The Ottawa real estate market continues to regulate this Fall as home Buyers adjust to recent interest rate increases.

“After the volatility of the past two pandemic years, which was unsustainable, the market is correcting and adjusting,” says Penny Torontow, Ottawa Real Estate Board President. “The slowdown is compounded by Bank of Canada interest rate increases, which further exacerbates buyer hesitancy and weakens people’s purchasing power—especially first-time homebuyers.”

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“Demand is still high, and with increasing inventory available, Buyers have more choices and time to shop for their new home. However, the ongoing speculation about where prices and interest rates are headed shakes consumer confidence and has made some prospective Buyers take a wait-and-see approach.” Toronto adds.

Residential average sale prices decreased by 5.4% to $677,873 compared to October 2021. Condominium average sale prices increased by 9% to $445,691.

The average days on market in the residential class experienced a 57% increase to 29 days and a 31% increase to 29 days for condominiums.

758 residential properties were sold in October 2022, a decrease of 40% since last year. Condominiums sold reached 229 which is a 44% decrease.

“Buyers and Sellers need to carefully analyze their own unique circumstances. No one can predict with absolute certainty what will happen next year, but in the highly employed and stable Ottawa market, real estate has been and continues to be a good investment over time,” states Torontow.