Ottawa’s Real Estate Market: A Comprehensive Analysis of August 2023 Sales and the Ongoing Housing Affordability Challenge
In August 2023, the Ottawa Real Estate Board (OREB) reported a marginal increase of 6% in residential property sales compared to the same month last year, with a total of 1,196 properties sold. This includes a 7% increase in freehold properties and a 2% rise in condominium properties. However, these numbers are still below the five-year average for August sales, which stands at 1,525 units.
OREB President, Ken Dekker, noted that while demand remains high due to increased immigration and a large Canadian population entering the market, there is a shortage of suitable, affordable housing. Factors such as high borrowing costs and economic uncertainty are affecting both buyers and sellers, leading to potential market fluctuations.
OREB CEO, Janice Myers, drew attention to the City of Ottawa’s recent allocation of $110 million towards affordable housing. Despite this, she cautioned that housing may remain inaccessible for many Ottawa residents unless there is collaboration between all levels of government and stakeholders. She also stressed the need for expanding provincial regulations to allow for higher-density housing.
By the Numbers
Average Prices*:
- The average sale price for a freehold-class property in August was $709,739, an increase of 0.5% from 2022, and a 5.6% decrease over July 2023 prices.
- The average sale price for a condominium-class property was $425,968 an increase of 1% from a year ago, although 1.4% lower than July 2023 prices.
- With year-to-date average sale prices at $732,220 for freeholds and $432,571 for condos, these values represent an 8% decrease over 2022 for freehold-class properties and a 5.5% decrease for condominium-class properties.
Inventory & New Listings:
- August’s new listings (2,228) increased 7% over August 2022 (2,090) and were on par with last month (2,234). The 5-year average for new listings in August is 2,177.
- Months of Inventory for the freehold-class properties has increased to 3 months from 2.9 months in August 2022 and 2.7 months in July 2023.
- Months of Inventory for condominium-class properties remains on par with August 2022 at 2.2 months, a slight decrease from 2.3 months in July 2023.
- Days on market (DOM) for freeholds have increased to 31 days from 25 days in August 2022 and 26 days in July 2023.
- Days on market (DOM) for condos have increased to 29 days from 28 days in August 2022 and 28 days in July 2023.
Source: OREB