Ottawa’s housing market sales declined over past year

The number of residential properties sold in the Capital has dropped by nearly 40 per cent over the last year, that's according to the Ottawa Real Estate Board (OREB).

According to the Board's report, in February of this year, 855 residential properties were sold in the city, compared to the 1,411 sold in February 2022. The report also showed that freehold property class sales came down 42 per cent from one year ago. Condominium property sales, on the other hand, also saw a decrease of 31 per cent from February 2022.

But there are different reasons for the decline in sales.

“We’re going to see declines in transactions and prices when we compare current figures to last February — the height of the pandemic resale market activity,” said Ottawa Real Estate Board’s President Ken Dekker in the release. “On the other hand, with the Bank of Canada holding interest rates steady, prospective buyers have more budget certainty to work with as we head into the spring market.”

Last month, the average sale price for a freehold-class property was over $700,000, which was a 15 per cent decrease from 2022. However, it marks a 5 per cent increase over January 2023. The average sale price for a condominium-class property was $410,927, a 12 per cent drop from a year ago.

“The average price increase for freeholds over January could be an indicator that buyers have normalized to the current interest rates. And perhaps, it’s a glimmer of more activity to come in the months ahead,” said Dekker.  “A decrease in the days on market, paired with fewer new listings entering the market, is good news for sellers,” 

Since the beginning of 2023, the number of people renting properties has gone up by 24 per cent. The OREB said they helped clients rent 995 properties compared to 800 this time last year. 

But the OREB's president has some advice on what buyers and sellers should look out for in Ottawa's housing market. 

“The best advice for sellers and buyers in today’s market is to pay close attention to the comparison and competition insights only a REALTOR® can offer. Ottawa is made up of many micro-markets, and neighbourhood-level data is vital to standing out and closing deals.”