The Ottawa real estate market continues to slow in September as Buyers are mindful of interest rate increases and home prices stabilizing.

“September’s lower sales performance reflects continued hesitancy among Buyers as they watch interest rates rise and consider the speculation surrounding price trends. 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,” says Ottawa Real Estate Board President Penny Torontow.

“On the other hand, we have seen an uptick in the number of new listings entering the market, which were not only higher than last month but also last year, and the five-year average. This trend continues to bring the resale market into more balance, which generally means more time for Buyers and Sellers to weigh their options and to adjust according to their needs,” she adds.

September Stats

Residential average sale prices increased by 0.5% to $706,658 compared to September 2021. Condominium average sale prices increased by 6% to $450,987.

The average days on market in the residential class experienced a 57% increase to 29 days and a 70% increase to 42 days for condominiums.

816 residential properties were sold in September 2022, a decrease of 34% since last year. Condominiums sold reached 264 which is a 27% decrease.

Ottawa has always been a stable market and is predicted to remain that way. “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 states.