The number of homes sold in Ottawa rose by 13.6 percent in July compared to the previous year, according to the Ottawa Real Estate Board (OREB).

A total of 1,241 homes were sold in the capital last month, according to the Ottawa Real Estate Board, noting that this increase may be an indication that buyers are slowly gaining confidence, especially after the latest interest rate cut by the Bank of Canada (BofC). Currently, the central bank's interest rate stands at 4.5 percent.

OREB chair Curtis Filiatrault said: "Buyer confidence is slowly but steadily improving as sellers continue to add a steady stream of new listings. Of course, how much this translates into transactions depends on the type of properties and price points available in our communities as supply and affordability issues persist."

"The two consecutive interest rate cuts by the Bank of Canada, along with the federal government's offering of 30-year mortgage terms for first-time homebuyers purchasing newly built homes, should help some buyers."

Filiatrault says that lower interest rates and longer amortization periods increase demand, while adding pressure to the supply of housing, noting that cities across the country need to take action when it comes to increasing supply.

There were 2,231 new listings in Ottawa in July, an increase of 17.1 percent from the previous year, according to OREB.

At the end of July, there were 3,480 homes listed for sale, representing a 37 percent increase from July 2023. On average, it took 2.8 months to sell a listed home in July of this year - up from 2.3 months in the same month last year.