Luxury home sales cooled in the first two months of the year in the city of Ottawa as affordability took a backseat to inventory, according to a new report.
Ottawa saw a seven per cent decrease in home sales over $1.2 million in January and February, the only Canadian region to see a decline in year-over-year luxury home sales.
“Fewer homes are listed for sale at the top end of the market this year, which has hampered sales activity to some extent,” the RE/MAX report on luxury home sales reported.
“Less than 400 properties are currently available over $1.2 million, 30 per cent of which are priced over $2 million.”
RE/MAX says just 48 properties priced over $1.2 million were sold in January and February.
The most expensive home sold in Ottawa so far in 2024 was a home on Old Sunset Boulevard, which sold for $5 million, according to the real estate website Redfin.
“Heated home-buying activity at lower price points, characterized by strong demand and multiple offers, is expected to spill over into Ottawa’s luxury market in the second quarter of the year,” RE/MAX said.
“While a bounce-back is anticipated in the top end, fuelled by lower lending rates and lower housing values, concerns in the civil service sector over the possibility of a federal election could serve to dampen buyer enthusiasm in the short term.”
The report from RE/MAX says there has been an increase in luxury condominium sales in Ottawa this year, with 12 condos sold for over $800,000 in January and February.
“Condominiums continue to be a popular choice amongst young professionals and downsizing empty nesters and retirees who want to be in the city’s core,” RE/MAX said.
“An ample supply of condominium apartments is available, with 39 properties currently listed for sale.”
Montreal saw a 55 per cent increase in year-over-year luxury home sales in January and February, while Saskatoon’s luxury home market reported a 57 per cent increase. The report shows Toronto (167 homes) and Vancouver (155 homes) had the greatest number of luxury homes sold during the first two months of the year.