Ottawa’s November 2021 resale market was both down and up, a sign we’re still not close to the balance that makes planning easier for buyers and sellers alike.
Realtors with the Ottawa Real Estate Board sold 1,459 residential properties in November through the board’s Multiple Listing Service (MLS) system. That was down nine per cent from the 1,605 in the same month last year.
Sales of non-condo properties dropped 10 per cent to 1,086, while condos were off seven per cent at 373.
At the same time, November’s sales were eight per cent higher than the five-year average of 1,348 sales.
“Although the resale transactions in November were down compared to a year ago, this is because 2020’s peak market activity shifted to later in the year due to the initial pandemic lockdown,” said board president Debra Wright in a statement. “In reality, November’s unit sales tracked 14 per cent higher than 2019 (1,284), a more relevant base year for comparison.”
Prices may be moderating
Non-condo resale properties fetched an average $716,992 last month, and condos went for $432,099. Both those numbers were 19 per cent higher than last November. The good news, at least for buyers, is non-condo prices did not increase from October to November this year. Condos were up seven per cent.
“This is a far better situation than the monthly price escalations we had seen in the first quarter of 2021,” said Wright.
Buyers can also take comfort in a recent market forecast from Re/Max. While the company foresees Canadian resale housing prices increasing by an average 9.2 per cent in 2022, it says Ottawa prices will grow by just five per cent, close to what was once the usual annual increase in the Ottawa market.
Inventory issues in November 2021 resale market
Despite the slower price growth, low inventory — a problem in the Ottawa market for more than two years now — continues to put pressure on resale housing.
The board reports 1,430 new listings entered the market last month, a 27-per-cent decrease from October and 13 per cent less than last November.
“While the drop in volume of new listings is typical for November, our inventory, at one month’s supply, is much lower than it should be,” said Wright. “This is simply not sustainable and is taking us further away from the balanced market that will bring much-needed relief to potential buyers.”
