'The madness is over': Ottawa property market heading for stability, but home prices still rising

He said the real estate market is still hot. But compared to last winter, buyers are more likely to fight over homes.

"The madness is over," Leoum said on Sunday, but that doesn't mean it will be cheaper to buy a house in the nation's capital.

“What we have seen in the news is that prices are going down and sellers are panicking. That may be the case elsewhere in the country, but in Ottawa prices are still going up in 2021-2022. ”said Rhéaume.

On Thursday, the Ottawa Real Estate Commission released his analysis of July listings and sales, declaring a "serious slowdown" in the local home resale market.

"July figures reveal that buyers are actually pulling the brakes more than would normally be expected during a midsummer sales slump," said the board. 's President Penny Torntow said when releasing the latest stats.

According to its member realtors, in July 2022 he sold 1,100 residential properties, compared with his 1,718 in July 2021. Did. Statistics are obtained from Multiple Listing Service (MLS) listings.

July 2022 sales were well below his five-year monthly average of 1,691 for July.

Prices are still rising, but not on the steep trajectory seen earlier in the pandemic.

Board figures show In July, the average residential sales price was $716,354, up 5% from a year ago. For condos, the July 2022 average sales price increased 1% to $425,694 compared to the same month in 2021.

In terms of year-to-date average sales prices as of July, the Board found residential property prices in the first seven months of 2022 to be $805,238, compared to the same period in 2021. 11% increase. Condos, on the other hand, were $461,557, up 9%.

Rhéaume said the resurgence of standards from some time ago signaled a shift in the market.

He recently commissioned one of his buyers to purchase a townhouse subject to financing and a home inspection. "It was probably the first time in three years, at least for him," Rhéaume said of the condition. Besides, he was able to negotiate the price.

Records of the 250-agent office Wendy Bell, his broker, said news of rising interest rates and inflation had impacted the market since the spring.

"That puts the brakes on things," Mr. Bell said, adding that further rate hikes would be "devastating."

Bell seeks to educate buyers and sellers about what is happening in the local market.

While sellers have seen real estate move well above asking prices during the pandemic, buyers have recently seen the market I am reading that we are rapidly returning to normal. Both scenarios are not necessarily playing out in Ottawa.

Bell said the home didn't need to be staged during the buying frenzy over the pandemic, but now she's asking sellers to use less paint and clutter to attract prospects. Buyers are encouraged to make sure their homes are tidy, including removing any clutter.

Bell said the coming months will provide better indicators for the local property market as people return from their summer vacations.

"Things will return to normal in the fall with a more balanced market," Bell predicted.

Some sellers wonder why their homes aren't attracting the massive offers some neighbors received months ago, according to her broker Dawna Erskine. He said he was confused.

"There's been a dramatic shift like this," says Erskine, who believes we're "back to pre-COVID times" when it comes to housing prices.

While trying to assess the true value of a property for an avid buyer client and bid on a home against other customers willing to pay very high prices, Mr. Erskine said the pandemic had been a "nightmare".

"The frequency with which we guide (and advise) buyers not to buy this is immeasurable," Erskine said.

"Are winners really winners or losers?"

Erskine's optimistic stability will return to the real estate market in the coming months.

"It's going to be more balanced and I'm really looking forward to it."

jwilling@postmedia.com

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