Condo sales drop in Ottawa

The demand for housing is up, but the same can't be said for condo sales.

"There's more listings available but sale volume is completely attributed to the higher cost of borrowing," Geoff Walker, of the Walker Real Estate Group, said on Wednesday.

A report from Re/Max says condominium sales fell in all but two of Canada's seven largest markets compared to last year. The latest numbers from the Ottawa Real Estate Board indicate condo sales are down 16.1 per cent.

According to OREB president Ken Dekker, one of the driving factors is the higher cost to borrow money for a new home.

"Interest rates are affecting affordability," he said.

According to the report, the average price of a condominium in Ottawa is just under $432,600, compared to $457,965 last year.

Another issue is a lack of inventory.

"We’re not building enough," Dekker said. "Builders are skittish, so they’re not building as many. Supply issue is going to get worse and people can only afford so much. Wages have not kept up with price of homes and you have inflation out of control."

With the cost of living skyrocketing and price of affordable housing also up, first-time buyers are looking to places like Kanata, Orleans and Barrhaven where they may get more bang for their buck.

"There's still people working from home," Walker said. "If you're buying a $400,000 condo downtown for 800 square feet or for $400,000 you can maybe get 1,300 or 1,400 square feet in Barrhaven, Kanata, Orleans."