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
Judge in Trump's hush money trial threatened to throw witness out of court for behavior on stand
Michael Cohen testified Monday that he stole tens of thousands of dollars from his ex-boss Donald Trump’s company, an admission defence lawyers hope to use to undermine Cohen’s credibility.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
The world's best airline is paying staff a bonus of 8 months' salary
Singapore Airlines will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday.
McGill says pro-Palestinian protest outside senior administrator's home 'crosses the line'
McGill University has denounced a pro-Palestinian protest held Sunday outside the home of one of its senior administrators.
Red Lobster probes 'endless shrimp' losses after bankruptcy filing
U.S.-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing $100 million in financing commitments from its existing lenders, the company said on Sunday.
Katy Perry sings goodbye to 'American Idol'
Katy Perry said her goodbyes on 'American Idol' after seven seasons. On Sunday night’s live 'idol' season finale, a medley of Perry's hit songs were performed, including 'Teenage Dream,' 'Dark Horse' and 'California Gurls.'
Microsoft's AI chatbot will 'recall' everything you do on a PC
Microsoft wants laptop users to get so comfortable with its artificial intelligence chatbot that it will remember everything you're doing on your computer and help figure out what you want to do next.
Judge cites error, will reopen sentencing hearing for man who attacked Nancy Pelosi's husband
A federal judge will reopen the sentencing hearing for the man who broke into Nancy Pelosi's San Francisco home and bludgeoned her husband with a hammer after the judge failed to allow him to speak during his court appearance last week.
Woman, 35, in critical condition after her truck collided with a Via Rail train near Montreal
A 35-year-old woman is in critical condition after the pick-up truck she was driving was struck by a Via Rail passenger train Monday morning in Quebec's Monteregie region.