Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for December 2024 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what is sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.
Ottawa Real Estate Market Update: December 2024 Closes the Year with Optimism
As we wrapped up 2024, Ottawa’s real estate market showed promising signs of growth and optimism for the year ahead. December marked an encouraging end to a year filled with evolving market conditions, as both sales activity and inventory saw notable changes. Here’s a deep dive into the latest numbers and trends shaping Ottawa’s housing market.
Sales Snapshot for December 2024
The Ottawa Real Estate Board (OREB) reported a total of 613 homes sold through the MLS® System in December 2024, marking a 7.9% increase compared to December 2023. While sales were still 6.8% below the five-year average and 2.7% below the 10-year average, the uptick in activity signals cautious optimism among buyers and sellers alike.
On a year-to-date basis, 13,526 homes were sold in 2024, a significant 11.8% increase from the previous year. These gains highlight a recovering market buoyed by improving conditions in the latter half of the year.
Home Prices on the Rise
Home prices continued their steady climb in December 2024, driven by strong demand across various housing types.
The MLS® Home Price Index (HPI) composite benchmark price reached $645,800, up 3.8% year-over-year.
Single-family homes saw a benchmark price of $729,300, a 3.7% increase from December 2023.
Townhouses and row units experienced the largest growth, with a benchmark price of $533,200, up a remarkable 11.3% year-over-year.
Apartment prices, however, saw a slight decline, with the benchmark price at $404,400, down 2.5% compared to last year.
The average price of homes sold in December stood at $663,781, representing a 4.4% increase from December 2023. On a year-to-date basis, the average home price for 2024 was $679,067, up 1.3% from 2023.
Active Listings and Inventory Levels
December brought an influx of new and active listings, reflecting growing confidence among sellers:
603 new residential listings were added to the market, a 13.6% increase from December 2023.
Active residential listings rose dramatically, reaching 3,216 units, a 58.7% increase from the same month last year. This also represented a 90% rise above the five-year average and 51.4% above the 10-year average.
Months of inventory stood at 5.2 months, up from 3.6 months in December 2023, indicating improved supply conditions.
Year-to-Date Insights
Looking back on 2024, the year brought significant changes in sales activity, inventory, and listing trends:
Sales Activity: With 13,526 units sold, sales rebounded strongly from 2023, representing an 11.8% increase. While still below peak years like 2021, the market demonstrated resilience.
New Listings: A total of 25,100 new listings were added throughout the year, surpassing the previous year’s figure of 21,263 and closely aligning with historical averages.
Inventory: The number of months of inventory increased to 3.0 months, a substantial recovery from the low levels seen in 2020 and 2021.
Market Drivers and Trends
The latter half of 2024 saw improving conditions for buyers and sellers, driven by several key factors:
Falling Interest Rates: Consecutive rate cuts provided relief for buyers, improving affordability and cash flow for those with variable-rate mortgages and HELOCs.
Higher Insured Mortgage Limits: These changes opened doors for more buyers to enter the market.
Extended Amortizations: These measures eased monthly payment burdens for buyers, encouraging activity.
However, challenges persist. Affordability and limited supply remain significant hurdles for many buyers, particularly in the search for affordable housing options that meet current demands. OREB President Paul Czan emphasized the importance of increasing supply to sustain market momentum, noting that while conditions are improving, much work remains.
Looking Ahead: Optimism for 2025
The Ottawa real estate market is poised for increased activity as we head into 2025. While uncertainties remain, including political shifts and affordability issues, there’s a growing sense of optimism. Sellers appear confident, with many anticipating improved buyer activity in the coming months. Meanwhile, buyers are watching closely as the market continues to adjust to new conditions.
With an increase in both sales activity and inventory, coupled with stabilizing prices, Ottawa’s housing market offers a cautiously optimistic outlook for the year ahead.
Key December 2024 Market Stats at a Glance
613 properties sold
$729,300: Benchmark price for single-family homes
$404,400: Benchmark price for apartments
34 days on market (average)
3,216 active listings
603 new listings
For more detailed statistics and insights, visit the Ottawa Real Estate Board at www.oreb.ca.
This year-end analysis underscores Ottawa’s resilience and adaptability in a fluctuating real estate environment. Stay tuned for more updates as we navigate the evolving market landscape in 2025!
Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.
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