Home sales in Ottawa fell 19 percent in May as higher interest rates, the cost of living and the severe storm that hit the capital on the long Victory Day weekend went up. affect the real estate market.
The Ottawa Real Estate Board says 1,846 residential properties were sold last month, up from 2,285 in May 2021.
This is the third month in a row that the Ottawa real estate market has seen a double-digit decline in sales. There was a 12% drop in March and a 21% drop in April.
The council says May home sales were lower during the busiest month of the year.
“Now, with this downward trend continuing into May, which is traditionally the highest-yielding month for resale, it’s pretty clear that Ottawa’s resale market is moving away from the dazzling pace of 2021,” he said. said board chair Penny Torontow.
“And if rising interest rates, the cost of living and inflation are not enough factors to cause a setback, the powerful and deadly storm that brought our city to its knees last month has also justifiably affected the market “.
The average sale price of a home rose eight percent in May from a year ago to $ 802,393, while condo prices rose 11 percent to $ 472,920.
“Average prices, while still higher than in 2021, show signs of adjusting to the market pace with a month-on-month decline of 2% in both real estate classes,” Torontow said.
“In April, we also saw a 1-3% decline. In contrast, from January to March they experienced month-on-month increases ranging from 2% to 12%.
“This may be good news for buyers, including the fact that inventory months have risen to 1.2 for residential and 1 month for condominiums. We are still a long way from a balanced market, but it finally seems moving in the right direction “.
The Ottawa Real Estate Board says 3,120 properties entered the market in May, an 18% increase in available residential properties.
The number of days a house is on the market also increased in May to 14 days, from 11 days in May 2021.