Ottawa’s MLS® Market Making Headway
The Ottawa real estate market continued its recovery in November 2024, with the MLS® System of the Ottawa Real Estate Board (OREB) reporting 1,059 units sold. While this marked a slight decrease from October’s 1,179 units, it represents steady progress for a market rebounding from the slowdown of 2023.
Home sales in November 2024 were 3.1% below the five-year average and 0.5% below the 10-year average for the month. Year-to-date, however, sales reached 12,882 units, reflecting an 11.8% increase compared to the same period in 2023.
Market Insights from OREB
“Ottawa’s market is making headway on a long road back from the slowdown experienced in 2023,” said OREB Past-President Curtis Fillier. “Buyers have been slow to come back to the market while watching the interest rates lower, and some are waiting to see how new mortgage rules—the extended amortization period and the increased default insurance cap—coming into effect in December may redefine their purchasing power. Sellers have noticed that caution, and those who can are likely holding on for a more active spring.”
Fillier added, “There will be the typical slowdown at this time of the year as people’s attentions turn to the holidays, and the snow starts to cover a property’s selling features. With prices holding steady and open houses getting traffic, though, people are keeping a close eye on opportunities.”
By the Numbers: Prices
The MLS® Home Price Index (HPI), a reliable measure of price trends, reported the following for November 2024:
- Overall composite benchmark price: $636,700 (up 1.5% year-over-year).
- Single-family homes: $722,400 (up 2.1% year-over-year).
- Townhouses/row units: $491,500 (up 0.3% year-over-year).
- Apartments: $406,200 (down 3.7% year-over-year).
The average price of homes sold in November 2024 was $667,098, an increase of 4.6% from November 2023. Year-to-date, the average price reached $679,797, up 1.2% from the same period in 2023.
The total dollar volume of all home sales in November 2024 reached $706.4 million, a significant 51.8% increase compared to November 2023.
OREB advises that while average sale prices are helpful for identifying trends, they should not be used to estimate the value of specific properties. Real estate values can vary significantly across neighborhoods.
By the Numbers: Inventory & New Listings
The supply side of the market experienced the following changes in November 2024:
- New residential listings: 1,352, down 7.3% from November 2023. This figure was 6.3% below the five-year average but 0.3% above the 10-year average for November.
- Active residential listings: 4,036 units at the end of November 2024, an increase of 38.2% from November 2023. Active listings were 72.8% above the five-year average and 44.3% above the 10-year average.
- Months of inventory: 3.8, compared to 4.0 in November 2023. This metric reflects the time it would take to sell current inventory at the current sales pace.
What’s Next for Ottawa Real Estate?
As the year draws to a close, Ottawa’s real estate market shows signs of stability and cautious optimism. Buyers are closely monitoring evolving mortgage rules and market conditions, while sellers are preparing for what could be a more active spring season. Whether you’re looking to buy, sell, or invest, staying informed about market trends will be key to navigating opportunities in 2025.
