The Changing Ottawa Real Estate Market – July 2022
The Ottawa Real Estate Market is continuing the return to more normal levels. Mortgage and other lending rates are also returning to more “normal” levels. However, a number of studies say that Ottawa (and indeed, most of Canada) has a severe housing shortage, so the slowdown in sales and the dip in house prices may well level out fairly soon.
Condo prices enjoyed quite a bump from last fall to this spring, but prices in both classes of properties are calming down from the “covid buying frenzy”. It’s interesting to compare the change in prices to the changes in mortgage rates. For simplicity, the chart below [credit to RateHub.ca] is for 5-year fixed mortgages, but you can see that rising mortgage rates appear to have a high correlation with purchases. Visit RateHub.ca if you’re interested to see the chart for your type of mortgage. Note that mortgage rates vary a lot between properties, types of properties, and individual borrowers.