A new report stated that the number of homes sold for at least one million dollars has doubled as a share of the housing market in Ottawa.

The mid-year luxury real estate report from Engel & Völkers showed that home sales in Ottawa in the range of 1 - 3.99 million dollars doubled in 2022, representing 18 percent of the market compared to 9 percent in the previous year.

However, the number of those sales dropped by 39 percent last month, as part of the overall cooling of the real estate market in Ottawa to reach more typical conditions.

There were 171 sales recorded in June, down from 269 in May.

Total home sales in Ottawa also fell by 29 percent year-over-year in June.

Engel & Völkers’ report said: "After two years of steady growth in record prices and shrinking inventory, the Ottawa market is returning to a more balanced pace."

Adding, "The market will continue to balance and return to seasonal sales patterns for the remainder of 2022."

Since 2020, Ottawa has seen a 53 percent increase in the average home price.

The report also highlights the number of Ottawa properties pushed to the 1-3.99 million Canadian dollar price point during the market’s record growth.

In 2020, homes priced over one million dollars represented only four percent of the market. This number doubled to nine percent in 2021 and doubled again to 18 percent this year.

The year began with continued growth but stabilized in March, with rising interest rates and increasing global uncertainty due to the war in Ukraine.

This was followed by a decline in the 1-3.99 million dollar price range, where this category of homes dropped 16 percent month-over-month in April, then remained unchanged in May, followed by a 39 percent drop in June.

The report says: "Homes now remain on the market longer than they did in 2020 and 2021, and the increases in interest rates have caused homebuyers to rethink their budgets."

The report explains, "However, even if prices remain steady or decline, many homeowners have seen significant increases in equity in their properties."

The average residential sale price in the 1-3.99 million dollar range has not changed significantly.

It was 1.32 million dollars in January and 1.33 million dollars in June.

The report states: "This ongoing change in price indicates a return to normal market conditions."