Ottawa Real Estate Market Update: December 2024
As we close the books on 2024, Ottawa’s real estate market shows promising signs of recovery and growth. Here’s a comprehensive look at the latest trends and statistics to keep you informed.
Sales Activity
In December 2024, the Ottawa Real Estate Board (OREB) reported 613 residential properties sold through the MLS® System, marking a 7.9% increase compared to December 2023. While this uptick is encouraging, sales remained 6.8% below the five-year average and 2.7% below the 10-year average for December. On a year-to-date basis, total home sales reached 13,526 units, an 11.8% rise from the same period in 2023.
Pricing Trends
The MLS® Home Price Index (HPI), which offers a more accurate reflection of price trends than average or median prices, indicated an overall composite benchmark price of $645,800 in December 2024—a 3.8% increase year-over-year. Breaking it down by property type:
- Single-Family Homes: Benchmark price of $729,300, up 3.7% from December 2023.
- Townhouse/Row Units: Benchmark price of $533,200, a significant 11.3% increase year-over-year.
- Apartments: Benchmark price of $404,400, a slight decrease of 2.5% from last year.
The average sale price for all homes in December was $663,781, reflecting a 4.4% increase compared to December 2023. The year-to-date average price stood at $679,067, up 1.3% from the previous year.
Inventory Levels
December saw 603 new residential listings, a 13.6% increase from December 2023, positioning new listings 3.5% above the five-year average but 2.7% below the 10-year average for the month. Active residential listings at month’s end totaled 3,216 units, a substantial 58.7% rise from December 2023, standing 90% above the five-year average and 51.4% above the 10-year average. The months of inventory—a metric indicating how long it would take to sell current listings at the present sales pace—was 5.2 months in December 2024, up from 3.6 months in December 2023.
Market Outlook
OREB President Paul Czan notes that 2024 concluded with the anticipated holiday slowdown. The latter half of the year brought signs of more favorable market conditions, including consecutive interest rate drops, higher insured mortgage limits, and extended amortizations. While it’s early to assess the full impact of these measures, challenges such as affordability and supply persist. Listing activity suggests that sellers anticipate improved conditions could spur more activity from buyers who have been closely monitoring the market but remain hesitant. However, buyers are still limited in their selection of affordable inventory that meets current demands, which stalls movement. While the improving market conditions are encouraging, the supply needs to be there. Upcoming political shifts add a layer of uncertainty, but there is trending optimism for increased market activity in the months ahead.
Conclusion
December 2024’s data reflects a cautiously optimistic trajectory for Ottawa’s real estate market. With rising sales and prices, alongside increased inventory, the market appears to be stabilizing. However, ongoing challenges related to affordability and supply underscore the need for continued attention. As we move into 2025, both buyers and sellers should stay informed and consult with real estate professionals to navigate this evolving landscape effectively.
For personalized advice and the latest market insights, feel free to reach out to our team. We’re here to help you make informed real estate decisions.
