The average selling price of a house in Ottawa in September 2022 was $644,161, a 15% decrease from the market’s peak in March 2022, when it was $757,230. When compared to the average selling price in September 2021 of $639,631, this is a 0.7% increase in price. When comparing the average selling price in September 2022 to the average selling price in August 2022, which was $635,585, the average selling price in September 2022 was 1.3% higher. In contrast, monthly declines of 6.5% and 1.6% were seen in July and August of 2022, respectively. The number of home sales this year was lower than the previous year. When compared to September 2021’s total of 1,080 sales, the number of property transactions fell by 33% in September 2022. Furthermore, year-to-date sales of 12,882 units are 21% lower than year-to-date sales of 16,307 units.
The average price of a single-family residence sold in the city of Ottawa was $706,658. It has climbed by 0.5% when compared to the price in September 2021, but has declined by 0.1% when compared to the price in August 2022, which was $707,712. The number of single-family dwellings sold in September 2022 was 816, a 4% fall from the 850 sold in August 2022 and a 34% decrease from the number of sales in September 2021. In August 2022, the average unit cost $450,987, marking a 7% increase over the previous month’s price of $421,967. The current price represents a 6% rise over the previous year’s pricing. 264 units were relocated during the month of September 2022. When compared to the 287 condos sold in August, this is an 8% decrease, and a 27% decrease when compared to September 2021.
Since the end of March, when there was barely a half-worth month’s worth of inventory on the market, there has already been 2.7 months of inventory for condominiums and 3.1 months for freehold homes. This is a significant gain over the prior scenario, when barely half a month’s worth of supplies were available. Despite a 15% increase in average prices over the previous two years, property prices in Ottawa remain far lower than those in Vancouver, Toronto, and even Hamilton. Because the great majority of houses in Ottawa are priced much below $1 million, they are still eligible for a 5% to 10% down payment with CMHC insurance. This allows more purchasers to compete for the available inventory of properties. The Ottawa property market, on the other hand, is somewhat more expensive than similar areas such as Montreal and Calgary. In comparison to areas like Edmonton and Winnipeg, the cost of real estate in Ottawa is much greater.
Even if Canadian inflation fell to 7.0% in August 2022 from 8.1% in June, it would still be much higher than the planned inflation rate of 2%. This objective was formed as part of a 1991 agreement between the Bank of Canada (BoC) and the Ministry of Finance. Since March, the Bank of Canada has steadily increased its policy rate in response to rising inflation, with the most recent increase being in September. The most recent boost was the most recent boost. 3.25 percent is the current benchmark interest rate.The rate hikes are expected to roll over into the following year as a kind of quantitative tightening, and this is the case.
The Bank of Canada’s interest rate rises have already resulted in a rise in prime interest rates and, as a result, an increase in variable mortgage rates. To determine the interest rate on a fixed-rate mortgage, first multiply the return on government bonds by a risk premium. This rate has risen in the past year due to inflation and, more recently, quantitative tightening, both of which have contributed to the increase. The cost of housing has become the biggest problem for the housing market, and rising mortgage interest rates have made this problem worse.