Out with a whimper — that’s what we saw in December 2022 new-home sales, echoing the poor performance of the last half of the year and resulting in a year of sales that were almost 50 per cent lower than the average.
In its final report for 2022, industry analyst PMA Brethour Realty, which prepares monthly new-home market reports on behalf of the Greater Ottawa Home Builders’ Association, recorded just 67 sales for December. That was 83 per cent lower than the 393 sold in December 2021, although it was a slight increase from November’s paltry 56 sales.
For the year as a whole, there were 2,827 new-home sales, down 43 per cent compared to 2021, when there were 5,022 sales. The five-year average is 5,010.
“The recent month-to-month decreases that we’ve seen in sales since the February peak were predicted and expected,” says PMA Ottawa president Cheryl Rice. “New-home builders have been responding to market conditions by offering bonuses, incentives and price decreases to attract those who can afford to purchase a new home at current rates.
“Cash-off price incentives of $150,000 to $190,000 can be found, bonuses of $25,000-$50,000, and upgraded specs, including quartz counters, central air conditioning and finished basements, are being offered across a range of low-rise products.”
She adds that the first quarter of 2023 “is expected to be a little bumpy, so these and other sales and marketing strategies to allure prospective buyers are likely to continue over the next few months.”