October 2024 Ottawa Real Estate Market Trends and Insights

Ottawa’s real estate market made waves this October, showing signs of steady growth and shifting dynamics. From increased sales to evolving price trends, there’s plenty to unpack. Whether you’re considering buying, selling, or just curious about what’s happening in the market, here’s the latest scoop on what’s driving the numbers.

Sales Are Up, But Are They Where They Should Be?

This October, 1,179 homes changed hands through the Ottawa Real Estate Board’s MLS® system—up from 1,047 in September. That’s a significant month-over-month boost, but when we zoom out, the picture is a little more nuanced. Sales were still 3.9% below the five-year average and 0.9% below the 10-year average for October.

It’s worth noting that Ottawa’s market has been moving more steadily than usual this year. Activity has been more sustained throughout the year, instead of the usual seasonal spikes. This is encouraging news for a city that’s often influenced by unpredictable market trends!

Home Prices: What’s Rising and What’s Falling

Let’s talk about prices, because who isn’t curious about what homes are going for these days?

The MLS® Home Price Index (HPI), which provides a clearer picture of price trends than averages alone, shows the overall benchmark price for October was $639,500, up a modest 0.4% from last year.

• Single-family homes remain the priciest, with a benchmark price of $724,500—a 0.7% increase year-over-year.
• Townhouses/row units saw the biggest jump, with a benchmark price of $506,900, up 1.6% from 2023.
• On the flip side, apartments had a tough month, with their benchmark price dropping 3.4% to $407,500.

For perspective, if you’re house-hunting, this means single-family homes are holding their value, townhouses are getting more popular, and apartments might offer a bargain. If you’ve been eyeing a condo, now could be the time to make your move.

While the average price of homes sold in October hit $668,690, it’s important to remember not to take this number as gospel for what your property is worth. Average prices are more about trends than specifics, and neighbourhood-to-neighbourhood variations can be significant.

More Homes, More Choices (But Not Enough Yet)

If you’ve been waiting for more options to hit the market, October brought some good news. New residential listings rose 10.4% from last year, with 2,089 homes entering the market. This puts listings 6.7% above the five-year average and 17% above the 10-year average for October.

Active listings also climbed to 3,354 homes, up 8.9% from last year. While this sounds like a win for buyers, inventory remains tight. The months of inventory—a measure of how long it would take to sell all current listings at the current pace—dropped to 2.8 months, down from 3.8 months last October.

What does that mean for you? If you’re a buyer, you’ll have a bit more to choose from, but competition is still fierce in certain areas. For sellers, it’s a sign that demand is holding steady—if you’re considering listing, now could be a good time.

Economic Factors at Play

What’s driving these changes? One key factor is the 50-basis-point interest rate cut by the Bank of Canada, which has injected a dose of optimism into the market. But even with rates coming down, many buyers are playing the waiting game, hoping for further reductions before making a move.

On a broader scale, challenges in housing supply persist. Ontario’s Fall Economic Statement scaled back housing starts projections to 81,300 units, far below the province’s goal of 125,000 new homes in 2024. High interest rates and rising costs for builders continue to slow construction.

Advocating for Change

OREB is stepping up to tackle these issues head-on. Earlier this month, REALTORS® joined forces with the Canadian Real Estate Association on Parliament Hill to push for solutions to the housing crisis. Their proposals included:

• Investing in offsite construction technologies, like prefabricated homes, to speed up building times.
• Extending HST/GST relief for affordable housing projects built by non-profits.

These forward-thinking measures could help ease the supply crunch and create more opportunities for buyers.

What This Means for You

For buyers, the increase in listings is a welcome sign, but with inventory still tight in certain segments, acting quickly is key. If you’re looking for value, keep an eye on apartments and explore emerging neighbourhoods where prices may be more competitive.

For sellers, the market remains favourable, especially for single-family homes and townhouses. With prices holding steady or climbing slightly, now could be a great time to list before the slower winter months.

Final Thoughts

The Ottawa real estate market in October 2024 paints a picture of cautious optimism. Sales are climbing, prices are stable, and inventory is growing—but challenges remain, particularly around supply and affordability.

Whether you’re buying, selling, or just staying informed, one thing is clear: the market is evolving. Work with an experienced REALTOR® to navigate the trends and find the opportunities that best align with your goals.

After all, every challenge in real estate also brings possibilities—and this October, those possibilities are yours to explore.