2023
2023 Market Conditions : BALANCED MARKET
2023 Average Price: $683,031.44 (Estimate)
2022 Average Price: $656,761.00 (Jan 1 – Oct 31)
OTTAWA AT A GLANCE
Notable trends, the factors behind them and what’s in store for 2023
The Ottawa housing market currently favors sellers, which is expected to continue into Q3 of 2023, at which point it is likely to shift into balance. First-time homebuyers are driving demand in the region, which is expected to continue into 2023. Affordably priced townhomes are seeing the most activity. Key trends impacting the Ottawa housing market in 2023 include an increase in multigenerational living, less upward movement as housing prices change, and an influx of first-time buyers entering the market. Rising interest rates will be a dominant theme next year, and likely to result in a cooler market. New construction in Ottawa is mostly halted due to increased development fees and material and labor shortages
ONTARIO
In London, Kitchener-Waterloo, Barrie, the GTA, Durham, and Lakelands West
(Georgian Bay area) average residential sale prices are expected to decline by two to
15 per cent in 2023. Sudbury, Hamilton-Burlington, Oakville, Brampton, Ottawa,
Mississauga, Muskoka, Niagara, Windsor, York Region, Haliburton, Peterborough and
The Kawarthas, and Kingston are all expected to see average residential sale prices increase
between two to eight per cent in 2023. 40 per cent of regions in Ontario Canada are
balanced markets, including London, Kitchener-Waterloo, Oakville, Barrie, Toronto,
Windsor, Lakelands West and Kingston. Hamilton-Burlington, Brampton, Mississauga, and Niagara are buyer’s markets, while Sudbury, Muskoka, Durham York Region, Haliburton, Ottawa and Peterborough and the Kawarthas favor sellers.
As single-family dwellings have become unaffordable to rent, multi-unit properties and tiny or coach home conversions will likely increase. Average sales are expected to increase 1.5% in 2023. First-time buyers are firm on finishes, style, and location, with many choosing not to spend money even on small renovations. As single-family dwellings have become unaffordable to rent, multi-unit properties and tiny or coach home conversions will likely increase.
INTERESTING FACTS:
CONSUMER CONFIDENCE:
73% of Canadians believe home ownership is the best long-term investment they can make. This is up from 49% in 2021
NATIONAL AVEREAGE PRICE EXPECTED TO DECREASE 3.3%
The biggest price declines are expected to occur in Ontario and Western Canada
% INTEREST RATES
45% of Canadians are concerned that further interest rate hikes will impact their ability to buy or sell a home in 2023
OWNERSHIP IN CANADA
60% of Canadians said they own their home. 17% don’t own but expect to in the future.
ENVIRONMENT
57% of Canadians believe climate change/weather-related events will impact where they chose to live in the next 5 years
$ AFFORDABILITY
64% of Canadians would move for an affordable home, but 50% wouldn’t go farther than 100 km
SALES EXPECTED TO INCREASE IN 34% OF MARKETS ANALYZED
This trend is more prominent in Ontario, where 11/21 regions analyzed could see more sales in 2023
ECONOMY
50% of Canadians said taxes are their biggest concern when buying a home in the next 5 years
55% OF REGIONS LIKELY TO SHIFT TO BALANCE OR BUYER’S MARKET
The trend has already started to materialize due to current economic conditions