Ottawa home sales down 35 per cent in July
Rising interest rates and the cost of living cooled Ottawa's real estate market in July, with home sales falling 35 per cent from the same time last year.
The Ottawa Real Estate Board says 1,110 residential properties were sold in Ottawa last month, compared with 1,718 homes in July 2021.
"We are witnessing a profound slowdown in Ottawa’s resale market," OREB President Penny Torontow said.
"July’s numbers reveal that Buyers are indeed putting on the brakes more heavily than what is typically expected during the mid-summer sales dip. Aggressive interest rate increases are surely impacting the decision to buy at the moment as well as other factors that I mentioned last month."
The 35 per cent drop in home sales in Ottawa in July follows a 29 per cent decrease in June, when 1,508 properties were sold in Ottawa compared to 2,122 in June 2021.
The Bank of Canada increased its key interest rate one percentage point in mid-July, the largest hike in 24 years.
The average sale price of a residential-class property was $716,354 in July, up five per cent from a year ago. The average sale price for a condominium-class property in July was $425,694, an increase of one per cent from 2021.
Torontow says the single-digit increases align with a "traditional stable year-over-year price growth" in Ottawa.
"It is important to point out that average prices tally the entire spectrum of home sales across the city and region. If you look from neighbourhood to neighbourhood, there are so many differing characteristics and attributes, price increases will certainly fluctuate depending on where you live," Torontow said.
"If you are selling your home, now is the time to be patient as days on market return to more normal timeframes. There are still many Buyers out there, but with more choice, they have less pressure and may take their time."
With year-to-date average sale prices at $805,238 for residential and $461,557 for condominiums, the values represent an 11 per cent and 9 percent increase over 2021, respectively, according to the Ottawa Real Estate Board.
Torontow says while home sales were down in July, there was a "silver lining."
"With more properties continually being added to inventory, we are on the cusp of returning to a balanced market, and that is good news," Torontow said.
"July saw 2,338 new listings added to the housing stock, which is on par with the 5-yr average and 5% lower than last year at this time. Our inventory for residential-class properties is currently around 2.9 months and 2.5 months for condominiums. A market is considered balanced with at least four months of supply, so we are well on our way to that paradigm."
The Toronto Real Estate Board reported a 47 per cent drop in home sales in July compared to July 2021.
CTVNews.ca Top Stories
India's foreign minister reacts to murder charges, claims Canada welcomes criminals
India's Foreign Affairs Minister accused Canada of welcoming criminals from his country in response to the RCMP's recent arrests in a homicide that has roiled tensions between the two countries.
BREAKING 15-year-old boy stabbed in Ottawa on Thursday dies
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
Dash cam catches moment suspected drunk driver hits parked car, sends it careening into North Shore flower shop
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
Lawsuit against Meta asks if Facebook users have right to control their feeds using external tools
Do social media users have the right to control what they see — or don't see — on their feeds?
Princess Anne lays wreath at Battle of Atlantic ceremony; honours late Queen
Princess Anne saluted Canadian veterans and current forces members today during a ceremony at British Columbia's legislature cenotaph commemorating the Second World War's Battle of the Atlantic.
El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
As storms moves across Texas, 1 child dies after being swept away in floodwaters
A child in Texas died Sunday after being swept away in floodwaters as storms swept across the state.
Nylander defends Leafs' core after playoff exit, Toronto again picks up the pieces
The Maple Leafs battled back from a 3-1 series deficit against the Boston Bruins with consecutive 2-1 victories - including one that required extra time - in their first-round playoff series to push the club's Original Six rival to the limit before suffering a devastating Game 7 overtime loss.
Amid climate change warnings, Canadians lukewarm on electric vehicles
Amid scientists' warnings that nations need to transition away from fossil fuels to limit climate change, Canadians are still lukewarm on electric vehicles, according to a study conducted by Nanos Research for CTV News.