Ottawa home buyers continue to feel increasing economic pressures, according to Royal LePage.
The aggregate price of a home in Ottawa has increased by 2.1 per cent to $477,400 in the second quarter of 2024.
Increase in prices varies by housing type in the second quarter of 2024. The price of a single-family detached home increased by 2.3 per cent to $896,200. A condo increased by only 1 per cent to $404,300.
Prices are increasing more in Ottawa than in Toronto.
The aggregate price of a home in the GTA increased by only 0.9 per cent to $1,190,600 in the second quarter of 2024.
Ottawa housing prices are less than those of Montreal, however. The average price of a home in the greater Montreal region has increased by 4.8 per cent to $599,400 in the same time period.
Nationally, the aggregate price of a home in Canada has increased by 1.9 per cent to $824,300. This is above pre-pandemic levels. In recent years, home prices have declined and increased varying by region.
While home prices are rising, the number of homes bought and sold is lagging behind.
John Rogan, broker of record for Royal LePage, said in a press release that Ottawa’s job market and high number of dual-income households is helping homeowners from being forced to sell.
“Thankfully, we have not seen many sellers list their homes under the duress of an unaffordable mortgage renewal,” said Rogan. “Buyers are proceeding with caution and sellers are holding out for the right offer. Many buyers are trying to navigate higher interest rates and the elevated costs of carrying a mortgage. Until we see a series of cuts to the overnight lending rate, I expect buyer hesitation will continue.”
Royal LePage predicts that compared to the fourth quarter of 2023, the aggregate price of a home in Ottawa will increase 4.5 per cent in the final quarter of this year.
They forecast that the price of a home in Canada will increase by 9 per cent in the same period.
