Ottawa’s Real Estate Market: What October 2024 Tells Us About Competition and Opportunities

Oct 2

The real estate market in Ottawa has experienced some significant shifts as of October 2024. While housing prices have seen a modest increase, the growing inventory of homes is creating more competition among sellers, with longer selling times becoming the norm. Here’s an in-depth look at what’s happening in the market and what it means for both buyers and sellers.

Housing Prices: A Steady Climb

Compared to September last year, the average house price in Ottawa has risen from $623,000 to $649,000. While this 4.2% increase may suggest continued demand and growth, the picture is more complex. The steady climb in prices is likely influenced by inflation, rising construction costs, and continued demand in certain neighbourhoods. However, this increase doesn’t quite align with the other market changes we’re seeing.

For sellers, the price rise is a positive, as the market remains relatively stable despite increased competition. But for buyers, especially investors, this could be a key opportunity—particularly since prices are still lower than some of the peaks we saw during the pandemic.

Increased Competition: More Homes on the Market

One of the most striking statistics this October is the increase in the number of homes for sale. Last year, the market had 3,157 homes available. Today, that number has jumped to 3,749—an 18% increase in available inventory.

This surge in listings is great news for buyers, offering them far more choice compared to last year. However, it’s a different story for sellers. With more homes competing for attention, properties are taking longer to sell, and sellers may need to consider price adjustments or offer more incentives to stand out.

Slower Sales Growth: Homes Are Taking Longer to Sell

When we examine the number of homes sold, we’ve only seen a 10% increase in sales, from 956 last year to 1,065 today. This relatively small increase compared to the 18% rise in listings means homes are spending more time on the market. Sellers who may have expected a quick transaction are now finding that the market’s shift means longer wait times and potentially more negotiations.

At New Purveyors, we’ve observed that homes which would have sold within two weeks last year are now staying on the market for closer to a month, sometimes longer. With buyers feeling less pressure due to the increased number of options, they’re taking their time and being more selective. For sellers, this means patience and a clear strategy are more important than ever.

What Does This Mean for Buyers?

While increased competition might seem challenging for sellers, it opens up unique opportunities for buyers, particularly investors looking to expand their property portfolios. With more homes to choose from and slightly longer selling times, buyers have more bargaining power.

Additionally, the higher inventory and slower sales growth make this a great time to consider purchasing an investment property. For those looking to enter the Ottawa market or expand their portfolio, now could be an opportune moment to negotiate favourable terms, secure lower interest rates, or explore options like multi-unit properties that offer rental income.

The Challenge of Selling

For sellers, today’s market conditions are more complex. While average prices are up slightly, the increased competition means that pricing strategy, marketing, and home preparation are critical. At New Purveyors, we’ve been helping our clients understand that homes need to stand out more than ever before.

One key strategy is to prepare for negotiations. With buyers having more options, we’re seeing a rise in conditions like financing clauses or inspection requests. Sellers need to remain flexible, and working with an experienced agent is crucial to ensuring the best possible outcome.

Additionally, homes that are priced accurately from the start are more likely to sell within a reasonable timeframe. Pricing too high in hopes of capturing the peak of the market could backfire, as buyers are more cautious and taking their time.

Offloading Your Property: Patience Is Key

If you’re thinking of selling, it’s important to be prepared for the reality that offloading your property may not happen overnight. The increased competition and longer selling times mean patience is essential. However, with the right strategy, it’s still possible to sell your home at a fair price.

It’s a Buyer’s Market—But Opportunities Exist for Everyone

The Ottawa real estate market in October 2024 tells a story of two sides: buyers are in a stronger position than they’ve been in recent years, with more inventory and less urgency to make quick decisions. Sellers, on the other hand, are facing a more competitive landscape with longer selling times.

However, for both buyers and sellers, working with a knowledgeable and experienced real estate team is key to navigating this changing market. Whether you’re looking to purchase an investment property or sell your current home, the team at New Purveyors, brokered by RE/MAX Hallmark, is here to provide expert advice and support.

The current market conditions may seem challenging, but with the right strategy, there are still plenty of opportunities for success.