month since Jan.

• Average prices are up a total of $30,615 since Jan

Days to Sell (CDOM - Days on Market) has dropped in half since January with the average days to sell sitting at 35-36 days and getting better each month.

Residential Sales Surge:

Residential sales in May demonstrated remarkable growth compared to previous months. The number of sales soared by an impressive 245% when compared to January, showcasing the increasing demand for residential properties in Ottawa. Moreover, May witnessed a 28% increase in sales compared to April, further solidifying the upward trajectory of the market.

Despite the surge in sales, average prices remained stable compared to April. However, compared to the January to March period, we are seeing a noticeable increase in average prices. Since January, the average residential property price in Ottawa has risen by a substantial $69,695, reflecting the growing value of properties in the area.

Condo Sales Flourish:

Condo sales also experienced significant growth, reinforcing the overall positive trend in the Ottawa real estate market. Compared to January, condo sales in May increased by an impressive 216%. Furthermore, there was a 39% surge in sales compared to April, demonstrating sustained momentum in this segment.

Average condo prices have been consistently rising month-over-month since January. Overall, there has been a significant increase of $30,615 in average condo prices since the beginning of the year. These findings indicate a healthy and thriving condo market in Ottawa.

Reduced Days on Market:

Another notable metric that has significantly improved since January is the days on market (CDOM). The average number of days it takes to sell a property has been cut in half, with the current average sitting at around 35-36 days. This reduction indicates a faster pace of transactions and suggests increased buyer interest in the market.

Market Outlook:

According to Ken Dekker, President of the Ottawa Real Estate Board, May's transactions have surpassed expectations and signify a promising year for sellers. While he acknowledges the potential impact of interest rate adjustments, he remains optimistic about the market's strength. With limited inventory, the current conditions favour sellers, as demand continues to outstrip supply.

The Ottawa real estate market has shown remarkable growth in May, with both residential and condo sales experiencing substantial increases compared to previous months. The surge in sales volume and rising average prices suggest a strong seller's market, highlighting the high demand for properties in Ottawa. As the market continues to evolve, it will be interesting to observe how these trends shape the future of the real estate landscape in the capital city.

Mitch MacKenzie

mitch@newpurveyors.com

613 282 9441

Condo Living in Downtown Ottawa: The Ultimate Urban Experience

Downtown Ottawa features a variety of amazing condominiums, and they come with a lifestyle completely separate from residential living. In this blog post, we’ll dive into some of the best parts of condo living in Downtown Ottawa.

Proximity to Work and Entertainment

One of the significant advantages of condo living in downtown Ottawa is the convenience of being close to work and entertainment options. Many professionals choose to live downtown to minimize commute times and enjoy a larger work-life balance. With a large number of office buildings, government buildings, and corporate headquarters located in the city center, residents can easily walk, bike, or take public transportation to their workplaces.

Furthermore, downtown Ottawa offers an array of entertainment venues, including theatres, concert halls, art galleries, and museums. Residents can enjoy Ottawa’s large and diverse cultural scene as well as easy access to live performances, exhibitions, and festivals held in the heart of the city.

Accessibility and Transportation

Downtown Ottawa is known for its walkability and excellent transportation infrastructure. Condo residents can take advantage of the city's extensive network of sidewalks, bike lanes, and pedestrian-friendly streets. This allows for easy exploration of the downtown core and its surrounding neighbourhoods, as well as access to a wide range of shops, restaurants, and cafes.

For those who prefer public transportation, Downtown Ottawa features an efficient transit system of buses and the O-Train Confederation Line. Commuting to different parts of Ottawa or travelling to nearby cities is convenient, making condo living in downtown Ottawa an ideal choice for those who value accessibility and mobility.

Amenities and Services

Condo buildings in downtown Ottawa are designed to provide residents with an abundance of amenities and services. From fitness centers and rooftop terraces to concierge services and 24/7 security, these buildings offer a host of conveniences that enhance the urban living experience.

Residents can enjoy amenities such as swimming pools, saunas, gyms, and communal spaces for socializing and hosting events. Many condominiums also have on-site management and maintenance teams, ensuring that common areas are well-maintained and repairs are promptly addressed.

Although condominiums can sometimes be smaller than the average residential home, the amenities offered usually accommodate large parties and events for guests, allowing them to extend their living spaces.

Dining and Culinary Experiences

Living in downtown Ottawa means having a plethora of dining options right at your doorstep. The city's culinary scene is diverse and ever-evolving, with a wide range of restaurants, cafes, and food markets to suit every taste and budget. From international cuisine to local delicacies, residents can indulge in a gastronomic adventure without travelling far.

Furthermore, downtown Ottawa is home to the famous ByWard Market, a vibrant and historic area that offers fresh produce, artisanal goods, and a bustling farmers' market. Condo residents can enjoy the convenience of shopping for high-quality ingredients to prepare their own meals or explore the market's many eateries and patios for a delightful dining experience.

Parks and Outdoor Spaces

Despite being a bustling urban center, downtown Ottawa boasts an abundance of parks and green spaces. Residents can take advantage of these outdoor spaces to relax, exercise, or enjoy outdoor activities. Major parks such as Major's Hill Park, Confederation Park, and Jacques Cartier Park offer scenic views of the Ottawa River, beautiful gardens, and walking paths.

Many condo buildings also have their own spaces for residents to enjoy the outdoors like terraces, rooftop patios, pools, and balconies.

In addition, the Rideau Canal, a UNESCO World Heritage Site, offers opportunities for recreational activities throughout the year. Whether it's cycling along the canal's pathways, ice skating in the winter, or simply strolling along its picturesque banks, condo residents have easy access to this iconic landmark.

Cultural and Historical Significance

Living in downtown Ottawa means being surrounded by the rich history and cultural heritage of the nation's capital. The area is home to numerous historical landmarks and iconic attractions, including Parliament Hill, the National Gallery of Canada, and the Rideau Canal. Residents can explore these landmarks at their leisure, immersing themselves in Canada's history and appreciating its architectural and artistic treasures.

Additionally, downtown Ottawa hosts various festivals and events throughout the year, including Canada Day celebrations, Winterlude, and the Canadian Tulip Festival. Condo residents can actively engage in the city's vibrant cultural scene, attending concerts, exhibitions, and performances that showcase local and international talent.

Condo living in downtown Ottawa offers residents an unparalleled urban experience. The proximity to work, the abundance of entertainment options, and the convenience of amenities and services make downtown living highly desirable. From dining experiences to outdoor adventures, the city provides a diverse range of attractions and activities for residents to enjoy. If you're looking for a dynamic and vibrant lifestyle in Canada's capital, consider the benefits of condo living in downtown Ottawa. It's an investment in a lifestyle that combines convenience, culture, and the ultimate urban experience.

The Residences: Image Courtesy of Capital Condos

Ottawa Condo Market Statistics - May 2023

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for May 2023 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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Members of the Ottawa Real Estate Board sold 1939 properties in May, an increase of 6% from May of 2022! This includes 1477 freehold properties (up 8%) and 462 condos (up 1%). This is also just below the five-year average for May, which is 1961. 

Ken Dekker, Ottawa Real Estate Board President, explains that May is typically the highest-selling month. He explains that this is the first volume increase in year-over-year sales since February 2022. It shows a lot of promise for sellers who were struggling with finding buyers during the interest rate increases. 

Dekker explains that we are only seeing around 5-6 weeks of inventory, so our market is leaning heavily toward the seller side. 

Average prices are decreasing year-over-year, but staying relatively similar to previous months. Freehold properties saw an average price of $745,902, which is a 7% decrease from last year, but the same as last month. Condominium class properties averaged at $442,859, a 6% decrease from last year but a 2% increase from last month. Year to date, freehold properties have seen a 12% decrease in price compared to 2022, and condominiums a 9% decrease from 2022.

Dekker continues to explain that we are not seeing any steep price escalations, and that May’s prices are still on par with April. With higher demand and low inventory, Dekker believes prices will continue to rise as long as interest rates remain the same or begin to drop. 

May saw 2822 listings, which is down 9% from May 2022’s 3117 new listings, but up from last month’s 2140 new listings. This is also only slightly lower than the 5-year average for May listings, which is 2922. 

Freehold inventory for this month has increased to 1.5 months over 1.2 months in May of 2022 but is down from the 1.9 months available in April. Condominium inventory has increased from 1 month in May 2022 to 1.3 months in May 2023 but is down from 1.9 months last month. Days on market for freeholds has dropped from 27 to 23 days. And for condos, from 33 to 26 over the last month. 

Dekker explains that due to low inventory, multiple offer scenarios are happening more often, and that a well-equipped real estate agent will be able to help buyers and sellers navigate this new market. 

Finally, OREB members helped 2731 clients find rentals in May, up 22% from the 2230 people assisted in May of 2022.

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Condo vs. House: Which is the Better Investment in the Ottawa Real Estate Market?

Investing in real estate is a significant financial decision that requires careful consideration and analysis. In the Ottawa real estate market, prospective buyers often face a crucial dilemma: Should they invest in a condo or a house? Both options have their own advantages and disadvantages, and the choice ultimately depends on individual preferences and investment goals. In this blog post, we will explore the key factors to consider when deciding between a condo and a house as an investment in the Ottawa real estate market.

Affordability and Upfront Costs

One of the primary considerations when investing in real estate is affordability. Condos are generally more affordable than houses in Ottawa, making them an attractive option for first-time buyers and those with limited budgets. Condos often come with a lower upfront cost, requiring a smaller down payment and offering more manageable mortgage payments. On the other hand, houses tend to have higher price tags and may require a more substantial initial investment.

Maintenance and Lifestyle

Another factor to consider is maintenance and lifestyle preferences. Condos typically offer a low-maintenance lifestyle as the responsibility for exterior maintenance, repairs, and landscaping rests with the condominium corporation. This can be a significant advantage for busy professionals or those who prefer to spend their time on other pursuits. Houses, on the other hand, offer greater control and privacy but also come with additional maintenance and upkeep responsibilities. Homeowners are responsible for the maintenance of the property, including repairs, landscaping, and other ongoing costs. With greater responsibility in owning a home also comes greater freedom, larger property, and typically more storage space among other things. Depending on the lifestyle your tenants intend to live, the size of your family, and your day-to-day needs, either may be a better option for you. Homeowners may spend more time at home and like to entertain, while condo owners may be away from home more often and want fewer responsibilities.

Location and Amenities

Location plays a crucial role in real estate investment. Condos are often located in urban centers and offer proximity to amenities such as shops, restaurants, and public transportation. They are especially attractive to young professionals or those looking for a vibrant city lifestyle. Houses, on the other hand, are more commonly found in suburban areas, offering more space, larger yards, and a quieter atmosphere. Families or individuals seeking a more peaceful environment may find houses more appealing.

Rental Potential and Cash Flow

Investors often consider the potential rental income and cash flow when deciding between a condo and a house. Condos in Ottawa tend to have a higher rental demand, especially in downtown areas and near universities, making them a popular choice for investors looking for steady rental income. Additionally, condos often have lower maintenance costs, allowing for a higher return on investment. Houses, on the other hand, may attract long-term tenants, such as families, who are looking for a spacious living environment. Renting out a house may provide a higher rental yield but may also require more ongoing maintenance and management.

Market Trends and Appreciation Potential

Examining market trends and appreciation potential is crucial for long-term real estate investments. In recent years, the Ottawa real estate market has witnessed steady growth and appreciation in both condos and houses. However, houses tend to have a higher appreciation rate compared to condos over time. Houses offer the potential for land value appreciation, especially in desirable neighbourhoods. Condos, on the other hand, may have more stable and predictable price growth, with less emphasis on land value.

When considering whether to invest in a condo or a house in the Ottawa real estate market, it's essential to weigh factors such as affordability, maintenance, location, rental potential, and market trends. Condos offer a more affordable entry point, low-maintenance lifestyle, and urban convenience, making them ideal for first-time buyers or investors seeking consistent rental income. Houses provide greater control, privacy, and potential for land appreciation, attracting families and those seeking a suburban lifestyle. Ultimately, the choice between a condo and a house depends on personal preferences, investment goals, and long-term financial planning. Consulting with a real estate professional can provide valuable insights and guidance tailored to your specific needs.

The Residences: Image Courtesy of Capital Condos

Pros of Purchasing an Assignment Sale

What is an Assignment Sale?

An assignment involves the transfer of the original Agreement of Purchase and Sale (APS) from the original purchaser (the Assignor) to a new purchaser (the Assignee). Instead of buying or selling the physical condo itself, the parties are trading their respective interests in the agreement. The Assignee, the new buyer, acquires the rights and obligations of the Assignor, the original buyer. Assignments are often referred to as selling the "paper" or the deal. While assignments can occur in any transaction, they are particularly common in real estate, especially for land assembly projects (where multiple lots are purchased to create a larger property, such as for a condo development) or for pre-construction condominiums. However, in Ottawa, it is uncommon for people to sell assignments for residential freehold properties (houses) due to the relatively short construction period of only six months.

What are the pros of purchasing one?

1. Access to Desirable Properties: Often, pre-construction projects in prime locations sell out quickly, leaving many potential buyers disappointed. However, by purchasing through an assignment sale, you can gain access to these coveted units that may otherwise be unavailable on the open market.

2. Potential for Profit: As Ottawa's real estate market continues to appreciate, purchasing a property during the pre-construction phase allows you to benefit from rising property values. By the time the project is completed, the market value of the condo may have increased, enabling you to sell the assignment at a higher price and realize a profit without ever owning the property.

3. Flexibility and Lower Costs: When you purchase a pre-construction condo through an assignment, you are essentially buying the rights to the property and the original purchase agreement. This means you can avoid some of the costs associated with traditional real estate transactions. Additionally, you may have the option to customize the unit during the construction phase, adding personal touches to suit your preferences, typically within the last year of the construction.

4. Mitigated Risks: Purchasing a pre-construction condo from an assignment sale in Ottawa can help mitigate certain risks associated with buying directly from a developer. For instance, you can assess the progress of construction before committing to the purchase, reducing the uncertainty of investing in a property that is yet to be built. Moreover, the assignment process allows you to inherit any warranties or guarantees offered by the developer, providing an added layer of assurance.

5. Time Advantage: By purchasing a pre-construction condo through an assignment sale, you can save time compared to buying directly from the developer. Typically, developers have extended construction timelines, and the process can involve delays. However, by acquiring an assignment, you can skip the waiting period and enjoy a more immediate possession of the property once the deal is closed.

To summarize, some of the best parts about assignment sales for buyers include:

• Owning a brand new unit without having to wait years for it to be built

• Less competition from other buyers as assignment sales are typically marketed significantly less (and are a more complex transaction, meaning a smaller buyer pool)

• Less likely to enter a multiple-offer scenario for the same reason

• Don’t have to worry about significant delays or project cancellations like you have when the project is just beginning

Investing in a pre-construction condo through an assignment sale in Ottawa can be an excellent opportunity for buyers looking to secure desirable properties, capitalize on potential profits, and enjoy greater flexibility in their real estate transactions. While it's important to conduct thorough due diligence and seek legal advice, the advantages of buying from an assignment sale, including access to sought-after properties, profit potential, lower costs, mitigated risks, and time advantages, make it a compelling option for astute buyers in Ottawa's thriving real estate market.

The Residences: Image Courtesy of Capital Condos

Exploring Ottawa's Luxury Condo Market: Top Developments and Amenities

Ottawa's luxury condo market is thriving, offering discerning buyers a wide range of upscale properties with exceptional amenities and breathtaking views. If you're in search of opulent living spaces and luxurious lifestyles, this comprehensive guide will introduce you to some of the top luxury condo developments in Ottawa. From stylish penthouses to exclusive waterfront residences, let's dive into the specific details and explore the best that Ottawa's luxury condo market has to offer.

The Residences: Image Courtesy of Capital Condos

The Residences at Island Park Drive

Located in the heart of Westboro, The Residences at Island Park Drive will offer unparalleled luxury living. This prestigious development features spacious units with high-end finishes and panoramic views of the Ottawa River. Residents can enjoy access to a private fitness center, rooftop terrace, and concierge services. The building's prime location provides easy access to trendy boutiques, gourmet restaurants, and scenic walking paths along the river.

The Rideau

Situated in the vibrant neighbourhood of Lowertown, The Rideau is a landmark luxury condo development offering an exceptional living experience. With its iconic architecture and world-class amenities, this upscale residence features elegantly designed units with floor-to-ceiling windows, gourmet kitchens, and lavish bathrooms. Residents can indulge in a range of amenities, including a state-of-the-art fitness center, spa, indoor pool, and private theatre room. The Rideau's central location provides convenient access to the ByWard Market, cultural attractions, and the picturesque Rideau Canal.

The Slater

The Slater

Nestled in the heart of downtown Ottawa, The Slater is a premier luxury condo development renowned for its contemporary design and exquisite finishes. The building's sleek glass exterior is a striking addition to Ottawa's skyline. The spacious units boast open-concept layouts, high-end appliances, and private balconies offering stunning views of the city. The Slater offers residents exclusive access to a rooftop terrace, fitness center, and a stylish lobby with concierge services. With its prime location, residents can enjoy the vibrant downtown lifestyle, with top-notch dining, entertainment, and shopping just steps away.

Lofts at Tribeca

Located in the desirable neighbourhood of Centretown, The Yard and Lofts at Tribeca offer luxurious urban living with a modern twist. The development features a mix of loft-style units and spacious condos, combining contemporary design with industrial-inspired elements. Residents can enjoy high ceilings, exposed ductwork, and stylish finishes. The amenities include a fully equipped fitness center, a party room, and an outdoor terrace with BBQ facilities. The Yard and Lofts at Tribeca are ideally situated near Bank Street, known for its trendy restaurants, vibrant nightlife, and boutique shops.

The Metropole

Situated in the heart of Sandy Hill, The Metropole is an exclusive luxury condo building known for its elegant design and sophisticated living spaces. The spacious units feature high ceilings, oversized windows, and top-of-the-line finishes. Residents can take advantage of amenities such as a fitness center, sauna, and a landscaped rooftop terrace with panoramic views of the city. The Metropole's prime location offers easy access to the University of Ottawa, Rideau Centre, and the scenic pathways along the Rideau River.

Cathedral Hill

Cathedral Hill is a prestigious luxury condo development situated in the charming neighbourhood of Golden Triangle. Known for its iconic architecture and sophisticated design, Cathedral Hill offers a collection of spacious and thoughtfully designed units. Residents can enjoy amenities such as a fitness center, a rooftop terrace, and a lounge area with a fireplace. The building's prime location provides easy access to the National Arts Centre, Parliament Hill, and the vibrant Elgin Street, renowned for its bustling entertainment and dining scene.

The Bowery

The Bowery

The Bowery is a sleek and modern luxury condo development nestled in the heart of Centretown. With its striking architectural design and upscale amenities, The Bowery offers residents a sophisticated living experience. The units feature contemporary interiors, high-end appliances, and spacious balconies. Residents can enjoy amenities such as a fitness center, a rooftop terrace with BBQ facilities, and a stylish lobby with concierge services. The Bowery's central location provides easy access to Parliament Hill, the Rideau Canal, and the trendy shops and restaurants along Bank Street.

The Eddy

Situated in the vibrant neighbourhood of Hintonburg, The Eddy is a unique luxury condo development that embraces sustainable design and modern aesthetics. The building offers environmentally conscious features such as geothermal heating and cooling systems and a green roof. The units showcase contemporary finishes, open-concept layouts, and large windows to maximize natural light. Residents can take advantage of amenities such as a fitness center, rooftop terrace, and bike storage. The Eddy's location offers easy access to Wellington Street's hip boutiques, art galleries, and the popular Parkdale Market.

Ottawa's luxury condo market is brimming with exceptional developments, each offering its own distinct style, amenities, and location advantages. From elegant waterfront residences to contemporary urban retreats, these top luxury condo developments showcase the best of Ottawa's upscale living. Whether you're seeking panoramic views, state-of-the-art amenities, or proximity to vibrant neighbourhoods, the Ottawa luxury condo market has something to suit every discerning buyer's taste. Explore these remarkable developments, immerse yourself in the luxurious lifestyles they offer, and find your perfect haven in the heart of Canada's capital city.

Why Invest in Condos in Ottawa? The Benefit of a Booming Condo Market

The capital city of Canada is home to a booming real estate market - with a steadily increasing population and a high demand for housing. Despite the recent dip in the market, Ottawa remains a seller’s market with a high level of interest and a low level of inventory.

Ottawa is also a condo-centred city, with tons of options for all lifestyles and budgets. Condos continue to pop up in the city every day, with new projects continually proposed. The demand for easy, downtown living is clearly high here and continues to grow with the population.

Economic Growth

Ottawa has a stable economy and a low unemployment rate, which is always good news for real estate investors. Ottawa has a very diverse economy, with plenty of large sectors in the area including government, tech, healthcare, and education. This stability has contributed to a steady increase in property values and eligible tenants.

High Demand

Ottawa’s population has been steadily increasing over the years, and will continue to do so as Canada and Ontario particularly continue to welcome more people. Condos in particular have become more popular in Ottawa because of their affordability and convenience. Many people in the city are looking for small and affordable living spaces. Furthermore, homes that are close to the action of downtown - whether that be work or shopping, dining, and entertainment. They also fix a lot of the problems that come from Ottawa’s harsh winters. In condos, snow removal is covered by the building, parking is typically inside, and there are often amenity spaces to host friends outside of your home without having to travel.

Rental Market

Another reason Ottawa is a great place for investing in condos is that Ottawa is a major rental city. From a high student and young-professional population, there are plenty of renters in the city who are looking for small, affordable, and temporary properties in the area. Condos, additionally, are an excellent choice for investors anywhere because they offer low-maintenance, turn-key investments that typically bring in more income than residential rentals.

Amenities and Lifestyle

Ottawa is a great city for condo investments too because of the amenities and lifestyle that are offered in so many of these buildings. Condos not only reduce a lot of the maintenance and housework that can be a deterrent for renters (like shovelling snow, parking outside, gardening, and more), but they also offer a lot of great options to replace what a condo unit may lack compared to a residential home. Condos often have party rooms, pools and hot tubs, and gyms - meaning residents don’t have to leave the comfort of their homes to host parties, swim or relax, or workout. All of these lifestyle additions are a huge attraction for tenants.

Ottawa Condo Market Statistics - April 2023

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for April 2023 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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In April, the Ottawa Real Estate Board saw 1488 residential properties sold through MLS. This is down 21% from April 2022, where we saw 1876 sales. This month’s sales included 1156 freehold homes (down 18%) and 332 condominium units (down 29%). This month’s total sales is also significantly lower than the 5-year average for April, which is 1739 sales.

Despite historically low numbers, Ken Dekker, President of the Ottawa Real Estate Board, explains that we are still seeing Ottawa’s resale market on an upward trend. We’re seeing numbers closer to what we were seeing during peak pandemic activity in 2022, which is encouraging. However, he also states that new listings are not keeping up to this activity, so inventory is declining quickly, meaning we’re headed back into a seller’s market. 

Average prices in Ottawa have increased over the last few months by 13.9%. In freehold properties, average prices are down 10% year over year, but still up 5% over the previous month. Condominiums are also down year over year by 8%, but are up 4% from last month. 

Dekker explains that pressure on sales prices has continued - average prices have increased each month of this year, and we’re seeing more and more multiple offer situations and less days on market. Low inventory is affecting supply, and the pressure on buyers is coming back.

In April, the city saw 2144 new listings, 25% down from the 2943 in 2022. This is slowly catching up to the 5 year average for new listings in April, which is 2575. Freehold property inventory has increased from April 2022 where it was 0.9 months to 1.9 months, but this is down from March’s 2.3 months of inventory. In condominiums, we also have 1.9 months of inventory, up from 0.8 in APril of 2022 but down from 2.1 months in March of 2023. Days on market is down from 34 to 37 in freeholds and from 39 to 33 for condominiums. 

In the world of rentals, OREB members helped 2152 rental clients find their new home, up 20% from 1786 this time last year. 

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Ottawa Condo Market Statistics - March 2023

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for March 2023 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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In the month of March, Ottawa Real Estate Board members sold 1194 residential properties, compared to 2003 in March of 2022. This includes 893 freehold properties, down 40% from the previous year, and 301 condominium properties, down 42% from the previous year.

This is still a rise in transactions month over month and shows that the market is picking up for the spring.

The average price for freehold properties in March was $710,070, down 17% from March of 2022. However, this is a slight increase from February 2023, showing that the market is beginning to pick up again. Freehold prices have, since December of 2022, climbed around 8%!

Condominiums were selling for an average of $418,670, down 13% from this time last year, but up 2% over last month.

Year to date freehold sale prices are at $701,837 and $414,698 for condominiums.

The recent month-over-month climb in prices in 2023 has illustrated that the market is stabilizing along with interest rates.

Inventory is also increasing. Freehold properties have seen an increase from 0.6 months in March 2022 to 2.3 months in March 2023. Condominiums have sen an increase from 0.6 months to 2.8 months year over year.

Days on market in Ottawa for this month has also decreased - from 37 to 34 for freehold homes and from 43 to 39 for condominiums.

Ken Dekker explains that well priced homes are selling. Real estate agents must have recent statistics to ensure sellers are prepared to position themselves effectively within the market. Buyers can benefit from the same information to negotiate with sellers.

OREB members also assisted with renting 1599 properties this March, increasing 24% from the previous year.

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Ottawa Condo Market Statistics - February 2023

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for February 2023 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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In the month of February, Ottawa Real Estate Board members sold 855 residential properties through MLS. This is down 39% from last year’s 1411 sales. This includes 633 freehold-class properties (down 42% year over year), and 222 condominium-class properties (down 31%). This is also down from the five year average for total sales in the month of February, which is 1157.

Average sale prices are still down year over year. Freehold properties are seeing an average price of $708,968 which is a decrease of 15% from February 2022. However, this is an increase of 5% compared to January 2023, which is a promising trend.

Condominium prices averaged $410,927, which is a decrease of 12% from February last year.

Year-to-date averages also show a decrease - of 14% for freeholds and 10% for condominiums.

Ken Dekker, OREB President, explains that “the average price increase” indicates that buyers have gotten used to the current interest rates, which is a sign of hope for the future!

Inventory in the city has increased. Year over year, we’ve seen huge increases in properties on the market in both freehold and condominium-class properties.

Freehold properties increased from 0.7 months of inventory to 2.8 months. Condominium inventory increased from 0.7 months to 2.5 months.

February’s new listings for 2023 were 22% lower than February 2022, but were up 3% from January 2023. Compared to the 5 year average of 1632 new listings, this February we saw 1366.

Days on market decreased from 43 to 37 days for freeholds and 47 to 43 for condominiums compared to last month as well.

A decrease in days on market, says Dekker, paired with fewer new listings coming on the market, is great news for sellers. It’s unclear now if those trends will take us back to a seller’s market from the balanced market we are currently in, but we’ll begin to see in the next few months.

Since the beginning of the year, OREB Members have assisted clients with renting 995 properties compared to 800 last year at this time, an increase of 24%.

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Ottawa Condo Market Statistics - January 2023

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for January 2022 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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In the month of January, OREB members sold 606 residential properties. This is down 35% from last January, when we sold 933. This includes 460 residential class properties and 146 condominiums, down 30% and 47% respectively. This is also significantly lower than the 5-year average of 819 sales. 

The new OREB President, Ken Dekker, explains that the slowdown indicates potential home buyers are taking their time. He states he believes they are being cautious during uncertain conditions. 

In terms of prices: Condo properties saw a decrease of 8% for an average of $412,244. Freehold properties saw a decrease of 12% from last January, with an average price of $676,272. However, Dekker explains this isn’t a crashing market, but instead a market that is just balancing out after the extreme prices and low rates during COVID. It is ‘levelling out’. 

It’s also a good sign that prices are actually increasing from December! Up 3% month over month. Condo prices have dropped in comparison, around 5%, but those numbers are actually more volatile due to fewer condos being sold than freehold properties. 

Inventory has also increased! Freehold properties are now up to 3.8 months rather than 0.9 months last January. Condos are also up to 3.8 months of inventory instead of 0.8 last January. New listings this month are sitting at 1324, 16% higher than 1142 in January 2022, and are up 899 from December 2022 when there were only 699 listings. This is also higher than the 5-year average for January, which was 1233. 

Dekker explains that these figures are typical for a balanced market, a sign that buyers aren’t “racing to put in an offer.” New listings and supply illustrate to buyers that they can take time selecting a home and put in the conditions that they want in their offers. 

More people are also turning to real estate agents for help with rentals, up 24% from 410 last year to 509 this year. 

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

2022 Condo Market Recap with Mitch MacKenzie

The change in the condo market from 2021 to 2022 is a nuanced one. We started the year with an exceptionally fast paced market, and ended with a more slow, balanced one. Mitch MacKenzie has taken the time to pull statistics from the past two years in the Ottawa condo market to give us a better understanding of how trends are looking into 2023. 

Here is the area of Ottawa we are working with for these statistics. 

In 2021, there were 983 condo sales in the city limits. In 2022, we saw a drop of only 6 units, for a total of 977 condo sales throughout the year. 

The average price of condos in the city actually rose considerably, up $23,465 from 2021. The median price rose even higher, $28,500 more than 2021. 

Below is a breakdown of the prices we saw in studio, 1 bed, and 2 bedroom condos within the city limits this year and last, to show where the increases are most prevalent, and which months we saw large increases. 

So now, let’s look into the two halves of the year. As mentioned earlier, 2022 was categorized by two distinct half-years with very different market conditions. 

In the first half of the year, there were twice as many houses sold as there were in the second!

It does seem like the market is slowing down considerably, but for the time being, demand is still high! Mitch breaks down what a buyer’s and seller’s market means - and due to our inventory being 1.86 months as of the start of 2023, we’re still in a seller’s market! This means there are considerably more buyers at the moment than there are sellers. 

Now, let’s take a look at the days on market for each quarter of the past two years. We’re seeing that the 2021 average was actually higher every quarter, except for the fourth quarter, where the days on market averaged out the same. 

Mitch explains that although lending has been tightening over the last year, this has actually impacted the residential market a lot more than the condo market, as more residential buyers have been forced down to condos and less condo buyers can move up into residential.

Mitch has some property suggestions for buyers, take a look at the links below! 

Detached homes in the mid 500s

Townhomes in the high 400s, many of which were priced at well over 500k in the past few years.

Condos in great locations in the city.

Mitch MacKenzie

New Purveyors’ resident condo expert.

mitch@newpurveyors.com

Ottawa Condo Market Statistics - December 2022

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for December 2022 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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In December, members of the Ottawa Real Estate Board sold 601 properties. This is a 30% decrease from December 2021, where the board sold 857 properties. 466 of these sales were in the residential property class, which is a 22% decrease. 135 of these properties were in the condominium property class, down 48%. 601 sales is also significantly lower than the 5 year average for the month of December, which is 775. 

Year in Review

Sales in 2022 are down in total sales as well as sales volume. In 2022, members of the Ottawa Real Estate board sold a total of 15,288 homes - residential and condo. This is down 25% from total sales in 2021, which were 20,289. In 2022, the total sales volume in our city was around $10.5 billion. In 2021, this number was $13 billion. 

Condominiums in December were selling for an average of $434,973, this is a 9% increase from prices in 2021. Residential properties, however, are down 7% from last year, for an average sale price of $655,839. Year to date, prices are up 7% from last year in residential properties and 8% for condominiums. This is due to the high sales prices we experienced at the beginning of the year averaging out the lower prices later in the year. 

In terms of inventory, Ottawa’s residential class property inventory has increased to 3.7 months of inventory. It was 0.9 months this time last year. In condominiums, inventory is now at 3.9 months instead of 0.9 in December 2021. 

Rentals

The Ottawa Real Estate Board assisted in renting 6,105 properties in 2022, up a considerable amount from the 4,813 properties rented in 2021. 

OREB is bringing in a new president for 2023, Ken Dekker. Ken explains that “December’s performance was in stark contrast to the very active resale market that opened 2022” but notes that “while it’s quieter than the frantic pace we experienced in 2021, it is now a balanced market.” This means there is no reason to panic! Although we are used to a very fast paced market where sellers have the upper hand, we’re seeing a ‘balanced’ market, which means buyers and sellers are experiencing a level playing field for the first time in a while.

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Selling Your Condo in Ottawa in the Winter

If you’re cautious about selling your Ottawa condo during the winter season, you’re not alone. You’ve probably heard that the winter is a slow season, that people typically aren’t looking to move, or that you’d be wise to wait until the spring. However, that isn’t always true. Let’s break down some of the pros and cons of selling your condo during the winter season.

Pros:

Although there are fewer buyers shopping in the winter season, those who are are more serious about finding a home. You can assume if they are looking during the winter ‘slow’ season, that it is imperative they move relatively soon! Because of this, you may actually get away with fewer showings and more interested parties earlier on.

Because the winter market is slow, you’ll also have fewer competitors in your specific market. During the spring, you may find that plenty of condos similar to yours are on the market. In the winter, you may be the only one, meaning you’ll have more interested buyers coming right to you.

Another benefit of starting your journey to sell your condo in the winter is it gives you more time if you need it. If after meeting with your real estate agent you realize you’d like to upgrade the floors for example, even if it takes longer than expected, the market is heating up as you do it, so you’ll still benefit from an easier sale. If you decided to do the same in the summer, you might have the opposite.

Finally, after the holidays, we typically see an increase of people browsing for new homes. It’s a great time to be on the market because your home will be seen by a large number of people who are getting started on their buyer’s journeys!

Cons:

Despite these benefits, there are definitely some ways that selling a condo in the winter is difficult. First and foremost, the exterior of your building and any outdoor amenities may be hard to photograph for your listing. You may be able to bypass this if your real estate agent has previously listed a home in your condo, or if they have connections to the building and can access photos from the initial marketing of the building. Snow and ice typically don’t perform well, and some outdoor amenities may be totally closed off.

A second issue with the snow and ice is keeping your home clean while potential buyers visit for showings or open houses. A pro tip from our team, get a large and thick rug for your front entrance to give people adequate space to remove their shoes!

Although fewer buyers mean more serious buyers, it also means that your property may be on the market for longer than you’d like. If you’re looking for a quick closing, you’ll need to work with your real estate agent to create a plan to try and get that done.

Winter is also cold and flu season, meaning you may find more showings getting cancelled, and you may be at a larger risk of getting sick by welcoming so many people into your home. We always offer our clients hand sanitizer for all showings and open houses, but there is definitely more risk during this season!

Overall, there is no one perfect time for everyone to put their property up for sale. If you are considering selling, the best thing that you can do is work with an expert realtor who can help develop a plan for you and your property based on your needs! Whether you’re prioritizing a high-priced sale, a quick closing, or are just testing the waters… working with an expert will help you ensure you’re making all the right choices.

Ottawa Condo Market Statistics - November 2022

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for November 2022 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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In the month of November, Ottawa Real Estate Board members sold 846 residential properties - down 42% from November 2021. 658 of these were residential, down 39%, and 188 were condominiums, down 50%. This is also a significant decrease from the 5-year average of sales in the month of November, which is 1270.

The president of the Ottawa Real Estate Board, Penny Torontow, explains that November’s sales are typically lower as the real estate market comes to a lull during the holiday season. But they also reflect the state of our economy. She explains that many people who can are waiting and watching to see what happens next, as our market is changing so quickly, and similar trends are appearing all over the world.

Prices are also decreasing. The average condominium this November cost $415,533, which is a decrease of 4% from November last year. The same is clear in residential housing, where the average property cost $680,031, a decrease of 5% from November last year.

So far, the year-to-date average for sale prices is $774,422 for residential homes and $454,436 for condominiums, which is still an 8% increase over 2021.

This new market has had a huge impact on first-time home buyers, Torontow explains. The massive decrease in condo sales illustrates that entry-level properties are becoming less attainable to their market. A quickly changing market and increased stress test requirements are forcing first-time buyers to stay on the sidelines in a rental market that is seeing a large uptick in prices as well.

In terms of inventory, we’ve seen a huge increase in residential properties from 0.9 months last year to 3.5 months this year. For condos, this has increased from 1.1 to 3.4 months. There was also a 12% increase in listed properties this month versus November 2021, from 1429 to 1598, but this is a 22% decrease from the 2046 listed in October of 2022. It is higher than the 5 year average for November of 1398 listed properties.

Torontow explains these new numbers illustrate a balanced market that is starting to tip towards the buyers. Sellers should work with an experienced agent who understands how to appropriately price a home and list it at an ideal time.

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Ottawa Condo Market Statistics - October 2022

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for October 2022 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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This month in Ottawa, members of the real estate board sold 987 residential properties. This is down nearly 41% from October’s sales in 2021, which were 1670. Residential properties are down 40%, and condominium properties are down 44%. This is also down a similar percentage from the 5 year average of 1554. 

Penny Torontow, OREB President, explains that after the rush of the pandemic, the market is correcting itself. This, with the added stress of increased interest rates, has changed the market drastically over the past few months. It has caused buyers to be more hesitant and has taken the purchasing power away from plenty of people, especially first time home buyers.

However, Torontow explains that demand is still high. Despite this, with larger inventory than before, buyers are able to take their time and have more options available when they look to purchase a home. Buyers are taking a “wait and see” approach in some instances, making sure they’re monitoring the interest rate situation. 

It is reasonable for sellers to feel concerned about the quickly changing housing situation in Canada. Despite this, Torontow explains that real estate is a long term investment. The growth we saw in our market over the past 2 years was unsustainable. She explains “if you have owned your property for any length of time, your equity has increased significantly and will buffer price corrections. If you buy and sell in the same market, it is all relative.”

In terms of inventory, we are looking at 3.3 months for residential and 3 months for condominiums. That is up significantly from 2021 where we saw 1 month of inventory for residential, and 1.2 months for condominiums. 

Listings this month were actually higher than October 2021. We saw 2047 listings this year versus 1960 last year. This is also higher than the 5 year average of 1971. 

Torontow explains that buyers and sellers should be aware of their own circumstances. It is important not to fall for a one size fits all approach when it comes to the market right now. Torontow says that “real estate has been and continues to be a good investment over time. They don’t have a crystal ball, but mortgage brokers and REALTORS® have the education, expertise, and most importantly, the data - to help people make an informed decision for their specific situation.”

Rentals are also up considerably this year. Last year we saw 4012 rentals in the month of October. In 2022, we saw 5168.

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Higher Interest Rates and Housing Prices with Mitch MacKenzie

Is now a good time to buy or sell? This is the question fluttering around the real estate market in Ottawa. 

We sat down with Mitch MacKenzie to take a look at what the numbers say about the Ottawa condo market.

Below are Mitch’s statistics - let’s dive into what they mean.
As the interest rate has risen this year, we’ve seen a slight dip in condo prices throughout the summer. 

September has been the highest month for average condo prices this year. Despite this, August was actually the second lowest average price we’ve seen this year, just behind June.

This trend suggests that prices have been on a downward turn throughout the summer. Although last month was a high point, it is important to pay attention to the overall trend for the past few months, because monthly statistics are only a small snapshot of overall yearly trends. They can be skewed by one incredibly expensive (or inexpensive) property, or other flukes in single sales. 

Further, a rough idea for down payments illustrates that if prices continue to drop as they seem to be, these prices from sellers who are trying to appeal to cautious buyers may actually be an added benefit - as these prices drop, they combat the rising interest rates and provide a monthly payment similar to those before interest rates rose at all! 

For example, comparing January and February average payments of $2127-$2160 with June and August’s $2208-$2327, there is only a slight increase in average monthly payments. 

If prices drop further, we may see a complete leveling out which combats interest rates - at least in Ottawa’s condo market. 

This means buyers may finally start to see the upper hand again. 

Furthermore, we are seeing a huge increase in inventory as houses are on market for longer. This means buyers have more options and less rush to put in an offer. They can also utilize more conditions to protect themselves.

Average down payments have also been down on average this summer - from around $100,000 in the winter months to as low at $92,000 this summer!

Ottawa Condo Market Statistics - September 2022

Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for September 2022 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.

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This month, Ottawa real estate agents sold a total of 1080 properties, down 33% compared to September last year. The decrease is higher in residential properties, down 34%, than it is in condos, down 27%. This is also significantly lower than the 5 year average of 1586. 

This is illustrative of buyer’s hesitancy about rising interest rates, OREB’s president Penny Torontow says. The mortgage stress test and inflation in the country has caused a lot of buyers to stop their search for the time being.

However, we’ve seen an increase of new listings that have entered the market! These are now higher than not only last month, but also last year, and the five year average. This means that the market is coming closer into balance. Buyers and sellers can now take the time to weigh their options and see what works best for their situation. 

Inventory in residential properties is up to 3.1 months. It was 1.2 this time last year! For condos, we’re seeing 2.7 months inventory compared to 1.6 last year. New listings are 5% higher than in 2021 and 13% higher than this August. 

We are also seeing prices begin to stabilize month to month, but are still increasing in yearly trends. Average condo prices are up 6% from 2021 to $450,987. Residential properties are up an average of 0.5% at $706,658.

Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.

Want to chat about your options? Fill out the form at the bottom of the page, or text/call us directly 613-900-5700 or fill out the form at the bottom of the page.

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.