Ottawa is experiencing a much slower market this summer. In July, more properties started sitting on the market longer as Buyers slowed down on purchasing. The interest rate increases and inflation were factors, as well as the fact that there were more properties on the market to choose from. Buyers now have the ability to take their time.

OREB President Penny Torontow states, “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.”

July Stats

Residential average sale prices increased by 5% to $716,354 compared to July 2021. Condominium average sale prices increased by 1% to $425,694.

The average days on market in the residential class experienced a 27% increase to 20 days and a 11% increase to 20 days for condominiums.

840 residential properties were sold in July 2022, a decrease of 36% since last year. Condominiums sold reached 270 which is a 34% decrease.

“The double-digit average price increases that we saw in the past couple of years right up until the early spring have now morphed into single-digit increases, which aligns more with our traditional stable year-over-year price growth,” Penny comments.

“I also believe it is time for the federal government to adapt and reassess the stress test. It was originally designed when rates were very low to ensure Buyers could manage rate hikes. With interest rates where they are now, they have to qualify at a 7-8% rate which no longer makes sense and takes many Buyers out of the market.”

It will be interesting to see how the market continues to change in the coming months and how the fall market will be, with the next interest rate increase coming in September.