May Sees Surge in Ottawa Home Sales with Resurgence of Bidding Wars, Realtors Report

June 7, 2023

Hey there! Guess what? Home sales in the capital are on the rise! According to the Ottawa Real Estate Board, sales shot up by a whopping six percent last month compared to May 2022. It looks like the exciting bidding wars we saw during the peak of the market in late 2021 and early 2022 are making a comeback. It’s like a real estate rollercoaster!

Can you believe it? OREB members managed to sell a total of 1,939 residential properties in May, compared to 1,830 during the same period last year. That’s definitely something to celebrate! In fact, it’s the first time we’ve seen a year-over-year increase in sales volumes since February 2022. Woohoo!

With this jump in transactions, OREB president Ken Dekker has even hinted that prices might start climbing again soon. It’s like a game of ups and downs, but who knows, we might be heading towards new record highs after a slight dip. Exciting times, right?

So if you’re in the market for a new home, better buckle up and get ready for some friendly competition. The lack of supply is still limiting buyers’ options, but that just means the stakes are higher and the excitement is greater.

The latest numbers are in, and they reveal some interesting trends in the housing market! Last month, there were a total of 2,822 new listings, which is down eight percent from May 2022. It’s also below the five-year average of 2,922. So, it seems like there’s a bit of a shortage in available options at the moment.

But hey, here’s something cool: the average freehold house spent only 23 days on the market in May, compared to 27 days the previous month. And condos? They were selling like hotcakes too, with an average selling time of just 26 days, down from 33 days in April. It’s like the race is on!

OREB president Ken Dekker mentioned that due to the limited inventory, some neighborhoods are once again becoming “multiple-offer territory.” It’s like a real estate battlefield, but with a friendly twist.

And you know what? Veteran realtor David Sugarman agrees! He’s been witnessing more and more bidding wars erupting as prospective buyers who’ve been patiently waiting on the sidelines realize they just can’t hold back anymore. The market is calling their names!

Of course, the prices haven’t skyrocketed just yet. Multiple interest rate hikes over the past 15 months have made mortgages more expensive, so prices have actually remained below last year’s levels. The average price of a freehold home in May was $745,902, which is a seven percent decrease from the previous year. As for condos, they sold for an average of $442,859 last month, representing a six percent drop from May 2022.

But hey, don’t let that discourage you! It’s all part of the ebb and flow of the market. With more new homes being constructed, we might see a better balance in inventory down the line. After all, people are realizing that they need a place to call home, and they’re eager to find that perfect house.

Hold on to your hats because there’s more exciting news! Average prices in the housing market have actually seen a slight increase from April, and that’s got many real estate insiders buzzing with anticipation. It looks like the market might just be getting ready to heat up again!

According to Dekker, the local industry isn’t witnessing steep price escalations just yet. However, homes are now selling for way more than what buyers were paying at the end of 2022. Can you believe it? The prices are soaring higher and higher!

With demand mounting in Ottawa’s chronically undersupplied market, Dekker predicts that the average sale price will surpass last year’s figures once again in the latter half of 2023. Of course, this is all assuming we don’t see any interest rate hikes. Fingers crossed for stable rates!

But you know what’s even more exciting? Even if the central bank decides to raise its key rate on Wednesday, it probably won’t have a big impact on the market. Our economy is chugging along pretty well, and people’s desire for homes is stronger than ever. They’re saying, “Hey, we’ll take those slightly higher mortgage rates and payments. Maybe we’ll have to skip that fancy vacation this year, but having a house is totally worth it!”

So, get ready for more thrills and surprises in the housing market. It’s like a rollercoaster ride, but with the promise of finding your dream home at the end. Keep your spirits high, your wallets ready, and let’s see what the future holds for Ottawa’s vibrant real estate scene!