Here are some key highlights from the Ottawa Real Estate Market activity in September 2024

Key Statistics:

1. Home Sales:

   • Total sales in September 2024 were 1,047 units, up 11.4% from September 2023.

   • Sales were still below the five-year average by 17.4% and 15.4% below the ten-year average.

2. Prices:

   • Overall MLS® HPI Composite Benchmark Price: $642,800, a slight increase of 0.2% from a year ago.

   • Single-family home benchmark price: $729,000, up by 0.5%.

   • Townhouse price: $500,000, down 1.7%.

   • Apartment price: $414,200, down 1.3%.

   • Average home price in September was $685,551, a rise of 1.4% year-over-year.

3. Listings and Inventory:

   • New listings increased by 3.9% compared to last year, with 2,343 listings in September.

   • Active listings saw a 16.9% jump, totaling 3,529 units.

   • Months of inventory was at 3.4 months, slightly higher than the 3.2 months in September 2023, showing more homes available but not a drastic oversupply.

4. Market Activity Trends:

   • Year-to-date sales up 6.4% from 2023.

   • Median days on market rose to 22 days, reflecting slower sales compared to the faster-paced market of previous years.

What This Means for Buyers and Sellers:

For Buyers:

• Increased Listings: More homes are hitting the market, offering a wider range of choices. However, competition is still present, particularly in popular neighborhoods.

• Price Stability: Prices have remained relatively steady, with only minor fluctuations depending on the type of property. The slight dip in apartment and townhouse prices could create opportunities for buyers looking in those segments.

• Longer Amortization & Insured Mortgage Rules: First Time Home Buyers definitely can benefit from extended amortization periods and higher price caps for insured mortgages. Just remember that nothing is free and a longer amortization might allow you to get in the market but will increase the interest you pay on this loan dramatically. A good strategy needs to be put in place to avoid unnecessary costs.

For Sellers:

• Rising Inventory: More active listings mean more competition for sellers. Homes are taking longer to sell, so pricing your property realistically is key to attracting buyers.

• Steady Prices: While prices have not increased dramatically, they are holding steady, which is a good sign for sellers who don’t have to lower expectations significantly.

• Preparedness for a Longer Sale Process: Given that median days on market have increased, sellers should be prepared for a potentially longer sales cycle and adjust their strategies accordingly.

My Insights on the Future of Ottawa Real Estate:

1. Chronic Supply Issues: Ottawa continues to struggle with housing supply. The city has met only 22% of its annual housing target, and CMHC reports that population-adjusted construction is at its lowest level in 10 years. This means that while there’s increased demand, the lack of new housing developments will keep the market tight.

2. Interest Rates and Affordability: With potential interest rate cuts and changes to mortgage insurance rules, buyers may have more room to maneuver financially. However, Ottawa’s supply problems mean that prices will continue to trend upwards.

   The bottom line is that while the market is still favoring sellers to some extent, buyers have more negotiating power than in previous years, especially with new mortgage rules possibly on the horizon. But, Ottawa’s supply crunch means the long-term outlook will likely keep prices on an upward trajectory, though more slowly than in recent years.