Home prices increased an average of 1.6 per cent in Ottawa over the summer, as buyer demand remained weak and sellers “stick with their listing strategy,” according to a new report.
However, the Royal LePage House Price Survey is forecasting the aggregate price of a new home increases 4.5 per cent in the final three months of the year following the cut in interest rates.
The survey shows the aggregate price of a home in Ottawa was $775,100 in the third quarter of 2024, up 1.6 per cent from the July to September period in 2023. Home prices were down 0.3 per cent in the third quarter compared to the second quarter.
Royal LePage says the median price of a single-family detached home increased 1.8 per cent in the third quarter to $894,400, while the median price of a condominium increased 1 per cent to $400,300.
“At the end of the summer, the Ottawa real estate market had approximately three months worth of inventory, teetering between a balanced and a seller’s market,” Jason Ralph, broker of record and president of Royal LePage Team Reality, said in a statement.
“Home prices have continued to hold steady in recent months as sellers stick with their listing strategy; they remain confident that they will secure the price they want, even if they have to wait. Buyers are still hunting for a bargain, and are comfortable taking their time to find the property that best suits their needs.”
Across Canada, the national aggregate home price increased 1.6 per cent to $815,500 in the third quarter compared to the same three month period in 2023. Home prices dropped 1.1 per cent in the summer compared to the spring, “following sluggish activity in most markets through the summer months,” according to Royal LePage.
Royal LePage says despite the three interest rate cuts by the Bank of Canada, “buyer demand nationally remains weak” particularly among first-time homebuyers and small investors.
Ralph noted new mortgage rules, including a 30-year amortization period for purchasers of new construction homes and first-time buyers, are “generating some buzz in the market” in Ottawa, with busier open houses and an increase in showing requests.
“We expect home prices to trend upward slightly throughout the rest of the year as new borrowing rules improve affordability for first-time buyers,” Ralph said.
Royal LePage says the average price of a home in Ottawa will increase 4.5 per cent in the fourth quarter of 2024 to $788,662, up from $754,700 in the fourth quarter of 2023.