Ottawa home prices expected to drop 2 per cent this fall, Re/Max predicts

A for sale sign displays a sold home in a development, in Ottawa, on July 6, 2015. (THE CANADIAN PRESS/Sean Kilpatrick)

The average price to buy a new home in Ottawa in expected to fall two per cent in the final months of the year.

The Re/Max Canada Fall Housing Market Outlook Report released on Wednesday says rising interest rates, record inflation and global and economic uncertainties will impact market activity in Ottawa and across Canada through the fall.

Prices are estimated to fall two per cent in Ottawa in the September to December period, while the number of homes sold is expected to drop three per cent.

According to the report, the average residential sale price in Ottawa dropped 1.1 per cent through the first eight months of 2022 compared to 2021. The average residential sale price in Ottawa in Jan. 1 to Aug. 31 was $550,993.75, compared to $557,314.63 over the same period in 2021.

The report says Ottawa's housing market is expected to "regain balance in 2023", but low inventory will continue to place upward pressure on prices.

Re/Max Canada's report says home prices are expected to fall five per cent in Kingston over the final few months of the year, while the number of homes sold will drop 10 per cent.

Across Canada, the national average home sale price will fall 2.2 per cent over the final few months of the year, according to the report.