The Ottawa Real Estate Board (OREB) announced that home prices in the capital rose slightly in May, but overall sales levels declined.

The average price of properties sold in May 2024 reached $690,683, an increase of 0.8 percent from last year.

The average price for single-family homes in Ottawa last month was $736,000, an increase of 1.1 percent compared to May 2023, and condominium prices rose by 2 percent to $425,000.

At the same time, home sales declined by 9.2 percent compared to May 2023, with 1,545 units sold.

However, the number of new listings for homes for sale saw an increase of 26.2 percent compared to May 2023.

The Bank of Canada lowered the interest rate by 25 basis points this week to 4.75 percent from 5 percent, a move that many had anticipated for several months, as the inflation rate in Canada has remained below three percent since January.

However, OREB President Curtis Villier said that the drop in interest rates will not accelerate the building of new homes, criticizing the City of Ottawa for the recent increase in development fees for homes.