Wondering what happened in the Ottawa market in 2023?
Source: Royal LePage Team Realty
What do these numbers mean for you?
Let’s review the numbers for the Ottawa market for the past 12 months. Going into 2023, housing prices saw a slight decrease compared to the previous year. However, prices steadily increased month-to-month and by June, we started to see a gain compared to 2022. While the average sales price in Ottawa saw a slight decrease in 2023, don’t let this mislead you!
In September, the Ottawa Real Estate Board (OREB) started utilizing the MLS® Home Price Index (HPI). This provides more comprehensive statistics regarding home sale prices. We can now see the benchmark sale price for all homes sold through the MLS® System in the Ottawa market as well as the benchmark prices for single-family homes, townhomes, and apartments in addition to the traditional average sale price of all homes sold.
What's the difference between 'average sale price' and 'benchmark prices'?
Typically when we talk about how fast real estate values are going up in Ottawa we’re looking at the average price. That is, the total dollar volume of sales is divided by the number of sales made. However, the Canadian Real Estate Association (CREA) MLS® HPI allows us to gauge prices using benchmark prices. Essentially, benchmark prices are the MLS®’ educated guess for the worth of a “typical” home in a given area.
This estimate considers the most common features such as age, size, bedrooms, and bathrooms. By utilizing benchmark prices, we get a more accurate reflection of housing prices, rather than simply calculating averages based on all homes sold.
Source: CREA
Source: OREB
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