Hello and Welcome to our Ottawa Real Estate Market Stats Update!
In this edition of the December 2023 update, we will go over the trends that happened within the Ottawa Real Estate Market.
Positive Mometum in Home Sales
As 2023 drew to a close, the Ottawa real estate market exhibited resilience and signs of recovery, with December bringing a notable increase in home sales. Let’s delve into the numbers and insights provided by the Ottawa Real Estate Board (OREB) to gain a comprehensive understanding of the market dynamics.
In December 2023, a total of 565 homes changed hands through the MLS® System, marking a significant 7.6% uptick from the same month in 2022. Despite this positive momentum, home sales for the month still fell short, standing at 16% below the five-year average and 11.9% below the 10-year average.
For the entirety of 2023, the year-to-date figures revealed a total of 11,978 homes sold—an 11.0% decline from the robust activity witnessed in 2022.
Commentary from OREB President Curtis Fillier: “Ottawa’s resale market closed out the year in a steady, balanced state. This could be an early indication that consumer confidence is returning. We likely won’t see the full impact of rate stabilization until the second half of 2024, but December’s activity bodes well for a strong year ahead in Ottawa.”
Ken Dekker’s Perspective (OREB’s Past-President): “It hasn’t been the easiest market. And while we probably won’t return to the peak levels seen in 2022, Ottawa’s market is poised to recover any ground lost in the past year. Both buyers and sellers need extra patience right now, but solid opportunities are there.”
Price Trend and Market Values:
The MLS® Home Price Index (HPI), a reliable indicator of price trends, showcased the following benchmark prices for December 2023:
- Overall HPI composite benchmark: $623,900 (a modest gain of 2.7% from December 2022)
- Single-family homes: $704,900 (up 2.7% year-over-year)
- Townhouse/row unit: $481,100 (a notable 4.2% increase)
- Apartment: $417,200 (up 2.1% from the previous year)
Despite the challenges faced throughout the year, the average price of homes sold in December 2023 increased by 1.7% to $632,487. The comprehensive year-to-date average, however, settled at $667,794, indicating a 5.5% decline from the previous year.
The dollar value of all home sales in December 2023 was $357.3 million, reflecting a robust 9.4% increase from the same month in 2022.
As we turn the page on 2023, Ottawa’s real estate market paints a picture of recovery and cautious optimism. The market’s steady state in December, coupled with positive indicators, suggests a promising trajectory for the year ahead. Both buyers and sellers are urged to exercise patience, and as the market finds its equilibrium, opportunities are likely to emerge. Stay tuned for a dynamic and resilient Ottawa real estate landscape in 2024!