Ottawa home sales down 33 per cent in September as buyers remain hesitant, OREB says

Ottawa saw a 33 per cent decrease in home sales in September, as rising interest rates continued to cool the real estate market.

The Ottawa Real Estate Board says 1,080 residential properties sold in Ottawa last month, down from 1,601 properties in September 2021.

"September’s lower sales performance reflects continued hesitancy among buyers as they watch interest rates rise and consider the speculation surrounding price trends," Ottawa Real Estate Board president Penny Torontow said.

"With rising interest rates, the mortgage stress test has sidelined some potential buyers, while others are likely scrutinizing their budgets for affordability amidst inflation and cost of living increases."

The Bank of Canada raised its overnight rate by 75 basis points in September, moving its policy rate to 3.25 per cent from 2.5 per cent.

Home sales in Ottawa decreased 27 per cent in August, 35 per cent in July and 29 per cent in June.

The average sale price for a residential class-property dropped 0.5 per cent in September from 2021, to $706,658.  The average sale price for a condominium-class property in September was $450,987, an increase of six per cent from 2021.

"Prices are stabilizing with slight month-to-month movement, whereas, year over year we are seeing the slow and steady increases that the Ottawa resale market is known for," Torontow said.

The sale price for a home decreased in Ottawa in September from August.

The Ottawa Real Estate Board says the average sale price for a residential-class property was $706,658 in September, down from $707,712 in August.

Condominium prices increased from $421,996 in August to $450,987 in September.