In what’s becoming a routine of lather, rinse and repeat, Ottawa’s September 2022 resale market continued a seven-month trend by dropping well below the same month last year, according to the Ottawa Real Estate Board. Realtors sold just 1,080 properties through the board’s Multiple Listing Service, a 33-per-cent decline from the 1,601 transactions in September 2021.
The five-year average for total unit sales in September is 1,586.
September’s sales included 816 non-condo properties, down 34 per cent from a year ago, and 264 condominiums, a decrease of 27 per cent.
New-home sales have also been declining sharply since the spring after a couple of years of frantic activity.
“September’s lower (resales) performance reflects continued hesitancy among buyers as they watch interest rates rise and consider the speculation surrounding price trends,” said board president Penny Torontow in a statement.
“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.”
Inventory continues to grow
With sales dropping, the number of homes available for sale continues to grow after several years of tight supply.
Almost 2,400 homes were listed last month, a five-per-cent jump from a year ago and a 13-per-cent increase over August 2022.
“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,” said Torontow.
Prices up but moderating
Following firecracker-like price growth during the pandemic, the cost of buying a resale home has been settling down over the past few months.
In September, non-condo properties sold for an average $706,658, increasing just 0.5 per cent from a year ago. Condominiums averaged $450,987, up six per cent compared to last September.
Year-to-date prices have averaged $788,535 for non-condo homes and $457,189 for condominiums. In both cases, that’s nine per cent more than the same period last year.
“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,” said Torontow. She added that prices in every neighbourhood are different.
