Ottawa housing market sees slight rise in average home prices year-over-year

Although the housing market has slowed over the past few months, the average price of a home in the capital increased compared to this time last year.

According to the Royal LePage House Price Survey released on Oct. 13, the aggregate price of a home in Ottawa increased 2.7 per cent year-over-year to $744,500 in the third quarter of 2022. However, on a quarterly basis, the aggregate price of a home in the city decreased 7.0 per cent.

“Despite softening home prices over the summer, Ottawa’s fall real estate market is trending towards more stable conditions as new inventory becomes available,” said Jason Ralph, broker of record, Royal LePage Team Realty. “We continue to see strong buyer demand in the region – even if lower than last year’s historical highs – and not enough supply to fully shift to a balanced market.”

Looking at different types of housing, the median price of a single-family detached home increased by 0.2 per cent year-over-year to $858,900, while the median price of a condominium decreased 5.4 per cent to $392,300 during the same period. 

According to Ralph, interest rate hikes and inflation have eased competition. However, properties in the most desirable neighbourhoods, if priced properly, can still produce multiple-offer scenarios.

“Despite rising interest rates, many buyers are still keen to make a purchase this year,” added Ralph. “Without a significant boost in inventory, it is unlikely we will see a full return to a balanced market.”

Ralph expects healthy market activity in Ottawa for the remainder of the year and anticipates a shift back to pre-pandemic seasonal trends in 2023, as low supply continues to be a challenge.