Spring has sprung in Ottawa, and the real estate market is showing early signs of buzzing activity. According to the Ottawa Real Estate Board (OREB), home sales through the MLS® System totaled 1,165 units in March 2024, marking a 10% increase from the previous year. While this surge in sales is promising, it’s important to note that home sales for the month were still below both the five-year and ten-year averages by 21.5% and 15%, respectively.
On a year-to-date basis, home sales saw a 13.1% increase compared to the same period in 2023, indicating a promising start to the year for Ottawa’s real estate market.
OREB President Curtis Fillier acknowledges the overall health of Ottawa’s real estate market, attributing the increase in new and active listings to growing seller confidence. However, Fillier notes that buyers might not be acting as swiftly due to concerns about affordability and supply constraints.
Fillier suggests that shifts in post-pandemic lifestyles are driving changes in housing needs, with some individuals downsizing or relocating from the outskirts to more central areas of the city. This dynamic is creating pressure on the mid-range property market, which is already known to be tight in Ottawa.
In terms of pricing, the MLS® Home Price Index (HPI) reveals positive trends. The overall MLS® HPI composite benchmark price saw a 2.7% increase from March 2023, with single-family homes experiencing a similar gain at 2.6%. Townhouse/row unit prices rose slightly by 0.9%, while apartment prices surged by 4.3%.
The average price of homes sold in March 2024 was $682,078, marking a 5.1% increase from the previous year. Meanwhile, the year-to-date average price showed a more moderate rise of 3.2%.
Looking at inventory and new listings, March 2024 saw a 13.5% increase in new residential listings compared to March 2023. However, new listings fell slightly below the five-year average and significantly below the ten-year average for the month. Active residential listings, on the other hand, experienced an 18.3% increase from March 2023, reaching levels not seen in over five years.
Despite the increase in active listings, the months of inventory remained relatively low at 2.2, just slightly up from the previous year and below the long-run average for this time of year.
In conclusion, Ottawa’s real estate market is showing signs of a busy spring season. With growing seller confidence, shifting buyer preferences, and positive price trends, both buyers and sellers should stay vigilant and act promptly in navigating this dynamic market.
