Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for September 2024 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what is sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.
Ottawa Real Estate Market Update: A Healthy Outlook Amid a Shifting Market
The Ottawa real estate market continues to demonstrate resilience as we move through a shifting housing landscape. According to the Ottawa Real Estate Board (OREB), a total of 1,047 homes were sold via the MLS® system in September 2024, marking an 11.4% increase from September 2023. While sales remain 17.4% below the five-year average and 15.4% below the 10-year average, the year-to-date sales figure of 10,485 units reflects a 6.4% rise from the same period in 2023.
OREB President Curtis Fillier shared an optimistic outlook, stating, "Ottawa’s fall housing market is healthy, with robust activity and steady prices." Fillier also highlighted the recalibration of buyers’ and sellers’ purchasing power due to potential interest rate cuts, longer amortizations, and increased mortgage insurance price caps.
However, Fillier noted that Ottawa’s real estate market is primarily challenged by chronic supply shortages rather than demand. Recent policy developments aimed at stimulating demand may help, but as Fillier pointed out, "Ottawa's market doesn't typically have demand problems—we're not building enough homes, and we're certainly not building enough of the right homes to address the 'missing middle.'" According to the Canada Mortgage and Housing Corporation (CMHC), population-adjusted construction in Ottawa is at its lowest level in nearly a decade, and the city is behind on its annual housing targets.
Sales Activity and Prices Year-to-Date
The MLS® Home Price Index (HPI), which offers a more accurate reflection of price trends compared to median or average prices, shows that Ottawa’s housing market remains stable:
The overall benchmark price for homes in Ottawa stood at $642,800 in September 2024, marking a modest 0.2% increase from September 2023.
Single-family homes saw their benchmark price rise by 0.5% year-over-year to $729,000.
Townhouses/row units experienced a slight decline, with the benchmark price falling 1.7% to $500,000 compared to last year.
Apartment prices also saw a year-over-year dip, decreasing by 1.3% to $414,200.
The average sale price for homes sold in September 2024 was $685,551, reflecting a 1.4% increase from September 2023. Year-to-date, the average price was $679,082, up by 0.9% compared to the same period in 2023. OREB advises that while the average sale price is useful for identifying long-term trends, it should not be interpreted as a direct indicator of property value changes in specific neighbourhoods.
The total dollar volume of home sales in September 2024 reached $717.7 million, representing a 12.9% increase from the same month in 2023.
Inventory and New Listings Year-to-Date
Ottawa’s housing supply remains tight, but the inventory is gradually recovering:
New listings saw a 3.9% increase year-over-year, with 2,343 residential properties hitting the market in September 2024. This number was 4.7% above the five-year average and 11.6% above the 10-year average for September.
Active listings at the end of September totaled 3,529 units, up 16.9% from a year ago. Active inventory levels were also 43.3% above the five-year average and 4.6% higher than the 10-year average.
Months of inventory, which indicates how long it would take to sell current stock at the current sales pace, stood at 3.4 months, slightly up from 3.2 months in September 2023.
Key Takeaways
Ottawa's real estate market in 2024 is showing signs of recovery and resilience despite continued supply challenges. While sales have picked up, the city remains constrained by a lack of new housing development, which contributes to the "missing middle" housing crisis. Buyers and sellers alike are adapting to shifting market conditions, including potential interest rate changes, while the market itself remains healthy with steady prices and increasing activity.
For prospective buyers, Ottawa continues to offer stable investment opportunities, especially in the single-family home sector, while townhouse and apartment prices have seen slight declines. As the fall market progresses, the key challenge remains addressing Ottawa's supply issues to keep pace with growing demand.
Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.
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