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.

Ottawa freehold prices Jan 2021 - Jun 2022  Ottawa condo prices Jan 2021 - Jun 2022
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.

5-year fixed mortgage rates in Canada from January 2020

The number of sales is also dropping, and is also likely connected to the interest rate increases:
   

And Days-On-Market (time to sell) is increasing as well, although home sales usually do slow during the summer.
   

 

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