Market Update June 2023
Ottawa & Lanark County Real Estate Market Update June 2023 statistics are in for another month. Year to date in Ottawa area and Lanark County area there were fewer residential properties sold compared to the same time last year.
There was a decrease of average sales prices in Ottawa by 12% and 14% in Lanark County. These percentages are less than last month showing a steady increase in average sale price. Are we trending up or is this the normal spring surge? With summer around the corner, graduations, and vacations people minds it will be interesting to see if the market keeps trending up or takes a stable approach.
Keep in mind this is a very general market update and specific to your area can be different if there is no inventory.
The Bank of Canada has increased the overnight rate once again by .25%.
This means prime rate is now 6.95%. All variable rate mortgage holders will see increases in their rates and payments due to this decision.
5-year bonds have also been increasing steadily, which is driving the fixed rate increases we have been seeing for the past couple weeks.
When the rate announcement took place today, we saw a steep increase in the 5-year bond going from 3.531% to 3.70% this tells us more fixed rate hikes are likely to come.
Why is the Bank of Canada continuing to increase?
In April, the inflation rate had increased by .1. Going from 4.3% to 4.4%. This was the first increase since last June, where we saw inflation around 8%
The economy being in good shape, and spending being high is causing inflation to stay high, good for the economy but not good for the Bank of Canada.
For more details on the Ottawa & Lanark County Real Estate Market Update June 2023 click here or the above graph.
As always if you have any questions please reach out and if you need to talk to a mortgage broker for a new mortgage or renewal reach out to me.
Download the PDF – June 2023 – Market Snapshot