Home sales in Ottawa fell 19 percent in May as higher interest rates, the cost of living and a powerful storm that hit the capital over the long weekend for Victoria Day hit the real estate market.
The Ottawa Real Estate Board says 1,846 residential properties were sold last month, up from 2,285 in May 2021.
This is the third consecutive month in the real estate market in Ottawa there is a double-digit decline in sales. There was a 12% drop in March and a 21% drop in April.
The board said May’s home resale was weaker during the busiest month of the year.
“Now with this downward trend, which continues in May, traditionally the most effective month for resale, it is clear that the resale market in Ottawa is moving away from the blazing pace of 2021,” said Board President Penny Toronto.
“And if rising interest rates, living costs and inflation are not enough factors to cause a setback, the powerful and deadly storm that brought our city to its knees last month has justifiably affected the market as well.
The average selling price of a home rose eight percent in May from $ 802,393 last year, while apartment prices jumped 11 percent to $ 472,920.
“Average prices, although still higher than 2021, are showing signs of adjusting to the pace of the market, down 2% month-on-month in both property classes,” Toronto said.
“We also saw a 1-3% drop in April. In contrast to January to March, there was a monthly increase ranging from 2% to 12%.
“This may be good news for buyers, including the fact that the months of inventory have increased to 1.2 for residential and 1 month for condominiums. We are still far from a balanced market, but it seems to be moving in the right direction. “
The Ottawa real estate board says 3,120 properties entered the market in May, leading to an 18% increase in available residential properties.
The number of days a home sits on the market also increased in May to 14 days, compared to 11 days in May 2021.
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