Ottawa Real Estate: Ottawa home prices expected to rise 4.5 percent by end of 2024

Ottawa Real Estate: Ottawa home prices expected to rise 4.5 percent by end of 2024

According to Royal LePage, the Ottawa real estate market is expected to remain “relatively quiet” through the summer after the Bank of Canada’s recent rate cut prevented potential homebuyers from flocking back into the market.

The Royal LePage housing survey found that the overall price of a home in Ottawa rose 2.1 percent in the spring to $754,700. Average home prices are expected to rise 4.5 percent in Ottawa to $788,622 by the end of the year.

Royal LePage says demand in Ottawa remains low heading into summer.

“Many potential homebuyers are remaining on the sidelines, an indication that the Bank of Canada’s recent 25 basis point rate cut has not convinced many buyers to return to the market,” John Rogan, registered broker at Royal LePage Performance Realty, said in a statement.

“Meanwhile, the expectation of a rate cut and subsequent rebound in market activity led many sellers to list their homes in the spring. While demand has slowed, it is likely to pick up again in the fall, especially if we see further rate cuts. However, the summer months will be relatively quiet, as is typical for this time of year.”

Data from the Ottawa Real Estate Board shows 1,439 homes were sold in June, up 0.1 per cent from June 2023. The statistics show home sales are 7.5 per cent below the five-year average.

In the first six months of the year, a total of 7,109 homes were sold in Ottawa.

Rogan expects the wait-and-see attitude to continue, adding that Ottawa’s healthy job market and “large number of dual-income households largely ensure that homeowners” are not forced to sell their homes.

“Buyers are proceeding cautiously and sellers are waiting for the right offer,” Rogan said. “A lot of buyers are trying to navigate the higher interest rates and the increased costs of having a mortgage. Until we see a series of overnight lending rate cuts, I expect buyers will continue to hold back.”

Across Canada, the total price of a home rose 1.9 percent year-over-year to $824,300.

“The Canadian housing market is struggling to find a consistent rhythm, as the past three months have clearly demonstrated,” said Phil Soper, president and CEO of Royal LePage. “Nationally, home prices rose while the number of properties bought and sold declined, an unusual dynamic. The silver lining: inventory levels in many regions have increased significantly. This is the closest we’ve come to a balanced market in years.”

According to Soper, the Bank of Canada’s rate cut “has not materially improved affordability.”

Royal LePage predicts the total price of a home in Canada will rise nine percent in the fourth quarter to $860,555.