The Ottawa real estate market ended the year with notable changes, as the number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) reached 613 units in December 2024, reflecting a 7.9% increase from December 2023.
While this growth is encouraging, home sales were still 6.8% below the five-year average and 2.7% below the 10-year average for December. However, on a year-to-date basis, total home sales in 2024 rose significantly, with 13,526 units sold—a solid 11.8% increase compared to 2023.
Insights from OREB
“A year of wait-and-see came to a close with the expected slowdown over the holiday season,” said OREB President Paul Czan. The latter half of the year showcased more favorable market conditions driven by factors like consecutive interest rate drops, higher insured mortgage limits, and extended amortizations.
While these changes are promising, affordability and supply challenges remain critical hurdles. According to OREB, sellers are optimistic that improving market conditions could encourage hesitant buyers to act. However, a lack of affordable inventory continues to stall movement in the market. Despite political uncertainties, there’s a growing sense of optimism for increased activity in the coming months.
By the Numbers: Prices
The MLS® Home Price Index (HPI) remains the most accurate tool to track price trends, offering a detailed picture of market changes.
- Overall MLS® HPI Composite Benchmark Price: $645,800 (up 3.8% from December 2023)
- Single-Family Homes: $729,300 (up 3.7% year-over-year)
- Townhouses/Row Units: $533,200 (up 11.3% year-over-year)
- Apartments: $404,400 (down 2.5% year-over-year)
The average sale price of homes in December 2024 was $663,781, reflecting a 4.4% increase from December 2023. Year-to-date, the average price rose to $679,067, a modest 1.3% growth from the previous year.
By the Numbers: Inventory & New Listings
- New Listings: 603, up 13.6% from December 2023, and 3.5% above the five-year average.
- Active Listings: 3,216 units, marking a significant 58.7% increase from December 2023. Active listings were 90% above the five-year average and 51.4% above the 10-year average.
- Months of Inventory: 5.2 months as of December 2024, compared to 3.6 months in December 2023.
A Look Ahead
The Ottawa real estate market is showing positive momentum as 2025 approaches, with improving conditions and cautious optimism. However, affordability and supply challenges will remain key themes to watch. Buyers and sellers are advised to stay informed and work closely with a knowledgeable real estate professional to navigate this evolving market.
If you have questions about these trends or are considering buying or selling a home, feel free to reach out—I’m here to help you make the most informed decisions.
