Immigration-fuelled population growth and rising interest rates that have driven up the cost of buying a home helped boost Minto Apartment REIT’s bottom line in the second quarter.
Sales worth $1 million or more now account for nearly one in five Ottawa residential transactions – up from less than five per cent just two years ago, Engel & Volkers says.
Members of the Ottawa Real Estate Board sold 1,508 residential properties last month, a drop of nearly 30 per cent from June 2021.
The average residential-class property changed hands for about $802,000 last month, the city's real estate board said, up eight per cent from a year earlier but down more than $25,000 from April.
Realtors and lawyers say they have noticed buyers looking at what options they have to get out of a purchase because conditions have shifted dramatically from the previous highs and frenzied pace.
A total of 1,889 residential properties changed hands in April, the Ottawa Real Estate Board says, a 21 per cent decline from a year earlier and just above the five-year average of 1,849.
Firm is now predicting the aggregate price of a home in Ottawa will jump 13 per cent in the fourth quarter of 2022 compared with a year earlier, up from its earlier forecast of nine per cent.
Ottawa Real Estate Board president Penny Torontow said “unrelenting high demand” for housing is driving up prices despite the bump in supply.
Detached home sales topping the million-dollar mark accounted for 14 per cent of local transactions in January – up substantially from 2020, when they made up just three per cent of all deals.
The average price of a residential-class property jumped 27 per cent to nearly $720,000 last month compared with February 2020.