The Ottawa Real Estate Board’s August 2023 resale report shows a modest uptick in activity but continues to paint a grim picture for many would-be buyers.
Realtors sold 1,196 properties through the board’s Multiple Listing Service (MLS) system last month. That was up six per cent from the same month last year but still significantly below the five-year average of 1,525 for August.
Sales comprised 903 non-condo homes and 293 condominiums.
While increased immigration and a large Canadian cohort entering the market means there is no shortage of demand, “the lack of suitable, affordable housing is a hindrance,” said board president Ken Dekker in a statement. “High borrowing costs and economic uncertainty are impacting both sellers and buyers, which we expect will continue to result in further market fluctuations.”
Sales results to date and the less-than-buoyant outlook run counter to the board’s somewhat brighter outlook through the spring and early summer and what some foresaw at the beginning of this year. For example, industry analyst PMA Brethour Realty in its annual look-ahead in early February said: “The second half of the year looks more promising … The pent-up demand is enormous… the floodgates will open, and we’ll see a resale surge maybe as early as the last half of this year.”
Added board CEO Janice Myers in a statement: “Even if interest rates were to drop and the economy stabilized, housing will remain out of reach for many Ottawa residents.”
MORE: July 2023 resale market suggests better days ahead
Prices down, listings up
Resale prices continue to remain below those last year. Non-condos sold for an average of $709,739 in August, down 5.6 per cent from the same month last year. Condos sold for an average of $425,968, which is 1.4 per cent lower than in 2022. In both cases, prices were up marginally compared to July of this year.
With just four months left to report in 2023, year-to-date prices averaged $732,220 for non-condos and $432,571 for condos. Those prices were down eight and 5.5 per cent respectively for the same period last year.
A new report from Re/Max forecasts a continuing decline in Ottawa resale prices through the balance of the year because of rising interest rates and other factors. The firm predicts the average sale price of an Ottawa home will drop to about $712,697 by the end of the year.
At the same time that Ottawa resale prices continued to be sluggish, new listings hit 2,228 in August, up seven per cent from last year and above the five-year average of 2,177.
Days on market continued to fluctuate slightly as they have for the past few months. In August, non-condo properties sat on the market for an average of 31 days and condos for 29 days.
In her statement, Myers pointed out that the board’s latest figures coincide with the City of Ottawa’s allocation of $110 million for affordable housing but that more government support is needed if homes, including rental accommodation, are to become affordable.
“Collaboration among all levels of government and stakeholders is vital to improving affordability for homeowners and tenants alike. And we need to expand provincial regulations, allowing four or more residential dwelling units on serviced lots, to promote higher-density housing.”
