Ottawa's Real Estate Market Saw Home Sales Drop By Almost 30% Last Month & Here's Why

This may be your chance to enter the housing market, Ottawa homebuyers! As per the Ottawa Real Estate Board's latest numbers, last month's home sales are down nearly 30%, but more listings are up and the market is apparently finally getting back to normal for the city.

According to the latest OREB news release, housing sales are cooling way off this summer. Sales in June have taken a 29% dip with 614 fewer sales for the month compared to what it saw last year.

"After the frenzy of the past two years, we are witnessing Ottawa’s resale market normalize in 2022 and shift towards the more traditional seasonal ebb and flow cycle," said OREB President, Penny Torontow. "We can likely attribute the decrease in unit sales to economic factors such as rising interest rates and cost of living/inflation."

Members of the board reportedly sold 1,508 homes in June compared to 2,211 that were sold in 2021. Those numbers include residential properties and condos, which are also down by 31% and 23%, respectively.

When looking at Ottawa's five-year average, the city's home sales are also down, by about 458 units. Typically, the OREB sells 1,966 homes each June. Torontow, said that June often tapers off during the summer holidays, but this June was the slowest it's been in a decade. Sheesh.

According to Torontow, Ottawa could be experiencing buyer fatigue and a "wait-and-see approach" to buying homes. She also said that low consumer confidence, work uncertainty, lengthy commutes, and sky-high gas prices might be influencing buyers right now.

But Ottawa home buyers are also facing higher prices this year. The cost of condos went up 1% from last year, averaging $438,977. And residential properties increased by 6% from last year, averaging $772,861. Ouch.

"With year-to-date average sale prices at $815,797 for residential and $465,573 for condominiums, these values represent an 11 per cent and 10 percent increase over 2021, respectively."

Fortunately, the Ottawa market tends to be stable over the long-term and the city is unlikely to "experience the significant dips that other regions may see," according to Torontow. Good thing there were 3,213 new listings added in June!

So, if you're looking to get into the market, the OREB suggests that it may be the "optimal time" to start looking for that home you've always wanted.