Ottawa home prices drop $143,000 year-over-year

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 average cost of a new home in Ottawa dropped by $143,000 year-over-year last month, as home prices continue to fall from their highest peak one year ago.

New statistics from the Ottawa Real Estate Board shows the average sale price for a new home in March was $710,070, down 17 per cent from March 2022. The average sale price for a new home in Ottawa was $853,615 in March of last year.

The 17 per cent decrease in home prices in Ottawa last month was the largest monthly drop over the past year.

Despite the drop in home prices, the Ottawa Real Estate Board says the March sales numbers show "signs of spring surge sprouting."

A total of 1,194 residential properties were sold in March, compared to 2,003 in March 2022.

"The recent rise in transactions is a sign of typical spring activity, even if we’re behind the pandemic peaks of 2022," OREB president Ken Dekker said. "As spring unfolds, so too will a clearer picture of Ottawa’s balanced market state."

The average sale price for a condominium in Ottawa dropped 13 per cent in March to $418,670. The Ottawa Real Estate Board says sale prices for homes and condos increased from February to March.

"As evidenced by the recent climb in freehold prices, Ottawa’s resale market is stabilizing along with the interest rate," Dekker said.

"Condos remain steady due to their lower price point, there’s more affordability based on the current interest rate structure. Prices are certainly headed in the right direction—if you are looking forward."

The Ottawa Real Estate Board says the number of homes for sale increased across Ottawa in March, and well-priced homes are selling.

The 2,089 new listings in March were up 53 per cent from February. The five-year average for new listings in March is 2,474.

“Well-priced and well-prepared homes are selling," Dekker said.

"Buyers can benefit from the same data along with their negotiation expertise to guarantee they are receiving the best value for their dollar."