Home sales over $1 million account for 12 per cent of all properties sold in Ottawa

A new home is displayed for sale in a new housing development in Ottawa on Tuesday, July 14, 2020. Prospective buyers have lamented the torrid pace Canada's real estate market has moved at in recent years, but many feel 2023 may be the year their luck changes. THE CANADIAN PRESS/Sean Kilpatrick

The number of homes sold for at least $1 million accounted for a larger share of Ottawa's housing market in 2022, a new report says.

The 2022 year-end luxury real estate report from Engel & Völkers shows the $1 million-plus market accounted for 12 per cent of all units sold in Ottawa in 2022, up from nine per cent in 2021. In 2020, home priced over $1 million accounted for four per cent of the market.

However, the report notes the rising interest rates blunted price increases in Ottawa, and sale prices in the $1-million to $3.99-million range dropped eight per cent in the last few months of the year.

"The market is balanced, approaching buyer’s market conditions as inventory piles up with new listings exceeding sales volume," the report says.

"At year’s end, the average sold price was $1,271,748 in the $1 – 3.99 million range, down eight per cent from the annual high in August."

The report shows four properties worth more than $4 million sold in Ottawa in 2022. In the $1-million to $3.99 million category, Engel & Völkers says 1,830 residential properties and 38 condos were sold in Ottawa last year.

The report says the Neighbourhoods to Watch in the $4 million plus range are Rocky Point and Grandview Road, Rideau Forest in Ottawa's south end, and Rockcliffe Park.

The neighbourhoods to watch in the $1-million to $3.99-million range are Woodroffe, Qualicum and Greely. According to the report, the up-and-coming neighbourhoods in the $1 million plus range are Glabar Park, Britannia and Beachwood Village/Vanier.

Looking ahead to 2023, Engel & Völkers expect the average price and the overall sales volume to decrease by five per cent from last year.

"Buyers may lose leverage by mid-March as the sharp impact of the interest rate hike cycle wears off. Once buyers and sellers adjust to the new market, the sales volume and average sold price will see typical gains of about five per cent each year," the report said.

The Ottawa Real Estate Board reported 15,288 residential and condo properties were sold in Ottawa last year, compared with 20,289 in 2021.  The average sale price of a home was up 7 per cent in 2022 to $769,623.