[Read more…]Ottawa Real Estate News Release (OREB) – Ottawa’s MLS® Market Making Headway
December 9, 2024
The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totaled 1,059 units in November 2024 — a slight dip down from the 1,179 units sold the month previous.
Home sales were 3.1% below the five-year average and 0.5% below the 10-year average for the month of November.
On a year-to-date basis, home sales totaled 12,882 units in November 2024 — an increase of 11.8% from the same period in 2023.
“Ottawa’s market is making headway on a long road back from the slowdown experienced in 2023,” says 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.”
“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,” says Fillier. “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) tracks price trends far more accurately than is possible using average or median price measures.
- The overall MLS® HPI composite benchmark price was $636,700 in November 2024, an increase of 1.5% from November 2023.
- The benchmark price for single-family homes was $722,400, up 2.1% on a year-over-year basis in November.
- By comparison, the benchmark price for a townhouse/row unit was $491,500, up 0.3% compared to a year earlier.
- The benchmark apartment price was $406,200, down 3.7% from last year.
- The average price of homes sold in November 2024 was $667,098 increasing 4.6% from November 2023.
- The more comprehensive year-to-date average price was $679,797, increasing by 1.2% from November 2023.
- The dollar volume of all home sales in November 2024 was $706.4 million, up 51.8% from November 2023.
By the Numbers – Inventory & New Listings
- The number of new listings saw a decrease of 7.3% from November 2023. There were 1,352 new residential listings in November 2024. New listings were 6.3% below the five-year average and 0.3% above the 10-year average for the month of November.
- Active residential listings numbered 4,036 units on the market at the end of November 2024, a gain of 38.2% from November 2023. Active listings were 72.8% above the five-year average and 44.3% above the 10-year average for the month of November.
- Months of inventory numbered 3.8 at the end of November 2024, compared to 4.0 in November 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
Housing starts for October 2024
On November 18 the CMHC released the housing starts statistics for October 2024. Here are the key points.
The seasonally adjusted annual rate (SAAR) of housing starts for urban areas (populations of 10,000 or more) saw a 6% increase in October 2024, reaching 223,111 units. Multi-unit urban starts rose by 7%, totaling 175,705 units, while single-detached urban starts edged up by 1% to 47,406 units.
In rural areas, the SAAR estimate for housing starts stood at 17,650 units.
Year-to-date data for January to October 2024 shows housing starts in Montreal up 12% compared to the same period last year, signaling a recovery from the low levels seen in 2023. Meanwhile, Vancouver’s starts are down 18% compared to 2023, although last year set a record high. Similarly, Toronto’s starts are 21% lower year-to-date than in 2023, another year marked by unusually high activity.
Monthly housing start statistics, along with other construction data, are published in both English and French on the CMHC Housing Market Information Portal. The next release, covering November’s housing starts, will be available on December 16 at 8:15 AM ET.
To provide more context, CMHC uses trend measures alongside the monthly SAAR figures to better understand fluctuations in the data. The multi-unit segment, which often drives the market, can experience significant monthly variation, making trend analysis a valuable tool for identifying longer-term supply patterns.
Housing starts data also contributes to CMHC’s broader housing reports, offering insights into monthly, quarterly, and year-over-year trends in the new home market.
Canadian Real Estate Market on the Rise: Home Sales Activity Hits New Highs in October 2024
The Canadian real estate market continues to show resilience and growth as home sales activity recorded over MLS® Systems nationwide surged by 7.7% month-over-month in October 2024. This increase marks the highest level of sales since April 2022, a clear sign of recovery and renewed confidence in the housing market.
Market Trends: What’s Driving the Increase in Sales?
Several factors have contributed to the uptick in home sales across Canada:
- Improved Buyer Confidence: As the economy stabilizes and interest rates show signs of leveling off, buyers are feeling more confident about making major financial commitments.
- Inventory Availability: Many regions are seeing increased listings, providing buyers with more options. This has invigorated market activity in cities such as Toronto, Vancouver, and Ottawa.
- Seasonal Adjustments: Historically, fall is a strong period for real estate transactions as families and investors look to finalize purchases before the year’s end.
Breaking Records: The Highest Sales Levels Since April 2022
The last time the Canadian real estate market saw such robust activity was in April 2022, during a period of heightened demand and competitive bidding wars. While the market today operates under more stabilized conditions, the surge in sales suggests that demand remains high for well-priced properties.
For condo buyers and sellers, this is particularly important. Condos remain an attractive option due to:
- Affordability: Compared to detached homes, condos provide a cost-effective entry point for first-time buyers.
- Urban Living: Condos in urban areas like downtown Ottawa, Toronto, and Montreal are in high demand due to their proximity to amenities and workplaces.
- Investment Potential: Investors continue to see condos as lucrative opportunities for rental income and long-term appreciation.
Regional Highlights
While the national trend is positive, specific markets are driving this growth:
- Toronto and Vancouver: These metropolitan hubs continue to attract buyers with diverse housing options, including luxury condos and townhouses.
- Ottawa: As the nation’s capital, Ottawa has seen steady growth, particularly in the condo sector. Popular neighborhoods like The Glebe, West Centre Town, and South Keys are experiencing renewed interest.
- Smaller Cities: Emerging markets in smaller cities have also gained traction, offering buyers affordability without sacrificing quality of life.
What This Means for Condo Sellers
For condo owners considering selling, this surge in market activity presents a golden opportunity. A few tips to capitalize on the trend:
- Stage Your Condo: Ensure your condo is clean, decluttered, and staged to appeal to buyers.
- Highlight Amenities: Emphasize unique building features such as gyms, pools, or proximity to transit.
- Work with a Realtor: Partnering with a knowledgeable local realtor ensures you price competitively and market effectively.
For Buyers: How to Navigate the Market
- Get Pre-Approved: Rising demand could mean increased competition, so being pre-approved for a mortgage gives you a competitive edge.
- Stay Informed: Monitor listings in your preferred neighborhoods and act quickly on desirable properties.
- Think Long-Term: Whether buying as an end-user or an investor, focus on properties with strong appreciation potential.
Looking Ahead
The October 2024 sales increase is a clear indicator that the Canadian real estate market remains dynamic and full of opportunities. For buyers, sellers, and investors in the condo sector, this is an excellent time to evaluate options and make informed decisions.
Whether you’re looking to buy your first condo, upgrade your current home, or explore investment opportunities, the current market conditions make it an exciting time to participate in Canadian real estate.
Ready to Buy or Sell a Condo in Ottawa?
As an experienced realtor specializing in Ottawa condos, I’m here to help you navigate this vibrant market. Reach out today to explore available listings or get expert advice on selling your condo. Let’s make your real estate goals a reality!
Royal LePage 2024 Winter Recreational Property Report
The Royal LePage 2024 Winter Recreational Property Report provides an optimistic forecast for the recreational property market in Canada. Here are some key highlights:
- Market Revival: The report predicts a 7.5% increase in ski chalet prices for 2025, driven by improving borrowing conditions and renewed buyer confidence. This comes after two years of limited activity due to high interest rates.
- Current Trends: Despite the high interest rate environment, recreational property prices have remained relatively stable. The national median price for a single-family detached home in ski areas is expected to rise to $1,019,960 over the next 12 months.
- Regional Variations: While some regions like Canmore have seen price increases, other areas in British Columbia experienced price drops. The report notes that Quebec’s recreational markets have shown solid price appreciation despite economic uncertainties.
- Buyer Behavior: Recreational homebuyers often use equity from their primary residences or pay in cash, but they still watch interest rates closely as an indicator of the economy’s health. The report suggests that additional rate cuts by the Bank of Canada could boost buyer confidence and activity.
- Longer Selling Times: The report highlights that properties are staying on the market longer, with 75% of Royal LePage’s recreational property specialists noting longer selling times.
Does this cover what you were looking for, or is there a specific aspect you’d like to know more about?
Ottawa Real Estate Statistics – October 2024
Ottawa Real Estate Newsletter – November 2024
Ottawa Real Estate News Release (OREB) – Consumer Confidence Cautiously on the Rise in Ottawa Resale Market
November 6, 2024
The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totaled 1,179 units in October 2024 — an increase over the 1,047 units sold last month.
Home sales were 3.9% below the five-year average and 0.9% below the 10-year average for the month of October.
On a year-to-date basis, home sales totaled 11,662 units in October 2024 — an increase of 9.4% from the same period in 2023.
“We’re seeing positive movement in Ottawa’s market with sales activity up,” says OREB President Curtis Fillier. “This is especially interesting because there has been sustained activity throughout the year instead of the typical seasonal spikes and lulls. Consumer confidence is getting stronger, boosted by another consecutive Bank of Canada interest rate cut — though many are waiting for additional rate drops.”
The 50-basis-point reduction might offer optimism following Ontario’s tabling of the Fall Economic Statement where housing starts projections were scaled back to 81,300, representing another reduction in projections and is even further from the province’s goal of creating 125,000 new homes in 2024. The Ontario government cites high interest rates and a tough economic environment as pervasive challenges for homebuilders.
“The challenge remains supply,” says Fillier. “We know from experience that Ottawa’s inventory leans tight and can swing quickly from balanced territory to a seller’s market — which can compound affordability and accessibility challenges. Now is always the time for fresh action and innovative policies that can create much-needed inventory.”
OREB leaders and volunteers recently joined the Canadian Real Estate Association on Parliament Hill to present focused solutions to confront the ongoing housing supply crisis. With expertise and experience in market conditions and consumer needs, REALTORS® advocated to stimulate supply by investing in offsite construction technologies (i.e. prefabricated homes) and extending HST/GST relief for non-profit-built affordable ownership housing.
By the Numbers – Prices:
The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.
- The overall MLS® HPI composite benchmark price was $639,500 in October 2024, an increase of 0.4% from October 2023.
- The overall MLS® HPI composite benchmark price was $639,500 in October 2024, an increase of 0.4% from October 2023.
- The benchmark price for single-family homes was $724,500, up 0.7% on a year-over-year basis in October.
- By comparison, the benchmark price for a townhouse/row unit was $506,900, up 1.6% compared to a year earlier.
- The benchmark apartment price was $407,500, down 3.4% from last year.
- The average price of homes sold in October 2024 was $668,690 increasing 1.2% from October 2023. The more comprehensive year-to-date average price was $678,081, increasing by 0.9% from October 2023.
- The dollar volume of all home sales in October 2024 was $788.3 million, up 47.7% from October 2023.
By the Numbers – Inventory & New Listings
- The number of new listings saw an increase of 10.4% from October 2023. There were 2,089 new residential listings in October 2024. New listings were 6.7% above the five-year average and 17% above the 10-year average for the month of October.
- Active residential listings numbered 3,354 units on the market at the end of October 2024, a gain of 8.9% from October 2023. Active listings were 40.6% above the five-year average and 6.7% above the 10-year average for the month of October.
- Months of inventory numbered 2.8 at the end of October 2024, compared to 3.8 in October 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
Ottawa Condo Market: Navigating the Latest Mortgage Rate Drop
The recent mortgage rate drop by the Bank of Canada has sparked significant interest and activity in the Ottawa condo market. As a REALTOR® specializing in condominiums, it’s essential to understand these shifts and what they mean for both buyers and sellers.
Increased Buyer Interest:
Following the rate cut, there’s been a notable uptick in buying interest, particularly among first-time homebuyers and investors. Lower borrowing costs have made mortgages more accessible, encouraging more people to explore condo ownership.
Price Adjustments:
The average selling price of a condo in Ottawa was $414,200 in September 2024, marking a slight decrease of 0.6% compared to the previous month. While prices have decreased by 1.3% year-over-year, the recent rate drop has the potential to stabilize prices and even drive them upwards as demand increases.
Market Dynamics:
The condo market is showing signs of increased activity, but it’s still early days. Some buyers remain cautious, waiting to see if prices will stabilize further. However, the general trend indicates a more dynamic market with potential for growth.
Dwindling Inventory:
One of the challenges in the Ottawa condo market is the dwindling inventory. As more buyers enter the market, the competition for available units intensifies. This could lead to quicker sales and potentially higher prices for well-located and well-maintained condos.
Opportunities for Sellers:
For condo owners looking to sell, now might be an opportune time. The increased buyer interest and lower mortgage rates create a favorable environment for sellers to list their properties and potentially achieve better prices.
Tips for Buyers:
- Act Quickly: With increasing competition, it’s crucial to act quickly when you find a condo that meets your needs.
- Get Pre-Approved: Ensure you’re pre-approved for a mortgage to streamline the buying process and strengthen your position when making offers.
- Work with a REALTOR®: A knowledgeable REALTOR® can help you navigate the competitive market and find the best deals.
Conclusion:
The recent mortgage rate drop has brought renewed energy to the Ottawa condo market. As a REALTOR® focused on this sector, staying informed and prepared can help you seize the opportunities this dynamic market presents.
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