Where will the real estate market be in 2023?

Here are our predictions. We also give you the predictions for 2023 from CMHC, REMAX and Royal Lepage.

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Here are our predictions about the real estate market in Ottawa in 2023 and 2024. We'll start off with some predictions from CMHC and the two largest brokerages in Ottawa.

CMHC: Unit sales will be 19,150, down 2.2% versus 2022. Average Price of $760,000, up by 3.4% over 2022.

ReMax: Unit sales will increase by 1.5% and house prices will go up by 4%.

Re/Max also thinks 2023 will be a Sellers Market that will switch to a more balanced market in the 2nd half of 2023.  They also expect to see more multi-generational homes and many more first-time buyers stepping up to buy real estate.

real estate market outlook for 2023

Royal Lepage: Average price will be $740,000, which is an increase of 2% over 2022.

Looking Ahead:

  • The last two thirds of 2022 was a correction of the pandemic excess of price increases.
  • This correction will continue, but will moderate into the second half of 2023.
  • The Bank of Canada is expected to raise interest rates by 0.5% to 1% early in 2023.
  • First half of 2023 will have opposing forces:

Buyers struggling with rising mortgage rates vs The traditional busy spring market

  • Expect the unexpected from covid variants, Russia/Ukraine, China/Taiwan invasion and chip crisis.

If you cannot influence or take precautions, don't worry about it.

I'm not making a prediction, I'm rolling with the punches.

And for our own personal predictions, we think it's going to be a bumpy ride for the first half of the year as interest rates continue to rise, and we also think there will be some stability in the second half of 2023.

We'll likely see sales and prices up 1% or 2%, no big deal either way, but stability is the key and we do not think that interest rates will go down at all till at least the following year.