Hello and Welcome to our Ottawa Real Estate Market Stats Update!
In this edition of the February 2024 update, we will go over the trends that happened within the Ottawa Real Estate Market.
In the ever-evolving landscape of real estae, understanding market dynamics is essential for both buyers ans sellers. The Ottawa Real Estate Board (OREB) recently releases its February 2024 market report, shedding light on the trends shaping the local housing market. Let’s delve into the numbers and insights provided by OREB.
Rising Sales Amid Affordability Challenges
According to OREB’s data, the number of homes sold through the Multiple Listing Services (MLS) totaled 886 units in February 2024, marking a notable 15.2% increase from the same period in 2023. Despite this surge in sales activity, home sales. remained 13.8% below the five-year average and 5.7% below the ten year average in February.
OREB President Curtis Fillier acknowledges the robust market activity but emphasizes the persistent challenge of affordability.
He notes that while metrics indicate increased activity from both buyers and sellers, many individuals are still sidelined due to the rising prices making homeownership out of reach for numerous residents.
A report from the Municipal Property Assessment Corporation (MPAC) further underscores the affordability issue, highlighting the scarcity of communities with homes priced below $500,000. Over the past decade the proportion of residential properties with values under $500,000 has dwindled significantly, reflecting the pressing need for affordable housing solutions in Ottawa.
Advocating for Solution
To address the affordability crisis, Fillier advocates for impactful measures such as permitting four residential units on property lots and eliminating exclusionary zoning practices. These initiatives aim to bridge the gap in housing supply, particularly in the ‘missing middle’ segment, which encompasses moderately priced housing options that are currently lacking in the market.
Price trends and Inventory
The MLS Home Price Index provides comprehensive view of price trends, showing a 2.8% increase in the overall benchmark price from February 2023, reaching $628,500. Single-family homes saw a 3.1% year over year increase, with a benchmark price of $708,500, while townhouse/row house unites and apartment also experienced modest gains.
In terms on inventory, new listings surged by 29.5% compared to February 2023, with 1,539 new residential listing hitting the market. However, active residential listings increased by 16.3% year-over-year, with 2,158 units available by then end of February 2024.
Despite the uptick in new listings, months of inventory remained steady at 2.4, indicating a balanced market where demand and supply are relatively aligned.
OREB emphasizes that while the average sale price can provide insights into overall market trends, it may not accurately reflect specific property values due to variations across neighbourhoods.
Final Thoughts
As Ottawa’s real estate market continues to evolve, stakeholders must navigate the challenges posed by affordability constraints and supply shortages. While February 2024 saw increased sales activity and modest price gains, addressing the root causes of affordability remains crucial for ensuring equitable access to housing.
OREB’s advocacy efforts and market insihts play a pivotal role in shaping policies and initiatices aimed at fostering a more inclusive and sustainble housing market in Ottawa. As the year progresses, continued monitoring of market trends and collaborative efforts from industry stakeholders will be essential in driving positive outcomes for both buyers and sellers alike.