When it comes to real estate trends in Ottawa, all signs are pointing to a more balanced market in 2023. Royal LePage recently issued a forecast projecting the aggregate price of a home in Ottawa will increase 2% year-over-year by next winter.
This, after a 2022 where the price of a home in Ottawa decreased 2.7% year-over-year in the fourth quarter.
Welcome to 2023: Shift happens!
The Ottawa real estate market is trending back toward normal levels we haven’t really seen since before the pandemic, which will help create a healthier market—unlike the wild swings we’ve endured over the past few years.
And according to the Royal LePage 2023 Market Survey Forecast, Ottawa’s modest growth tops every major Canadian market when it comes to projected prices, rising from an average of $719,900 in Q4 2022 to a projected $734,298 in Q4 2023.
Considering the Ottawa housing market is up 48.4 % since 2019, this year’s forecast clearly shows signs of moderation in sales activity and price. That’s partially because Ottawa and the surrounding area will continue to struggle with low inventory levels since the rate of construction lags well behind the overall demand and need.
Just where will prices hover come the end of 2023? Single-family detached homes are forecasted to increase 1% from an average of $841,700 in Q4 2022 to $850,117 in Q4 2023. Condominiums are projected to increase 2% from a Q4 2022 average of $370,000 to a Q4 2023 forecast of $378,114.
Risk adverse, cautious purchasers are sitting on the sidelines with the latest increase in interest rates announced earlier this month; however, savvy investors are enjoying higher vendor motivation and capitalizing where opportunities allow.
In any case, Ottawa has a very bright real estate future.
My team and I have been helping Ottawa residents for years in making sure their next move goes as smoothly as possible. From just-looking, to seasoned homeowner, we offer a refreshing, award-winning and client-centred approach.
Feel free to call us at 613-620-3870 or email me at sue@dunton.ca if you have any questions!
