2023 was the slowest year for home sales in Ottawa in 13 years
Ottawa's real estate market had its slowest sales year in 13 years in 2023, as high interest rates and affordability affected the market.
The Ottawa Real Estate Board says 11,978 homes and condominiums were sold in Ottawa in 2023, down 11 per cent from 2022. The average price of homes sold in Ottawa in 2023 was $667,794, down 5.5 per cent from 2022.
It's the fewest homes sold in Ottawa since 2010. According to the city of Ottawa's annual development report, there were 11,336 homes sold in Ottawa in 2010.
The real estate board said throughout 2023 that rising interest rates and affordability were factors in the real estate market.
The Bank of Canada hiked its overnight lending rate from 0.25 per cent in March 2022 to 5 per cent in 2023, and held the rate steady in September, October and December.
In December, 556 homes sold across the city of Ottawa, according to the Ottawa Real Estate Board. That's down 16 per cent from the five-year average.
"Ottawa’s resale market closed out the year in a steady, balanced state," OREB President Curtis Fillier says.
"This could be an early indication that consumer confidence is returning. We likely won’t see the full impact of rate stabilization until the second half of 2024, but December’s activity bodes well for a strong year ahead in Ottawa."
The average price of homes sold in December was $632,487, up 1.7 per cent from the year before.
The Ottawa Real Estate Board says there was 3.3 months worth of inventory available in December.
The Royal LePage Market Survey Forecast says housing prices will increase by an average of 4.5 per cent by the end of this year.
Fillier says buyer confidence has increased in the last few months with the hold of interest rates, but the sellers just aren’t there.
"The days on market have increased a bit and they don’t want their house just sitting," Fillier told CTV News Ottawa. "For a typical family home, you can expect to be in that 30 to 60 day range if the property is listed appropriately. I think we are going to have a good spring."
Marietta d'Alessio, who is trying to sell her property, says she's spent months looking for a buyer.
"We thought that it would have sold by now, but we also understand that with the high interest rates and the fact that there are less buyers out there at this time, it’s going to take a little more time," she said "We had to revaluate about a month ago. We thought there needs to be a bit more incentive."
Despite this, some first-time home buyers say it's still difficult to get into the market.
"I've been seriously looking for about six months but '’ve been on and off looking for about two years," said Jack Bellemare. "I've been funding my housing goals through saving through my workplace, but I find that the prices of houses skyrocket faster than my ability to save for a down payment."
Bellemare says he is hoping to buy within the next year.
"I am trying to save even more to compensate for the increase in price and interest rates. I’ve moved; I now live with roommates, as it’s more of an economical situation for me."
The outgoing president of the Ottawa Real Estate Board says there are positive signs for the market heading into 2024.
"It hasn’t been the easiest market," Ken Dekker said in a statement. “And while we probably won’t return to the peak levels seen in 2022, Ottawa’s market is poised to recover any ground lost in the past year. Both buyers and sellers need extra patience right now, but solid opportunities are there."
--With files from CTV News Ottawa's Natalie van Rooy.
CTVNews.ca Top Stories
BREAKING Canada's GDP rises amid expert fears of rate-hike recession
Statistics Canada says real gross domestic product rose 0.2 per cent in February. The growth followed a 0.5 per cent gain in January.
Fatalities reported after wrong-way crash on Highway 401: police
Ontario's Special Investigations Unit has been called in following a deadly wrong-way collision on Highway 401 in Whitby on Monday night, say police.
NEW Is there a cost to convenience? Canada approves new cancer immunotherapy treatment
A new cancer treatment recently approved in Canada promises to cut treatment time down to just minutes, but experts have differing opinions on whether it's what's best for patients.
Air Canada walks back new seat selection policy change after backlash
Air Canada has paused a new seat selection fee for travellers booked on the lowest fares just days after implementing it.
Canada's new dental program offering hope of free care to millions but many dentists aren't signed up
A new Canadian dental care program is offering the hope of free care to millions, but while 1.7 million people have signed up for the plan, only about 5,000 dentists have done the same.
Province boots mayor and council in small northern Ont. town out of office
An ongoing municipal strike, court battles and revolt by half of council has prompted the province to oust the mayor and council in Black River-Matheson.
Winner of US$1.3 billion Powerball jackpot is an immigrant from Laos who has cancer
One of the winners of a historic US$1.3 billion Powerball jackpot last month is an immigrant from Laos who has had cancer for eight years and had his latest chemotherapy treatment last week.
King Charles III returns to public duties with a trip to a cancer charity
King Charles III returned to public duties on Tuesday, visiting a cancer treatment charity and beginning his carefully managed comeback after the monarch's own cancer diagnosis sidelined him for three months.
NDP says Ottawa's new grocery task force isn't living up to government promises
The federal government says the task force it created to monitor and investigate grocery retailers' practices has not conducted any probes and doesn't have a mandate to take enforcement action.