Housing market decline continues as Ottawa home sales drop 42 per cent from one year ago

Home sales in Ottawa declined for an ninth straight month according to recent data from the Ottawa Real Estate Board (OREB). 

OREB said in a release that home sales in Ottawa dropped 42 per cent in November of 2022, which serves as the biggest drop of the year. 

Eight hundred and forty six residential properties were sold last month, compared to October of 2021, where 1,671 residential properties sold. 

November’s sales included 658 in the residential-property class, down 39 per cent from a year ago, and 188 in the condominium-property category, a decrease of 50 per cent from November 2021. The five-year average for total unit sales in November is 1,270.

“November’s sales were expectedly low given the typical slowdown this time of year but they also reflect today’s economic conditions,” said Penny Torontow, OREB's president. “This is not isolated to our local market. Globally, we’re still adjusting to the post-pandemic world and that affects demand, pricing, interest rates, cost of living, supply chain disruptions and more. As a result, those who can, are waiting and watching.”

The average sale price for a condominium-class property in November was $415,533, a decrease of four per cent from 2021 while the average sale price for a residential-class property was $680,031, down five per cent from a year ago.

With year-to-date average sale prices at $774,422 for residential units and $454,436 for condominiums, these values represent an eight per cent increase over 2021 for both property classes.

“What’s concerning about the current market is the impact on first-time homebuyers,” said Torontow. “The marked decrease in condo sales, for example, signals that even entry-level properties are being affected. Fluctuating markets, paired with the stress test, are keeping first-time buyers on the sidelines in a tight rental market—with MLS® rentals increasing 27 percent this year over last.”