Ottawa home sales down 19 per cent in May

Ottawa home sales declined 19 per cent in May as higher interest rates, the cost of living and the powerful storm that hit the capital on the Victoria Day long weekend affected the real estate market.

The Ottawa Real Estate Board says 1,846 residential properties were sold last month, compared to 2,285 in May 2021.

It is the third straight month Ottawa's real estate market has seen a double-digit decrease in sales. There was a 12 per cent drop in March and a 21 per cent decline in April.

The board says May's residential resales underperformed during the typically busiest month of the year.

"Now with this downward trend continuing into May, traditionally the highest performing month for resales, it is quite clear that Ottawa’s resale market is shifting away from the blazing pace of 2021,” Board president Penny Torontow said.

"And if rising interest rates, cost of living, and inflation aren’t enough factors to cause a pullback, the powerful and deadly storm that brought our city to its knees last month has justifiably impacted the market as well."

The average sale price of a home increased eight per cent in May from a year ago to $802,393, while condo prices jumped 11 per cent to $472,920.

"Average prices, while still higher than 2021, are showing signs of adjusting to the pace of the market with a month-over-month decrease of 2% in both property classes," Torontow said.

"In April, we also saw a decline of 1-3%. In contrast, January to March experienced month-to-month increases ranging from 2% to 12%.

"This may be good news for Buyers, including the fact that the months of inventory have increased to 1.2 for residential and 1 month for condominiums. We are still a far cry away from a balanced market, but it finally seems to be moving in the right direction."

The Ottawa Real Estate Board says 3,120 properties entered the market in May, resulting in an 18 per cent increase in residential properties available.

The number of days a home is sitting on the market also increased in May to 14 days, up from 11 days in May 2021.