Ottawa House Prices Dropped This Summer But Are Expected To Rise Again At The End Of 2022
Expert says "demand continues to outpace supply."
Town houses in Ottawa.
House prices in Ontario are finally cooling off a little this summer, and it's such a relief!
According to Royal LePage's latest forecast, the average cost of a home in Ottawa dropped by 1.1% in the second quarter of this year.
In Royal LePage's house price composite, the real estate company noted that the average cost of a home in 2022, including both single-detached houses and condos, dipped from $809,200 to $800,300 from the first quarter to the second.
"Despite recent interest rate hikes and increasing home prices, buyer demand remains strong in the city of Ottawa. However, in recent months homebuyers are proving more cautious, taking more time before making an offer and reintroducing conditions," said John Rogan, broker of record for Royal LePage, in a news release.
\u201cRoyal LePage lowers 2022 home price forecast to 5% over 2021 to reflect softening markets in Ontario and BC. Uneven market recovery expected as some regions experience continued price growth. Read the latest blog to learn more: https://t.co/kmx8y9tNbv\u201d— Royal LePage Canada (@Royal LePage Canada) 1657717335
"Inventory is beginning to creep up slowly, but demand continues to outpace supply. And, in some high-demand areas, a low supply of housing continues to drive multiple-offer scenarios," Rogan added.
Ottawa's "booming job market and relative affordability" are looking good to buyers across Canada, according to Rogan. The real estate expert said that summer slowdowns are nothing out of the ordinary but expects average "prices will level off by the end of the year," with costs estimated to peak by 10%. Uh oh, not again...
Ottawa's home sales have also dropped by nearly 30% too, according to the Ottawa Real Estate Board.
In June, the board saw 614 fewer sales than last year's numbers. OREB President Penny Torontow attributed that slow down to a typical seasonal ebb, rising interest rates, and through-the-roof living costs. No kidding!