A Steadier Pace, and More Choice for Buyers
Ottawa's housing market held steady through September. 1,010 homes sold across the city, slightly more than in August and about 6.6% fewer than a year ago. Prices were also steady: the average sale price was $685,640, nearly the same as August and just 1% below last September.
The bigger change was on the supply side. 2,927 new listings came to market in September, 38% more than in August. That is about three times the usual increase for this time of year. With roughly one home selling for every three new listings, buyers now have more to choose from, and more time to decide, than they have had in some years.
What this means if you are selling the family home
Detached homes are holding their value well. The benchmark price for a single-family home was $705,100, almost unchanged from a year ago. There is more competition for buyers' attention, though. Homes that are well prepared and priced carefully from the first day are the ones that sell. Homes that are priced to "test the market" are more likely to sit. Ottawa's suburbs, including Orléans, continue to be the busiest part of the city. They accounted for nearly three-quarters of September sales.
What this means if you are buying your next home
This is where the current market may help right-sizers. Condominium apartments are the softest part of the market. The apartment benchmark price is down about 6% from last year, and there are now more than seven months of supply. For someone selling a detached home and moving to a condo or apartment, the price gap between the two has widened. It may also be easier to negotiate, take your time, and find the right fit.
Looking ahead
Interest rates have been steady. The Bank of Canada has kept its rate at 2.25% for almost a year, and its next decision is October 28. Listings usually slow in October and November. The next two months will show whether September's surge was seasonal or the start of a longer shift.
For families planning a move, my advice is the same in any market: start with a clear plan, and let your timing come from your life, not the headlines. If you would like to talk through what these numbers mean for your home, I am always happy to help.
A word on mortgage rates
The Bank of Canada's rate affects variable mortgages. Fixed mortgage rates follow something else: long-term government bond yields, the interest rate investors earn when they lend to the government for several years. Those yields have been rising in Canada and around the world, and fixed mortgage rates have started to rise with them. If you are planning to buy, it is wise to prepare now. Speak with a mortgage professional about a pre-approval with a rate hold, which can protect a rate for a few months while you search. Ask them to explain the difference between fixed and variable terms for your situation, and set your budget with a little room in case rates rise further.
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