It’s September 2nd, which means only 20 days until Summer is officially over. This summer has been interesting for Ottawa real estate, to say the least, but what’s to come for the fall season?
Here’s Our Fall 2022 Market Outlook for Ottawa!
Royal LePage is forecasting just a 5% increase in the aggregate price of a home in Canada in Q4, a downward revision from their prediction made in Q1 of 2022. The change is due to more aggressive than expected interest rate hikes by the Bank of Canada, which have drastically impacted buying power.
On July 13th, the Central Bank of Canada increased the overnight rate to 2.5%, the biggest increase since 1998 and the highest level since 2008. This resulted in a prime lending rate of 4.7%, the highest its been in more than ten years.
Next Wednesday, September 7th, there will be another announcement from the Bank of Canada regarding overnight rate targets, which may further impact the market.
Trends & Predictions on Ottawa Real Estate from Royal LePage are as follows:
In Q2, the aggregate home price in Ottawa increased by 11.5% year-over-year to $800,300 but saw a 1.1% decrease from Q1.
The price of single-family detached homes rose by 10% in Q2, reaching an average of $903,500, while condominium prices dropped by 1% to $416,900.
The aggregate price of a home in Ottawa is expected to increase by 10% year-over-year in Q4, with the aggregate home price reaching $813,670. Comparatively, RLP predicts only a 5% increase across the Canadian market as a whole. RLP predicts Ottawa will have the second highest increase, trailing the Greater Montreal Area by 2.5%.
While we are experiencing uncertainty throughout the economy and the real estate market, Ottawa is still positioned well. Although there will be a slight downturn in sales activity and prices, as we’ve seen throughout the summer, many factors contribute to Ottawa’s remaining a mostly stable market.
Inventory is slowly starting to creep up, but demand continues to outpace supply in many areas, creating some multiple offer scenarios. The drop in sales volume is quite normal for the summer months, so we may see an increase throughout the fall.
If you’re looking to buy a home this fall season, get your pre-approval and rate lock as quickly as possible. Remember that rate locks last anywhere from 90-120 days, and within that period, rates can increase dramatically, as we saw with the July 13th increase.
We hope this outlook has provided you with some insight into the Ottawa market. If you have any questions regarding the market, give us a call or reach out through social media. We’d love to advise you on how to navigate these unprecedented times.