Ottawa home sales fell last month compared with the previous year as buyers continued to take a wait-and-see approach amid rising mortgage rates.
A total of 724 housing units were sold in November, the Ottawa Real Estate Board said this week. That’s a 1.6 per cent drop from the same month in 2022 and 31.8 per cent below the five-year average for November.
“Sales are performing as expected with the arrival of colder months, and an uptick in new and active listings is bringing more choice back into the market,” OREB president Ken Dekker said in a statement.
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“While more choice may mean the pace of buying and selling has slowed, that doesn’t mean people looking to enter or upgrade in the market should sit back.”
A total of 11,421 homes changed hands in Ottawa through the first 11 months of 2023, down 11.7 per cent from the same period in 2022.
Rising mortgage rates have made it tougher for some potential buyers to qualify for mortgages, putting a damper on sales. The Bank of Canada held its key interest rate steady at five per cent Wednesday, the third month in a row the central bank has left the rate unchanged as consumption and business investment remain relatively flat this year.
The average home price in Ottawa was $633,138 last month, down 0.8 per cent from a year earlier. Year-to-date, the average price is down 5.7 per cent to $669,536.
Meanwhile, the city’s housing inventory continues to grow.
There were 1,428 new listings in November, up 2.7 per cent from the previous year and 8.4 per cent above the five-year average.
Active listings increased 15.8 per cent year-over-year to 2,752, their highest level in more than five years.
