The number of home sales in June fell 29 percent year-over-year, according to the Ottawa Real Estate Board. That includes a 31 percent drop in home sales and a 23 percent decline in condo sales. “After the frenzy of the past two years, we are watching the Ottawa resale market normalize in 2022 and shift to the more traditional seasonal ebb and flow cycle,” OREB president Penny Torontow said in a press release. “While June trading typically slows as many look to their summer holidays, last month’s sales were at a slower pace than we’ve seen in over a decade.” Toronto attributed the decline to rising interest rates and inflation affecting the cost of living. He also suggested other factors include shopper fatigue, a lack of confidence among consumers and uncertainty about back-to-work arrangements. “A long commute with skyrocketing gas prices will definitely affect decisions about where to live,” he said. Despite the drop in sales numbers, home prices in Ottawa continued to rise. The median home price in June was $772,861, a six percent increase from last year. The median condominium price was $438,977, up one percent. Toronto said even as the numbers fluctuate, Ottawa real estate will continue to be stable over the long term compared to other cities. Toronto, for example, saw home prices drop by more than 40 percent last month. “We’re not likely to ever experience the significant drops that other areas might see,” he said, “Prices won’t drop. they are prone to leveling off at the reasonable growth rates we’ve experienced historically.” Housing market inventories are also slowly moving toward a more balanced market. Home inventory is up 38 percent over last year at this time and has been in nearly two months supply. A few months ago, housing supply was about two weeks worth of inventory in Ottawa.
