Ottawa Real Estate Market Recap: 2024 in Review

Jan 10

As 2024 came to a close, Ottawa’s real estate market demonstrated remarkable resilience and momentum, setting the stage for what promises to be an exciting 2025. Let’s take a closer look at some of the key trends and insights that defined the year and what they mean for buyers, sellers, and investors.

Sales Activity on the Rise

Sales activity increased by an impressive 11.8% compared to 2023, signaling renewed confidence in the market. On a year-to-date basis, 13,526 homes were sold, a significant gain over the previous year. However, December’s activity tells a slightly more nuanced story. While robust overall, home sales for the month were 6.8% below the five-year average and 2.7% below the 10-year average. These figures highlight how seasonal and market dynamics can influence activity, even in a recovering market.

Resale Inventory Builds While Prices Hold Steady

In 2024, buyers benefitted from an increase in inventory, offering more options to choose from. This gradual build-up of supply helped temper significant price fluctuations, resulting in home prices remaining relatively stable, with a modest 1.3% increase year over year.

Property Type Breakdown

Detached Homes: The average price reached $816,489, reflecting a modest 0.4% increase compared to 2023. Median days to sell increased by 2 days, suggesting a slightly slower but steady demand.
Townhomes: These properties experienced a stronger price increase, with the average price rising to $571,498 (+1.4%). Median days to sell also rose by 3 days, showing resilience in this segment of the market.
Apartments: The average sale price of apartments dipped slightly to $433,733 (-0.4%), with median days to sell increasing by 5 days. This indicates that while demand softened slightly, apartments remain a viable option for many buyers.

Interest Rates and Affordability

One of the most influential factors shaping the 2024 market was the Bank of Canada’s decision to lower interest rates. With rates falling by nearly 2% over the course of the year, affordability improved for many buyers. Lower rates not only reduced monthly mortgage payments but also boosted confidence among those entering the market or considering upgrading and bringing relief to those with Variable mortgages.

The Impact of Higher Insured Mortgages and Extended Amortizations

Government policies also played a role in shaping the market. The prevalence of higher insured mortgages and the availability of extended amortization periods provided additional flexibility for buyers navigating higher price points. These measures offered a lifeline to first-time homebuyers and those looking to manage rising costs, contributing to the overall stability of the market.

Looking Ahead to 2025

With a strong close to the year, all signs point to a confident and robust real estate market in 2025. Buyers are likely to see even more opportunities as inventory levels continue to improve. Sellers will benefit from the steady demand driven by favorable interest rates and increased buyer confidence. Investors, too, may find this an opportune time to expand their portfolios, as stabilized prices and resilient rental markets create attractive conditions.

Here are some key predictions for 2025:

Increased Buyer Activity: With interest rates remaining low and more inventory available, expect heightened activity in the spring and summer markets.
Steady Price Growth: While dramatic price surges are unlikely, moderate growth is anticipated across most property types, driven by demand and market confidence. I would expect to see a 3-5% growth by year end.
Continued Focus on Affordability: Extended amortization periods and tailored mortgage products will continue to support first-time buyers and those upgrading their homes.
Opportunities in Multi-Family Properties: The growing demand for rental units will make multi-family homes an attractive investment option.

Whether you’re considering buying your first home, upgrading, selling, or investing, 2025 offers a wealth of opportunities. Let’s work together to create a plan tailored to your goals. Contact me today for a free consultation.