Real Estate Market Report: March 2024 in Ottawa

Apr 4

Unpacking Ottawa's March Real Estate Momentum: March Market Update with Charlene Weber

Ottawa's real estate scene saw continued action in March, highlighting notable statistics across each home category. These insights not only provide valuable information about past performance but also offer clues about the market's direction in the coming months. As a buyer or a seller it is key to understand what these statistics mean for you, so let's break it down.

Total Residential Sale: A 10% Increase

In March, total sales reached 1,165 transactions, showing a 10% uptick from the previous year. This increase indicates a lively and evolving market environment. It suggests a positive trend in buyer and seller activity, reflecting a healthy and dynamic real estate market in Ottawa. This time last year buyers especially were taking a more conservative approach, waiting for interest rates to soften while Sellers weighed the options of selling their home in a slower market or waiting it out. Now that buyers are more comfortable with interest rates we are seeing this reflected in a decrease in the months of inventory across all three property types.

Residential Market Insights:

Taking a closer look at residential properties, which recorded an average sales price of $659,828, we saw a 3.2% increase from March 2023. Notably, with 2.5 months of inventory, the market leans towards a seller's advantage, reflecting a dynamic where demand exceeds supply.

Single Family Homes:

Notable shifts have occurred in the single-family home sector, with an uptick in average sales price and a decrease in months of inventory compared to the previous month. With an average price of $812,203 up 3.4% over March 2023, single-family homes retain their appeal to buyers as highlighted in the increasing average sales price and number of total sales being the highest amongst the categories in March. For sellers this is important to note as more listings means more competition and pricing and listing strategy become important. While there is movement in the market your pricing and listing strategy should be looking at how to differentiate your home from the rest and capture buyers interest.

Townhomes and Row Units:

While townhomes and row units may have experienced more modest growth in average sales price—registering a 1.3% increase—they remain a segment worthy of attention. The noteworthy decline in the months of inventory to 1.8 indicates a tightening of supply, hinting at potential price appreciation on the horizon. As a buyer, if you're looking at this category there are opportunities to be had now. From a seller’s perspective, there is a clear trend towards an increasing demand creating a favourable environment for an increasing average sales price.

Condo Apartments:

Condo apartments continued to outperform the other home categories, showing a 6.1% increase in average sales price, $434,418. Falling under the most affordable category with high demand and slowing supply, the statistics indicate prices will continue to rise if inventory levels remain low. For buyers especially if you are looking at condos, especially under $400,000 now is the time to get serious before getting priced out of the condo market.

In wrapping up our dive into Ottawa's real estate market for March, it's clear that the market remained in motion and showcased potential. Insights into specific property types, like the 3.2% increase in average sales price for single-family homes and a 6.1% rise in condo apartments, highlight the diverse opportunities awaiting both buyers and sellers. The delicate balance between supply and demand, as seen in the fluctuations of months of inventory across various segments, offers valuable insights for navigating the evolving landscape. Armed with this knowledge, consumers can confidently capitalize on opportunities and contribute to the continued vibrancy of Ottawa's real estate market.