As published November 29, 2022, on REMAX Blog
Canadian Housing Market Shifting into Balance in 2023
The majority of Canadian housing markets balancing out, with 60 per cent anticipated to be balanced markets in 2023
RE/MAX Canada expects average residential prices to decrease by 3.3 per cent in 2023
- The biggest price declines across the country are expected in Ontario and Western Canada, where some markets may see average residential sale prices decrease by 10 to 15 per cent
- Price growth outlooks are anticipated in Atlantic Canada markets, with average residential sale prices expected to increase by eight per cent in Halifax and four per cent in St. John’s in 2023
- 60 per cent of regions in Canada are expected to be balanced markets in 2023, according to RE/MAX brokers and agents
- 73 per cent of Canadians still say that home ownership is the best long-term investment they can make
Ottawa is currently defined as a seller’s market and it is anticipated to remain one into the third quarter of 2023, where subsequently it is anticipated to become balanced. First-time homebuyers are driving demand in the region due to its relative affordability a trend that is expected to carry on next year. The average residential sale price increased by nine per cent from $601,039 in 2021 (January-December) to $656,761 in 2022 (January-October). Townhomes are currently the most in-demand housing-type due to the accessible entry-point they provide buyers.
“We’re seeing three main housing trends heading into 2023,” said Laura Keller of RE/MAX Affiliates Realty Ltd. “More multigenerational living, less upward movement as housing prices change and many first-time buyers who will look to engage and enter the market.” First-time buyers in Ottawa are particular about the finishes, style and location of their homes, with many not wanting to spend money on small renovations. As single-family dwellings have become unaffordable to rent, multi-residential properties and tiny or coach home conversions are expected to increase. Rising interest rates are anticipated to continue cooling the market in the next year. Supply remains an issue in Ottawa, with many new construction developments being halted due to increased development fees and material and labour shortages. The average residential sale price in Ottawa is anticipated to increase by four per cent in 2023.
For more news about the Canadian housing market outlook, visit https://blog.remax.ca/canadian-housing-market-outlook/
Ottawa 2022 Real Estate Market Update @ October, 2022 from the Ottawa Real Estate Board
Members of the Ottawa Real Estate Board sold 987 residential properties in October through the Board’s Multiple Listing Service® System, compared with 1,670 in October 2021, a decrease of 41%. October’s sales included 758 in the residential-property class, down 40% from a year ago, and 229 in the condominium-property category, a decrease of 44% from October 2021. The five-year average for total unit sales in October is 1,554.
Click to read OREB’s full Market Update of November 3, 2022
Ottawa 2022 Real Estate Market Update @ September, 2022 from the Ottawa Real Estate Board
Members of the Ottawa Real Estate Board sold 1,080 residential properties in September through the Board’s Multiple Listing Service® System, compared with 1,601 in September 2021, a decrease of 33%. September’s sales included 816 in the residential-property class, down 34% from a year ago, and 264 in the condominium-property category, a decrease of 27% from September 2021. The five-year average for total unit sales in September is 1,586.
Click to read OREB’s full Market Update of October 5, 2022