Ottawa Housing Price History (2022-2023)

In 2022, Ottawa saw its average selling price rise 7% to $769,823 and this year, that figure is projected to increase slightly higher. How did prices in the Nation’s Capital get to where they are today? In this post, we’ll take a month by month look back at Ottawa’s housing price history over the past year to help you understand the market.

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Housing prices in Ottawa have been on a wild ride over the past 12 months. Rising inflation, COVID lockdowns lifting, supply shortages, pent-up demand, surging interest rates and increased levels of immigration are just some of the factors that were at play over the past year.

January 2022

Average sales price

Residential: $771,739 | Condos: $447,943

Coming out of the holiday season, many buyers felt re-energized to resume their home searches but limited supply made this process extremely tricky and frustrating.

  • COVID measures were starting to lift
  • There was little to no supply
  • Sales were happening extremely quickly
  • Bidding wars were taking place
  • Interest rate remained at a historic low (0.25%)

February 2022

Average sales price

Residential: $837,517 | Condos: $466,682

In February, the average sales price rose sharply as much of what was happening in January intensified even further.

  • The gap between list and selling prices widened
  • Sellers anticipated as many as 10-20 offers
  • Pricing set for more intense bidding wars
  • Conditions in offers were basically non-existent

March 2022

Average sales price

Residential: $853,615 | Condos: $479,405

In March, the Bank of Canada took its first action on interest rates since the beginning of the COVID-19 pandemic. The historically low 0.25% rate was increased by 25 basis points to 0.50%. It was the first policy change since October 2018 and was only the beginning of interest rate hikes to come.

  • Average sales price for a residential home reached its peak
  • Inflation was on the rise
  • Interest rates were increased to 0.50%
  • More inventory was starting to appear

April 2022

In April, many buyers began to get fatigued following several unsuccessful attempts to purchase a home. As astronomical housing prices and supply shortages continued to dominate media headlines, talk about the need for more aggressive and sustained interest rate hikes began to surface among Canada’s leading economists.

Average sales price

Residential: $829,318 | Condos: $473,702

  • Frustration among homebuyers was growing
  • Strong sellers market, <1 month supply of inventory
  • ON government announces new rules for foreign homebuyers
  • Bank of Canada hikes interest rates again (0.50% to 1%)

May 2022

In May, the Ottawa housing market began to show signs that a major shift was starting to occur. It was also the beginning of a new reality for home sellers who quickly came to realize that an influx of new supply would cause the value of their home to begin dropping.

Average sales price

Residential: $802,393 | Condos: $472,920

  • Sellers begin realizing that they need to lower prices
  • 22% decrease in sales in May year over year
  • Fewer bidding wars, more conditional sales start happening
  • Residential inventory increases, up 18% and above the 5 year average

June 2022

In June, it was becoming clear that homebuyers were no longer feeling the urgency that they once did to find and purchase a home. The market was slowing and the Ottawa Real Estate Board acknowledged a return to a more “normal” housing market. Additional supply continued to become available.

Average sales price

Residential: $772,861 | Condos: $438,977

  • Interest rates continue to rise with a 50 basis point increase
  • Selling prices began to move more in line with list prices
  • Many conditional sales now happening
  • Return to a more “normal” market

July 2022

In July, sellers were starting to see the need for gradual pricing adjustments as time on market was increasing. Additionally, the Bank of Canada announced the largest single rate increase since 1998, with a full 1.0% hike.

Average sales price

Residential: $716,354 | Condos: $425,694

  • Purchasing power for buyers continued to drop
  • From March to July, average sales price dropped more than $137K over a 5 month span
  • Sellers were receiving few offers
  • Sales down 35% year over year

August 2022

In August, the usual summer slowdown was now being compounded by increased cost of living with rampant inflation and sustained rates. Talk and anticipation of another significant rate increase began for the fall and buyer uncertainty resulted in many folks choosing to take a wait and see approach.

Average sales price

Residential: $707,712 | Condos: $421,966

  • Homes started to sell below the list price
  • Buyers were starting to see significant room for negotiation
  • The average sales price was beginning to stabilize

September 2022

In September, with the summer holiday season come and gone many sellers were eager to get their home on the market. This brought a huge influx of new supply for buyers that was above the 5 year average for the month but several other factors were causing significant hesitation.

Average sales price

Residential: $706,658 | Condos: $450,987

  • Rates were hiked from 2.5 to 3.25%
  • Sales were down 33% year over year, despite new inventory
  • Average sales price barely moved from the previous month
  • Mortgage stress test was now significantly impacting buyers

October 2022

In October, buyer hesitancy reached a fever pitch and seller frustration grew. The average property was now sitting on the market for more than 40 consecutive days at a time, resulting in sellers accepting much lower prices than they had hoped for. Further action on interest rates set the stage for what would be a tremendously slow holiday season.

Average sales price

Residential: $677,873 | Condos: $445,691

  • Sale to list price ratio fell to lowest rate in 4 years
  • Sellers accepting offers 3-4% below original list price
  • 50 basis point rate hike brought interest rate to 3.75%
  • Average sale price reached the $600K’s for first time since 2021

November 2022

In November, the Ottawa real estate board declared that the city had reached a balanced market, citing nearly 4 months of available inventory. The market grinded to a halt with residential sales down over 40%. First time homebuyers were especially impacted by the difficult economic landscape.

Average sales price

Residential: $680,031 | Condos: $415,533

  • Ottawa reaches a ‘balanced’ market after favouring sellers for much of the year
  • Condo sales fell 50% year over year, a big sign that entry level properties were being heavily impacted
  • First time buyers turned to the rental market, resulting in expensive rent and a 27% increase in activity
  • Market predictions for 2023 began to surface

December 2022

In December, the holiday slowdown was now in full effect, coupled with another interest rate hike – a 50 basis point increase that saw the policy rate increase from 3.75% to 4.25%, only this time –  the Bank of Canada suggested that significant interest rate hikes may be soon coming to an end.

Average sales price

Residential: $655,839 | Condos: $434,973

  • December sales were down 30% year over year
  • Inflation remained high
  • The year ended with an average, 7% price increase from 2021
  • Royal LePage projected that Ottawa will see a 2% price gain in 2023

The Ottawa real estate market ended the 2022 year with an average, 7% price gain over 2021. While it’s tough to predict exactly how 2023 will shape out, more stable interest rates should provide some calmness for the market. The Royal LePage market forecast expects that Ottawa will see a 2% average price increase for our market, while several other major cities such as Toronto and Vancouver will see decreases.

Are you thinking about buying or selling in 2023? Get in touch with us today to see how we can help you achieve your real estate goals.

Whether you’re a first time home buyer, a seasoned investor or simply looking for a change of scenery, my number 1 goal is to help my clients throughout their journey.

From start to finish, I’m here to earn your trust throughout each step in the buying or selling process. If you’ve thought about making a move, please visit us online to learn more about how we can help you achieve your goals.