Market Update
The Ottawa Real Estate Board reports 565 properties (residential & condominiums) sold in December 2023, approximately a 7.6% increase in homes sold when compared to December 2022 and approximately 22% less when compared to November 2023 (724 units sold). Year to date (as of January 1, 2024) home sales totaled 11,978 units (for all housing types) in 2023, an 11.0% decrease when compared to 2022 for the same time period.
The Ottawa Real Estate Board will now be using the MLS® Home Price Index (HPI) to track changes in the real estate market (this tool is used by Canadian Real Estate Association across Canada). We will start to use this measurement and also provide some average data for Ottawa. The overall MLS® HPI composite benchmark price was $623,900 in December 2023, down 0.8% from November 2023, up 2.7% from December 2022. Benchmark price for single family homes was $704,900, up 2.7% when compared to December 2022. The benchmark price for a townhouse/row unit was $481,100, up 4.2% from a year-over-year basis in December. The benchmark apartment price was $417,200, representing a 2.1% increase from a year ago.
The average sale price for homes sold in December 2023 was $632,487, an increase of 1.7% from December 2022. Year to date Ottawa average price was $667,794, a decline of 5.5% when compared to the 2022. Keep in mind, its important to look at what is happening in your neighborhood and with comparable homes. (Source: Ottawa Real Estate Board, Residential Market Activity & MLS® Home Price Index Report – Highlight, December 2023)
For Kanata, unit sales in December 2023 (all housing types) were 51 compared to 69 sales in December 2022 (approximately a 26.1% decrease). For greater Stittsville, unit sales in December 2023 (all housing types) were 19 units, representing approximately a 24.0% decrease from December 2022. In Kanata, the average sale price in December 2023 was $691,296 for all housing types, a 3.4% increase when compared to December 2022. For greater Stittsville, the average sale price December 2023 versus December 2022, increased 12.1% to $793,394 for all housing types. (Source: December 2023 – Ottawa Real Estate Board Residential Market Activity and MLS® Home Price Index Report-Detailed, December 2023)
December residential inventory in Ottawa – 523 new listings (all housing types) in December, a decrease of approximately 12.4% when compared to December 2022. At the end of December, there were 1,844 homes for sale (all housing types), about a 3.0% increase when compared to the end of December 2022 and a 33% decrease when compared to November 2023 (2,752 active listings). It will be interesting to see how many of the properties that were on the market, come back on the market in January.
At the end of December 2023, Ottawa’s inventory homes (all housing types) was 3.3 months, a decrease from 3.4 months at the end of December 2022 (this is the number of months it would take to sell current inventories at the current rate of sales activity).
The Ottawa market ended 2023 fairly balanced, a positive indicator for 2024. As we move through January we will start to see more new properties come on the market. The Bank of Canada interest rate announcement near the end of January will give an early signal as to what the Spring market may be like. If you are planning to make a change, it is a good time to prepare your home and understand your budget, especially if you need to sell before you purchase. If you’re not sure if you need to sell to purchase, speak to us and your mortgage broker. The key again is to sell and purchase in the same type of market. For first time buyers, getting your pre-approval in place is an important first step, do it now, before we start to see further interest rate changes and more people enter the market. Click here to read our Ottawa Market Update December 2023 – 50 Years of Change.
Source: Ottawa MLS® December Home Sales Close Out Year in Steady State, OREB, January 4, 2024)