January 2024 Market Insights: Navigating New Trends and Predictions in the Dynamic Real Estate Landscape

As we look at the Ottawa real estate market for January 2024, we see some interesting trends and numbers. Let’s break these down to help you understand the market more clearly.

Home Sales and Market Activity

In January 2024, 629 homes were sold through the Ottawa Real Estate Board’s MLS® System. This represents a 16.5% increase compared to January 2023, indicating a positive trend in sales. However, when we compare these figures to the average sales of the past five and ten years, we find that January 2024’s sales were slightly lower: 10.7% below the five-year average and 3.9% below the ten-year average.

The Ottawa market is showing some positive movement compared to last year, but it’s still quieter than what was seen even before the pandemic. While there is plenty of activity in terms of showings, it just doesn’t always lead to sales. This suggests that buyers are actively searching but remain cautious. In recent years, buyers often had to make quick decisions and compromise on their ideal property. Now, the market pace allows them to take their time to find the perfect home.

Prices and Trends

When it comes to prices:

• The MLS® Home Price Index (HPI) composite benchmark price in January 2024 was $621,600, marking a 3.2% increase from January 2023.
• For single-family homes, the benchmark price was $703,500, up by 3.7% year-over-year.
• Townhouse/row unit prices saw a slight decrease, with the benchmark price at $462,200, down 2.1% from the previous year.
• Apartment prices experienced an increase, with the benchmark at $418,500, up 3.7% from last year.
• The average price for homes sold in January was $631,722, a 1.8% rise from January 2023.
• Total dollar volume of all home sales was $397.3 million, an 18.6% increase from January 2023.

It’s important to note that these average prices indicate market trends and may not reflect the specific value changes of individual properties. Real estate prices can vary significantly across different neighbourhoods.

Inventory and Listings

• January 2024 saw a 7.3% increase in new listings compared to January 2023, with 1,271 new residential listings.
• These new listings were 17.5% above the five-year average and 0.8% above the ten-year average.
• Active residential listings totalled 1,961 units at the end of January 2024, which is a 4.5% increase from the end of January 2023.
• Active listings were significantly higher than the five-year average (57.4% above) but still below the ten-year average (16.6% below).
• The months of inventory stood at 3.1 at the end of January 2024, slightly down from 3.5 months at the end of January 2023. This figure represents the time it would take to sell current inventories at the current rate of sales activity.

Final Thoughts

The Ottawa real estate market in January 2024 has shown growth in sales compared to the previous year, but it still lags behind the longer-term averages. Prices have seen moderate increases, and there’s been a noticeable rise in new listings. This data provides valuable insights for both buyers and sellers, indicating a market where buyers are taking a more measured approach and sellers are advised to strategize pricing and timing carefully.

For anyone navigating this market, understanding these trends and numbers is crucial for making informed decisions, whether you’re looking to buy, sell, or simply keep a pulse on the market.