It’s a battle between what buyers can afford and the price sellers expect in the local resale housing market, according to one report.
In a market insight report released Monday, Re/Max Hallmark Realty Group said year-over-year home sales in Ottawa dropped 11.2 per cent in April compared to the previous year, with 1,306 residential properties sold.
At the same time, inventory surged 54 per cent with 2,589 listings entering the market, bringing total active listings to 4,878 and creating a favourable market for buyers, especially those looking at condos and single-family homes.
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“Compared to the seller-dominated environment of recent years, we’re now seeing a marketplace that demands strategic pricing and presentation,” said Brandon Reay of Re/Max. “This isn’t a downturn, it’s a return to normal market mechanics.”
The average sale price was up slightly year-over-year to $707,180 and the median sale price to $653,500.
By category, sales were down 16 per cent for single-family homes, the report found, while inventory was up 40 per cent. For condos, sales dropped 27 per cent and inventory went up by about 60 per cent. Townhomes saw flat prices and a slight growth in sales, while inventory nearly doubled.
A growing gap between buyer affordability and seller expectations is driving longer days on market and fewer bidding wars, the report said. The Bank of Canada’s rate cut to 2.75 per cent in March provided some relief, but elevated borrowing costs and rising ownership expenses are keeping many buyers cautious, it added.
“We’re seeing a market where preparation matters more than ever,” said Reay. “Buyers are taking their time, and sellers need to price sharply and present well to stand out.”
The report said further inventory increases are expected as summer listings ramp up.
“While another rate cut could inject new momentum, the market is unlikely to return to the frenetic pace of 2021–2022,” the report said. “Ottawa’s real estate is entering a new chapter; defined not by fear or frenzy, but by balance and opportunity for well-informed buyers and sellers.”
