The real estate market in October 2024 displayed remarkable resilience, with 1,179 units sold, signalling steady demand in the face of The Ottawa real estate market showed encouraging resilience in October 2024, with 1,179 homes sold through the MLS® System, marking an increase from the 1,047 units sold in September. While home sales were 3.9% below the five-year average and 0.9% below the 10-year average for October, this year-to-date increase of 9.4% compared to 2023 underscores the ongoing momentum. Consumer confidence continues to strengthen, buoyed by a recent Bank of Canada interest rate cut that provided some relief for potential buyers. Despite challenges in the broader economy, Ottawa’s market has seen sustained activity throughout the year, deviating from the usual seasonal spikes and lulls.
As OREB President Curtis Fillier states, “We’re seeing positive movement in Ottawa’s market with sales activity up. This is especially interesting because there has been sustained activity throughout the year instead of the typical seasonal spikes and lulls.”
Market Price Insights:
The MLS® Home Price Index (HPI), which provides a more accurate reflection of price trends than average prices, saw the overall benchmark increase to $639,500 in October 2024—up 0.4% from the same month last year.
- Single-family homes saw a 0.7% increase year-over-year, with a benchmark price of $724,500.
- Townhouses also saw healthy growth, rising 1.6%, with a benchmark price of $506,900.
- Apartments, however, experienced a 3.4% decrease, with the benchmark price sitting at $407,500.
The average sale price for homes in October was $668,690, reflecting a 1.2% increase year-over-year, while the year-to-date average price rose 0.9% to $678,081.
- These price trends reveal a market that remains stable and moderately appreciating, even amid supply challenges.
- Average price staying consistent
- 40% increase in sales for October 2024 vs. October 2023
- 14% increase in sales from September 2024
- 55% of sales were single family homes
- 32% townhomes
- 13% condos
Inventory and New Listings:
There was an uptick in inventory, with active residential listings reaching 3,354 units, an 8.9% increase from October 2023. New listings were also on the rise, up by 10.4%, with 2,089 new residential listings in October 2024. Compared to the five-year average, new listings were 6.7% higher, while active listings were 40.6% above the five-year average.
However, the market continues to face tight inventory, with months of inventory tightening to 2.8 months by the end of October, down from 3.8 months in October 2023. A low months-of-inventory figure indicates that homes are selling quickly, which could indicate a shift towards a
seller’s market.
Supply Challenges:
Despite these positive trends, the ongoing supply challenges continue to affect the market. Experts agree that inventory levels remain low, which contributes to the ongoing affordability and accessibility issues. As Fillier notes, “The challenge remains supply. Ottawa’s inventory leans tight and can swing quickly from balanced territory to a seller’s market, which can compound affordability and accessibility challenges.”
To tackle these issues, OREB recently joined the Canadian Real Estate Association on Parliament Hill to advocate for solutions to the housing supply crisis. Innovative policies, such as investing in offsite construction technologies (e.g., prefabricated homes) and extending tax relief for non-profit-built affordable ownership housing, were presented as potential ways to ease the supply crunch.
Looking Ahead:
With a steadily growing consumer confidence and signs of interest rates stabilizing, Ottawa’s real estate market is poised to continue its positive trajectory into the final months of 2024. However, the focus remains on addressing the supply shortage, which will be crucial to maintaining a healthy market in the long term.
As we head into 2025, the conversation will undoubtedly continue to center on the need for innovative housing solutions and policies to create more affordable inventory, ensuring the market remains accessible to both buyers and renters alike.
Stay tuned for more updates on the Ottawa real estate market, and feel free to reach out for expert insights on buying or selling in this dynamic landscape!
