Real estate market at a glance
“The housing market story of 2022 was about high inflation and rising interest rates. The 2023 market will
depend on the timing and extent those factors move back in the other direction,” said Shaun Cathcart, CREA’s
Senior Economist. “Demand for housing continues to grow and supply remains the biggest issue across the entire spectrum. Whether that plays out in the rental market in 2023 or shifts back over into the ownership space is a matter of how quickly the Bank of Canada can get inflation under control and starts turning the dial back down on borrowing costs.”
Quiet December Caps Off Tumultuous Year
2022 in Review
Even with the normal seasonal slowdown, December’s performance was in stark contrast to the highly
active resale market that opened 2022, As interest rates and inflation both climbed, buyers retreated
to the sidelines and began taking a wait and see approach. However, while it’s quieter than the frantic
pace we experienced in 2021, it is now a balanced market.
• The average sale price for a condominium-class property in December was $434,973, an
increase of 9% from 2021.
• The average sale price for a residential-class property was $655,839, decreasing 7% from a year
ago.
• With year-to-date average sale prices at $769,623 for residential units and $453,770 for
condominiums, these values represent a 7% increase over 2021 for residential-class properties
and an 8% increase for condominium-class properties.
• Although market activity tapered off in later 2022, there was an immense amount of activity in
the spring at high prices. This will be an important caveat to consider as we begin comparing
2023 numbers to the previous year.
The leading economic force behind Ottawa’s rapid appreciation in the past five years is chronic supply
insufficiency. It intensified during the pandemic as prospective purchasers capitalized on incredibly low
interest rates. Today’s higher rates are slowing down building projects, which exacerbates the low
supply issue.
2023 Lookahead
It can be difficult to forecast a real estate market with a multitude of factors influencing a changing
economic environment. In 2023 the resale market will dictate how much activity we will experience.
I have access to expert insights and industry resources that can help buyers and sellers navigate the
complexities. Whether you are looking for a rental or looking to list a rental property I can help you
with rentals and vetting potential tenants.
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