Ottawa home sales gaining momentum this summer: Report

The number of homes sold in Ottawa was up 13.6 per cent in July compared to last year, according to the Ottawa Real Estate Board (OREB).

A total of 1,241 homes were sold in the capital last month, says the OREB, noting that this increase could be an indication that buyers are slowly gaining confidence, especially after the latest Bank of Canada's (BofC) interest rate cut. Currently, the central bank’s interest rate is 4.5 per cent.

"Buyer confidence is slowly but surely catching up while sellers continue to add a steady stream of new listings. Of course, the extent to which that translates into transactions depends on the type of properties and price points available in our communities as supply and affordability issues persist," said OREB president Curtis Fillier.

“Two consecutive interest rate cuts by the Bank of Canada, coupled with the federal government’s introduction of 30-year amortization periods on mortgages for first-time homebuyers purchasing newly built homes, will help some buyers."

Lower interest rates and longer amortization periods increase demand, while adding pressure on housing supply, Fillies says, noting that cities across the country have to take action when it comes to increasing supply.

There were 2,231 new listings in Ottawa in July, up 17.1 per cent from the year before, says the OREB.

At the end of July, there were 3,480 homes listed for sale, which is a 37 per cent increase from July 2023. On average, it took 2.8 months for a listed home to be sold in July of this year -- up from 2.3 per cent in the same month last year.

Here are OREB's average prices for homes in the capital:

• The benchmark price for single-family homes was $734,700 - down 0.1 per cent on a year-over-year basis in July.

• The benchmark price for a townhouse/row unit was $506,100 -- up 3.4 per cent from last year.

• The benchmark apartment price was $422,800 -- down 0.9 per cent from year-ago levels.

• The average price of homes sold in July 2024 was $679,610 – down 2.1 per cent from July 2023. The more comprehensive year-to-date average price was $681,082, increasing by one per cent from July 2023.