Rising interest rates and the cost of living cooled Ottawa’s housing market in July, with home sales down 35 per cent from the same time last year.
The Ottawa Real Estate Board says 1,110 residential properties sold in Ottawa last month, compared to 1,718 homes in July 2021.
“We are witnessing a deep slowdown in Ottawa’s resale market,” said OREB President Penny Torontow.
“July numbers reveal that buyers are holding back harder than normally expected during the mid-summer sales slump. Aggressive interest rate hikes are certainly affecting the decision to buy at this time, as well as other factors I mentioned last. month.”
The 35% drop in Ottawa home sales in July follows a 29% decline in June, when 1,508 properties sold in Ottawa compared to 2,122 in June 2021.
The Bank of Canada raised its key interest rate by a percentage point in mid-July, the biggest hike in 24 years.
The average sale price of a residential-class property was $716,354 in July, up five percent from a year ago. The median sale price of a condominium property in July was $425,694, up 1% from 2021.
Torontow says the single-digit increases align with “traditional year-over-year stable price growth” in Ottawa.
“It’s important to note that median prices represent the entire spectrum of home sales across the city and region. If you look from one neighborhood to another, there are so many different characteristics and attributes, the price increases, they will certainly fluctuate depending on where you live,” Torontow said.
“If you’re selling your home, now is the time to be patient as market days return to more normal terms. There are still plenty of buyers, but with more options, they have less pressure and can take their time.”
With year-to-date average sale prices of $805,238 for residential and $461,557 for condos, values represent an 11 percent and 9 percent increase over 2021, respectively, according to the Real Estate Board Ottawa roots.
Torontow says that while home sales dipped in July, there was a “silver lining.”
“With more properties continually being added to inventory, we’re on the verge of returning to a balanced market, and that’s good news,” Torontow said.
“2,338 new listings were added to the housing stock in July, which is on par with the 5-year average and 5% lower than this time last year. Our inventory of type residential is currently about 2.9 months and 2.5 months for condos. . It’s considered a balanced market with at least four months of supply, so we’re well on our way to that paradigm.”
The Toronto Real Estate Board reported a 47% drop in home sales in July compared to July 2021.