Market Update
The Ottawa Real Estate Board reports 1,100 properties (residential & condominiums) sold in August 2024, approximately a 10.2% decrease in homes sold when compared to August 2023. Home sales totaled 9,444 units for the first eight months of the year, representing approximately a 6% increase for the same period in 2023. Supply of homes on the market is increasing which is good for potential purchasers. Buyer confidence is increasing with the third consecutive interest rate cut, however, buyers are being thorough, looking at more homes and being cautious with their finances. Successful purchases and sales continue to be based on pricing based on market value, homes in good repair and presented and marketed well.
The Ottawa Real Estate Board is now 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). The overall MLS® HPI composite benchmark price was $646,000 in August 2024, a slight decrease of approximately 0.3% from August 2023. Benchmark price for single family homes was $732,500, down 0.3% on a year-over-year basis when compared to August 2023. The benchmark price for a townhouse/row unit was $502,200, up 0.3% compared to a year earlier. The benchmark apartment price was $416,800 representing a 1.2% decrease from a year ago.
The average sale price for homes sold in August 2024 was $660,341, increasing 0.3% from August 2023. The year to date average price was $678,327, increasing by approximately 0.9% from the first 8 months of 2023. Keep in mind, these are averages so some homes experienced a larger gain and some less, it is key to look at what is happening in your neighborhood, surrounding neighborhoods and with comparable homes. (Ottawa’s Hot Summer Market Expected to Extend into Fall, September 5, 2024)
For Kanata, unit sales in August 2024 (all housing types) were 87, translating to approximately a 3.6% increase when compared with August 2023. For greater Stittsville, unit sales in August 2024 (all housing types) were 71 units, representing approximately a 20.3% increase from August 2023. In Kanata, the average sale price in August 2024 was $695,124 for all housing types, representing approximately a 4.9% decrease when compared to August 2023. Year to date, the average sale price in Kanata was $718,918, a 0.8% increase when compared to the same time frame in 2023. For greater Stittsville, the average sale price in August 2024 versus August 2023, increased 0.7%to $800,902 for all housing types. Year to date, the average sale price in greater Stittsville was $775,129, representing a 0.7% decrease when compared to the first eight months of the year in 2023. (Source: Ottawa Real Estate Board Residential Market Activity and MLS® Home Price Index Report-Detailed, August 2024)
August residential inventory in Ottawa – 1,907 new properties (all housing types) on the market in August 2024, an increase of approximately 0.2% when compared to August 2023 and 0.2% above the five-year average for August. At the end of August, there were 3,324 homes for sale (all housing types), about a 25.8% increase when compared to the end of August 2023 and 46.5% higher when compared to the 5 year average for August.
At the end of August 2024, Ottawa’s inventory of homes (all housing types) was 3 months, up from 2.6 months at the end of August 2023 (this is the number of months it would take to sell current inventories at the current rate of sales activity). However, the key is too look at the inventory in your own neighborhood and those close by if you are thinking of making a change. Contact us if you would like an update on your neighborhood.
Although new listings on the market have generally increased, you need to look at your specific neighborhood and the neighborhoods you are interested in, as well as the price points. Key is to be prepared whether you are looking to purchase, sell or do both, i.e. from financing, pre-approval, home evaluation and home maintenance and staging. We are still seeing some multiple offer situations and homes in good condition and good location sell well as there are some buyers who have been looking for a while and are now ready to purchase.
Click here to read our Ottawa Market Update August 2024 – 50 Years of Change.
Source: Ottawa’s Hot Summer Market Expected to Extend into Fall, September 5, 2024
