Ottawa Housing Market Updates: November 2024
The Ottawa housing market showed continued stability in November 2024, marking another step forward from the slowdown experienced in 2023. While the number of homes sold decreased slightly from October, with 1,059 units sold compared to 1,179, the year-to-date sales are up by 11.8% compared to the same period last year. This indicates a slow but steady recovery as buyers and sellers navigate shifting market conditions and upcoming regulatory changes.
Home Prices Hold Steady
- The overall MLS® Home Price Index benchmark price rose to $636,700, a 1.5% increase year-over-year.
- Single-family homes saw a 2.1% price increase, reaching $722,400, reflecting sustained demand for detached properties.
- Townhomes remained relatively stable, with a modest 0.3% increase to $491,500.
- Apartments experienced a price dip of 3.7%, falling to $406,200, which may provide opportunities for first-time buyers or investors seeking affordability.
The average home price in November was $667,098—up 4.6% from November 2023—while the year-to-date average price sits at $679,797, reflecting a 1.2% annual increase. However, it’s important to note that price trends vary across neighborhoods, so specific property values may differ.
Inventory and Listings: A Mixed Picture
New residential listings totaled 1,352 in November, marking a 7.3% decrease compared to last year. This decline reflects cautious seller activity as many homeowners wait for a potentially more active spring market. However, active residential listings rose significantly, with 4,036 properties on the market—an increase of 38.2% year-over-year.
- Active listings are now 72.8% above the five-year average and 44.3% above the 10-year average, providing buyers with a wider selection of properties.
- Months of inventory (MOI), which measures the time it would take to sell all current listings at the current sales pace, stood at 3.8—down slightly from 4.0 in November 2023.
This balance of increased inventory and cautious seller activity suggests opportunities for buyers who are ready to act, especially with stable prices and interest rates starting to fall.
What’s Influencing the Market?
Buyers are keeping a close eye on two key factors: the Bank of Canada’s recent interest rate cuts and new mortgage rule changes, including extended amortization periods and increased default insurance caps. These changes, coming into effect in December, may expand purchasing power for some buyers.
Sellers, on the other hand, are exercising patience. Many are waiting for the more competitive spring market to list their homes, particularly as snow begins to limit curb appeal and outdoor selling features.
Looking Ahead
While activity typically slows during the holiday season, open houses are still attracting interest, and prices are holding steady. Ottawa’s housing market appears poised for a more active spring, especially as buyers grow more confident with easing interest rates and potential affordability boosts from new mortgage rules.
Bank of Canada Cuts Interest Rates Again
The Bank of Canada announced its fifth consecutive rate cut, reducing the overnight lending rate by 50 basis points to 3.25%. This decision reflects concerns about the slowing Canadian economy, weak GDP growth, and a rising unemployment rate of 6.8%.
Key takeaways:
- Lower rates aim to stimulate economic activity and narrow the gap between buyers and sellers in the real estate market.
- While inflation ticked up to 2% in October, it remains within the Bank’s target range.
- The rate cuts are expected to continue into 2025, which could further boost buyer confidence and market activity.
