The year ended with the expected seasonal slowdown during the holiday season following a period of cautious optimism. The latter half of the year brought signs of more favourable market conditions; marked by consecutive interest rate reductions, increased insured mortgage limits, and longer amortization periods. However, it’s too soon to gauge the full effects of these changes, especially as affordability challenges and supply shortages continue to pose significant hurdles.

The year 2024 proved to be a dynamic and unpredictable period for Ottawa’s real estate market.

At the start of the year, we projected a bank rate decrease of 0.5–1.5% and anticipated home prices to rise by approximately 4%. However, as 2024 draws to a close, the bank rate as of December 11th stands at 3.25%, marking a 1.75% drop. This decrease was slightly larger than expected but nonetheless welcome and encouraging.

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 totalled 11,662 units in October 2024 — an increase of 9.4% from the same period in 2023.

On a year-to-date basis, home sales totaled 10,485 units in September 2024 — an increase of 6.4% from the same period in 2023. Market activity is robust with an uptick in sales and prices remaining steady. Meanwhile, both buyers and sellers are rethinking their purchasing power amidst news about additional interest rate cuts on the horizon, longer amortizations, and increased price caps for insured mortgages.

Over the course of the summer, the Ottawa Real Estate Market saw encouraging, sustained levels of activity. Coupling that with the third consecutive decrease in interest rates by the Bank of Canada, we are anticipating a heated fall market.

On a year-to-date basis, home sales totaled 9,444 units in August 2024 — an increase of 6.0% from the same period in 2023.

While selling your home yourself is an option, it’s important to balance the savings made not paying a commission with the work and risks involved.

Selling your home on your own (also know as a For Sale By Owner or FSBO) can be difficult and time consuming, especially in our current market. There are many considerations, including: “am I a good negotiator?”; “am I aware of all of the legal issues including disclosures?”; “what is the right price to set?”; “do I want a fast sale?” or “ how does a bidding war work?”. There are many questions to get the answers to in order to make an informed decision.

As of July, the number of units sold year-to-date increased 5.5% compared to the same period in 2023. While summer traditionally sees a slowdown in the resale market, the activity in July is promising and may indicate potential gains ahead. See the Ottawa Area Market Reports for July 2024.

With the first rate decrease in four years, what are the trends telling us about the Ottawa real estate market for the rest of 2024? .. See the Ottawa Area Market Reports for June 2024.