The Latest Ottawa Real Estate Statistics

Ottawa’s MLS® Market Activity Shows Strong Start to the Year

The Ottawa Real Estate Board (OREB) has released its latest market update for February 2024. The latest data reveals a robust start to the year, with February 2024 witnessing a notable increase in home sales through the MLS® System.

Strong Start in February

In February 2024, Ottawa saw a total of 886 homes sold through the MLS® System, marking a significant increase of 15.2% compared to the same period last year. OREB President Curtis Fillier attributes this surge in activity to a combination of factors, including higher prices and a stable interest rate, which have moved both buyers and sellers into action.

Market Dynamics and Affordability Concerns

Despite the buoyant market activity, Fillier acknowledges the persistent issue of affordability that continues to affect many prospective homebuyers. MPACs recent report highlights a concerning trend: communities with homes priced under $500,000 are increasingly rare. A decade ago, the majority of Ontario residential properties fell within this price range, but today, only a fraction do—a clear indication of the growing challenge of housing affordability.

Recognizing the pressing need for action, Fillier underscores the importance of advocating for impactful measures to address Ottawa's housing affordability crisis. OREB is actively championing initiatives such as allowing for four residential units on property lots and eliminating exclusionary zoning regulations. By promoting the development of the "missing middle," OREB aims to bolster Ottawa's housing supply and create more accessible housing options for residents.

Price Trends

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 $628,500 in February 2024, a gain of 2.8% from February 2023.
• The benchmark price for single-family homes was $708,500, up 3.1% on a year-over-year basis in February.
• By comparison, the benchmark price for a townhouse/row unit was $495,000, up slightly at 0.6% compared to a year earlier.
• The benchmark apartment price was $417,000, up 2.7% from year-ago levels.
• The average price of homes sold in February 2024 was $651,340, increasing 2% from February 2023.
• The dollar volume of all home sales in February 2024 was $577 million, up 17.5% from the same month in 2023.
• OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Prices will vary from neighbourhood to neighbourhood.

Inventory and New Listings

• The number of new listings saw an increase of 29.5% from February 2023. There were 1,539 new residential listings in February 2024. New listings were 10.3% above the five-year average and 3.3% below the 10-year average for the month of February.
• Active residential listings numbered 2,158 units on the market at the end of February 2024, a gain of 16.3% from February 2023. Active listings were 59.6% above the five-year average and 17.7% below the 10-year average for the month of February.
• Months of inventory numbered 2.4 at the end of February 2024, unchanged from February 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.

Conclusion

As Ottawa's spring market approaches, the recent surge in home sales presents both opportunities and challenges for buyers and sellers.

Buyers should prepare for a competitive landscape characterized by rising prices and limited affordability.

For sellers, increased market activity offers a favorable environment to showcase their properties, but pricing strategies must be carefully considered to attract buyers. 

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