Rising interest rates and the cost of living cooled the Ottawa real estate market in July, with home sales falling 35 percent from the same time last year.
The Ottawa Real Estate Board says 1,110 homes were sold in Ottawa last month, compared to 1,718 homes in July 2021.
“We are witnessing a deep slowdown in the Ottawa resale market,” said OREB president Penny Torontow.
“July figures show that buyers are indeed pushing the brakes harder than is normally expected during the mid-summer sales slump. Aggressive rate hikes are certainly impacting the decision to buy at this point, as are other factors I recently discussed. named month.”
The 35 percent decline in Ottawa home sales in July follows a 29 percent decline in June, when 1,508 homes were sold in Ottawa, compared to 2,122 in June 2021.
The Bank of Canada raised its key interest rate by one percentage point in mid-July, the largest increase in 24 years.
The median sale price of a premium home in July was $716,354, up five percent from a year ago. The average selling price for an apartment building in July was $425,694, a one percent increase from 2021.
Torontow says the single-digit increases are in line with “traditional stable year-on-year price growth” in Ottawa.
“It is important to point out that average prices correspond to the entire spectrum of home sales in the city and region. If you look from neighborhood to neighborhood there are so many different features and characteristics, price increases will certainly fluctuate depending on where you are. lives,” said Toronto.
“If you’re selling your house, now is the time to be patient as the market days return to more normal timeframes. There are still a lot of buyers out there, but with more choice, they are less busy and can take their time.”
With annual average sales prices of $805,238 for homes and $461,557 for condominiums, the values represent an 11 percent and 9 percent increase, respectively, from 2021, according to the Ottawa Real Estate Board.
Torontow says that while home sales fell in July, there was a “silver edge.”
“With more properties being continuously added to the inventory, we are about to return to a balanced market, and that is good news,” Torontow said.
“In July, 2,338 new homes were added to the housing stock, which is in line with the 5-year average and 5% lower than last year at this time. Our inventory for class homes is currently about 2.9 months and 2. 5 months for condominiums A market is considered to be balanced with at least four months of supply, so we are well on our way to that paradigm.”
The Toronto Real Estate Board reported a 47 percent decline in home sales in July compared to July 2021.