Ottawa Housing Market: Still Hot, but Normalizing

CEO Khai Intela
The Ottawa housing market has remained red hot, despite signs of a temporary cool down, according to people looking to buy a home in the city. The Ottawa Real Estate Board recently released a report...

The Ottawa housing market has remained red hot, despite signs of a temporary cool down, according to people looking to buy a home in the city. The Ottawa Real Estate Board recently released a report stating that June's resale market performed similarly to a typical pre-pandemic June, indicating a sense of balance in the market. Although the prices have remained steady, there has been a decrease in volatility compared to previous months.

Signs of Normalization

The average price of a condo in June was $435,198, marking a 21% increase from the previous year. Similarly, the average sale price for a residential property was $725,970, showing a 26% increase from a year ago. While these prices have not experienced the same rapid growth as earlier in the year, they are still at a high level, signaling a potential leveling off. Ben Rabidoux of Edge Realty Analytics agrees that the market is normalizing but emphasizes that it is still incredibly hot and not affordable for many buyers.

Ottawa Housing Market Image: A snapshot of the Ottawa housing market

Challenges for Buyers

On the buyer's side, navigating the market remains a daunting task. Dan Riendeau, who has been searching for a home in Ottawa for two years, explains the ongoing difficulties. Despite visiting about 60 homes, Riendeau and his wife have only found fewer than 10 that they liked. In instances where they did make an offer, they were consistently outbid, sometimes by more than $140,000. The limited inventory and seller-oriented market make it unlikely for the situation to correct itself anytime soon.

The Stress of Purchasing a Home

The stress of purchasing a home is not limited to buyers. Josh Flynn and his wife Marcela recently bought their second home in Ottawa, and they can attest to the challenges. Their experience was drastically different from when they purchased their first home in 2013. Flynn describes the current market as a strategic game of chess combined with a lottery, with a rapid increase in the value of homes. His advice for new homebuyers is not to rush and not to overextend themselves financially.

Josh and Marcela Flynn Image: Josh and his wife Marcela bought their second home in Ottawa recently after looking to buy since 2019.

The Takeaway

The Ottawa housing market may be normalizing, but it remains highly competitive and challenging for buyers. Prices have steadied, but they are still at elevated levels, making affordability a concern. For those looking to enter the market, taking the time to evaluate options and not rushing into a purchase is essential. The real estate landscape in Ottawa continues to evolve, and it is crucial for both buyers and sellers to navigate this complex market with caution.

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