A persistent pattern of buyers taking a wait-and-see approach is continuing as the August 2023 new-home sales numbers show.
New-home sales were 174 in August, according to the latest monthly report prepared by PMA Brethour Realty on behalf of the Greater Ottawa Home Builders’ Association (GOHBA). While that’s up an astonishing 216 per cent compared to August 2022, when only 55 homes were sold, it’s still well off the five-year average of 354.
“It’s a positive sign that it’s now five straight months of sales that have eclipsed 2022 numbers, although they are half of the five-year average,” says GOHBA’s executive director, Jason Burggraaf. “With the increase in construction costs and stubborn high interest rates, it seems like people are waiting — or are being forced to wait — on the sidelines until they feel more confident to jump into the market.”
PMA’s Ottawa president, Cheryl Rice, agrees with Burggraaf’s positive perspective. “That the Bank of Canada held its policy rate at five per cent this month is good news for the consumer, particularly those seeking financing for a new home.”
There were some losses
But she concedes that there were some losses in August. “Year-to-date sales for the month decreased by 30.2 per cent compared to 2022. Last month’s sales also saw a 9.8 per cent decrease from July, however, this is normal for August.
“More telling will be September’s new-home sales, which typically increase as we approach the fall market. High demand and the welcomed pause in interest rate hikes are pointing to improved sales in the coming months.”
September will also be telling as builder activity increases, with multiple builders launching new developments that have been waiting in the wings, including:
- Abbott’s Run in Stittsville by Minto Communities — has already launched
- Succession Court in Stittsville by Glenview Homes — launches Sept. 23
- Embrun Central in Embrun by eQ Homes — launches Sept. 23
Tartan Homes jumped the gun on fall launches, releasing Idylea in Stittsville in August.
Abbott’s Run in particular is an example of builder efforts to introduce “innovative and more affordable options for buyers,” says Rice, citing Minto’s release of redesigned townhomes, some of which can accommodate up to six bedrooms for multigenerational living, as well as three-storey single-family floor plans on 28-foot lots.
