Ottawa condominium prices rose marginally in the second quarter of 2024, according to a new Royal LePage report.

The median price of a condo in the nation’s capital inched up 1% year-over-year to $404,300.. Meanwhile, the median price of a single-family detached home increased 2.3% to $896,200.

The aggregate price of an Ottawa home climbed 2.1% to $777,400.

Ottawa was caught in a national trend as prospective purchasers failed to rush into the market as expected following a key Bank of Canada interest-rate policy change.

“Many would-be homebuyers continue to sit on the sidelines, an indication that the recent 25-basis point rate cut by the Bank of Canada has not convinced many purchasers to return to the market,” said John Rogan, broker of record at Royal LePage Performance Realty. “Meanwhile, the expectation of a rate drop and a subsequent upswing in market activity, prompted many sellers to list their homes throughout the spring.”

In early June, the BoC reduced its overnight lending rate to 4.75% from 5% after a series of rapid rate cuts and holds. The monetary tightening policy had dated back to 2022.

“While demand has slowed, it is likely to pick up again in the fall, especially if we see further rate cuts. However, the summer months will be relatively quiet, as is typical for this time of year,” said Rogan.

Few sellers have listed their properties under the duress of an unaffordable mortgage renewal. He indicated that the bid-ask gap remains wide as buyers proceed with caution and most sellers hold out for their preferred price.

“Until we see a series of cuts to the overnight lending rate, I expect buyer hesitation will continue,” said Rogan.

Royal LePage is forecasting that the aggregate price of an Ottawa home will rise 4.5% year-over-year in the fourth quarter of 2024.

Photo: Condosottawa.com