Ottawa's housing market is seeing a surge of new listings and a lower share of them selling, according to Ottawa Real Estate Board (OREB) president Tami Eades. In an interview with the Ottawa Business Journal, she walked through the numbers shaping the market and what they mean for buyers, sellers and homeowners facing a renewal.
More listings, a lower sales ratio
The headline figure is supply. Eades said new listings in Ottawa jumped 38 per cent, bringing the total to just under 3,000 listings.
The other big piece, in her words, is the sales-to-new-listings ratio, which fell to 34.5 per cent. In plain terms, a smaller share of the homes coming onto the market are finding buyers.
Condos are feeling it most
The condo segment looks softer than the rest of the market. Eades said condo sales were down almost 25 per cent from last September. Condo inventory rose to 7.3 months, and the benchmark price fell 6.1 per cent.
Those figures matter to anyone weighing a downtown or suburban condo purchase, or thinking of selling one. More months of inventory means more choice for buyers and more competition among sellers.
New homes and the suburban west end
Not every part of the market is cooling the same way. Eades said 464 new home sales were reported in August, which is 55 per cent higher than a year earlier.
She also described where most of OREB's activity sits. By her estimate, almost 75 per cent of OREB sales are single-family homes in the suburbs, particularly the west end. That concentration helps explain why a weak condo segment does not drag down the whole market.
Mortgage renewals add pressure
Eades also pointed to household finances. The Bank of Canada held its policy rate at 2.25 per cent in September. Even so, she cited a CMHC finding that 35 per cent of surveyed borrowers who renewed their mortgage are experiencing increased financial pressures.
She said payments for those renewing borrowers are rising by an average of about $375 a month, which she called significant. For a household already stretched by other costs, that is a real change to the monthly budget, and it is one reason some owners may be weighing whether to stay put or sell.
Musical chairs
Eades compared the current market to musical chairs, where you have a set number of people in a room.
Earlier ottown coverage
OREB has been in the spotlight on the commercial side too. Earlier this summer, ottown looked at why local business owners are leaning on board realtors for big property decisions in ottown's earlier report.
What to watch
The interview does not lay out a forecast, and no timeline has been given for when listings, condo inventory or sales ratios might shift.
Sources: Ottawa Business Journal
