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.