Ottawa’s Real Estate Market: A Robust Start in February 2024

As we dive into Ottawa’s real estate landscape, it’s clear that February 2024 has been a promising month, albeit with a few nuanced trends to understand.

Last month, the Ottawa real estate market saw 886 homes sold, a notable 15.2% increase from the same month last year. While this shows vibrant market activity, it’s important to note that sales were slightly lower than the average of the past five and ten years, down by 13.8% and 5.7% respectively.

The current market dynamics suggest a strong and active real estate scene in Ottawa, despite challenges like high prices and steady interest rates. This trend indicates a consistent interest from both buyers and sellers. However, the issue of affordability remains a concern, affecting the choices of potential homebuyers.

Reflecting on the broader Ontario real estate trends, the availability of homes priced under $500,000 has significantly declined. A decade ago, 74% of residential properties in Ontario fell under this price bracket, but now, this percentage has dwindled to just 19%. This shift underscores the growing need for more affordable housing options in the region.

Let’s Talk Pricing

• The overall MLS® Home Price Index (HPI) composite benchmark in Ottawa stood at $628,500 in February 2024, a 2.8% increase from the previous year.
• The benchmark price for single-family homes was $708,500, rising by 3.1% year-over-year.
• Townhouse and row units had a more modest growth, with a benchmark price of $495,000, up by 0.6%.
• Apartment prices saw a 2.7% increase from last year, reaching $417,000.

The average sale price in February was approximately $651,340, marking a 2% rise from February 2023. It’s crucial to remember that this average price indicates overall market trends and may not reflect the value change of individual properties.

On Inventory and Listings

• New residential listings in February 2024 saw a 29.5% increase from the previous year, with 1,539 new listings.
• These figures were 10.3% above the five-year average, yet 3.3% lower than the ten-year average for February.
• Active residential listings numbered 2,158, a 16.3% year-over-year increase.
• The months of inventory remained stable at 2.4, mirroring the situation from February 2023.

This snapshot of the Ottawa real estate market in February 2024 highlights a sector that is both dynamic and responsive to changing economic conditions. The trend points towards a sustained interest in property ownership, underpinned by the need for more affordable housing solutions to accommodate a wider range of buyers. As we move further into the year, it will be interesting to see how these trends evolve and shape the local market.