Ottawa’s Real Estate Market in September 2024: A Healthy Outlook Amid Shifting Conditions

The Ottawa real estate market showed promising signs of growth in September 2024, according to the latest data from the Ottawa Real Estate Board (OREB). With an increase in both home sales and prices, the market remains healthy despite lingering concerns about supply and affordability.

Home Sales Surge in September 2024

A total of 1,047 homes were sold through the MLS® System of the Ottawa Real Estate Board in September 2024, marking an 11.4% increase compared to the same month in 2023.

On a year-to-date basis, Ottawa saw a total of 10,485 home sales, a 6.4% increase from the same period last year.

“Activity is robust with an uptick in sales and prices remaining steady,” said the OREB President. “As we navigate a shifting housing market, Ottawa’s fall outlook is healthy. Both buyers and sellers are reassessing their purchasing power in light of potential interest rate cuts, longer amortizations, and increased price caps for insured mortgages.”

Supply Challenges Continue to Impact the Market

“We’re not building enough homes in the city, and we’re not building enough of the right homes to address the ‘missing middle,’” the OREB President added.

The Canada Mortgage and Housing Corporation (CMHC) recently reported that Ottawa’s population-adjusted construction is at its lowest level in nearly a decade. A City of Ottawa progress report showed that the city is only at 22% of its annual housing target as of the end of August 2024, underscoring the urgency of addressing supply shortages.

Home Prices in September 2024: A Mixed Bag

Here’s a breakdown of the benchmark prices for different property types:

• Single-family homes: $729,000 (+0.5% year-over-year)

• Townhouse/row units: $500,000 (-1.7% year-over-year)

• Apartments: $414,200 (-1.3% year-over-year)

  
  

The average price of homes sold in September 2024 was $685,551, a 1.4% increase compared to the same month last year. The year-to-date average price of homes in Ottawa was $679,082, reflecting a 0.9% increase from 2023.

While these figures indicate steady price trends, OREB cautions that the average sale price can only provide a general trend over time. It should not be used as an indicator of specific property values, as prices vary significantly from one neighbourhood to another.

The Bottom Line

As buyers and sellers reassess their strategies in light of potential interest rate cuts and policy changes, the market is expected to remain active in the coming months. However, for sustained growth, Ottawa must find ways to increase housing supply and build more homes to meet the needs of a diverse population.