After two years, Ottawa is finally beginning to experience a more balanced real estate market. During the summer months, real estate typically becomes slower as people turn their focus towards summer vacation.

According to Ottawa Real Estate Board President Penny Torontow, this is not the only factor this season. She comments, “we can likely attribute the decrease in unit sales to economic factors such as rising interest rates and cost of living/ inflation. Other dynamics could include Buyer fatigue combined with a wait-and see approach towards home prices, lack of confidence amongst consumers, and perhaps the uncertainty surrounding back to-work arrangements as a long commute with rocketing gas prices will certainly affect decisions about where to live.”

Residential average sale prices increased by 6% to $772,861 compared to June 2021. Condominium average sale prices increased by 1% to $438,997.

The average days on market in the residential class experienced a 31% increase to 15 days and a 1% increase to 15 days for condominiums.

1,138 residential properties were sold in June 2022, a decrease of 31% since last year. Condominiums sold reached 370 which is a 23% decrease.

Take a look at some of our previous Ottawa real estate market updates to learn more about the local market here.

Conclusion

Prices have not been increasing by as much, which is creating a new benchmark. Ottawa has always been a stable market and is predicted to continue to be this way. Talk of a balanced market is more on the forefront now that the house prices have stabilized and we are not seeing as many bidding wars.

Torontow states, “residential inventory has increased by 38% over last year at this time and is sitting at an approximate 1.9 months’ supply currently. Condominium housing stock has risen 14% to a 1.6 months’ supply for that property class. Once government-pledged supply measures are enacted, we are optimistic that goal is within reach.”