Posted by: Karim Ali
Coffee with Karim
Ottawa Real Estate Market Q3 2024: Key Trends and Buyer Insights
As we close out the third quarter of 2024, the Ottawa real estate market continues to show resilience amidst fluctuating interest rates and growing inventory. Q3 saw steady activity, especially in the freehold and condominium markets, with several key trends emerging over the last few months.
Market Activity Overview
A total of 4,511 properties were sold across Ottawa in Q3 2024, with 5,631 listings hitting the market during the same period. The average listing price for all property types stood at $773,446, reflecting a steady but measured increase in property values.
Here’s a more detailed breakdown:
- Freehold properties: 2,112 were sold, with an average listing price of $889,683.
- Condos: 822 sold, with an average listing price of $471,451.
Inventory Levels and Days on Market
As the quarter progressed, inventory levels saw a slight increase, signaling a more balanced market. The months of inventory rose from 2.9 months in July to 3.4 months in September for residential properties. Similarly, condos saw their months of inventory increase from 3.1 months in July to 3.7 months in September, reflecting more available listings in the market.
Properties continued to move steadily, with median days on market (DOM) increasing slightly throughout Q3:
- July: 23 days (305 sales)
- August: 28 days (267 sales)
- September: 29 days (250 sales)
This indicates that while homes are still selling, buyers are taking a bit more time to make their decisions as they navigate interest rate fluctuations and growing inventory.
Sales Volume and New Listings
Total sales volume for residential properties in Q3 2024 reached $2.02 billion, with a gradual decline over the months:
- July: $745.6 million in sales
- August: $644.1 million
- September: $632.9 million
For condos, the sales volume also tapered slightly:
- July: $135.4 million
- August: $111.4 million
- September: $107.7 million
New listings varied across the months, with 1,947 new residential listings in July, followed by a dip to 1,640 listings in August, and climbing back up to 2,044 in September.
Condo Market Performance
The condo market in Ottawa remained steady throughout Q3 2024, though it experienced some slight fluctuations in pricing. The median sale price for condos in Q3 started at $402,250 in July, dipped to $400,000 in August, and finished at $409,000 in September. This trend suggests moderate price growth as the quarter progressed, with prices stabilizing towards the higher end in September.
In terms of inventory, the months of inventory for condos increased gradually from 3.1 months in July to 3.7 months in September, reflecting a growing supply of listings as more condos came on the market. Despite this increase in inventory, the market remained balanced, allowing condo prices to rise modestly by the end of the quarter.
The number of condo sales followed a similar pattern, with 305 sales in July, 267 in August, and 250 in September. Properties took slightly longer to sell, with the median days on market increasing from 23 days in July to 29 days in September, indicating that buyers are taking more time to make decisions in light of higher interest rates and market conditions.
Interest Rates and Market Outlook
Despite the continued pressure of higher interest rates, there is optimism as we approach the end of 2024. With potential rate cuts anticipated by year-end, buyer confidence is expected to rise, which could spur further activity in Q4. Additionally, the gradual increase in inventory suggests that buyers will have more options, leading to a potentially more balanced market heading into 2025.
In summary, while Q3 2024 saw some softening in sales volumes, Ottawa’s real estate market remained active. The slight uptick in inventory and longer selling times are typical in a market adjusting to interest rate changes, but the underlying demand remains steady. As we look forward to Q4, Ottawa continues to be a dynamic real estate market, with both buyers and sellers carefully navigating the evolving landscape.
Bonus tips
1
Be Strategic with Offers
With more inventory on the market, buyers have a little more leverage. Be mindful of not overbidding in this balanced market.
2
Every Home’s Unique
Whether you’re buying or selling, focus on the unique strengths of the home. For sellers, make sure to emphasize features like location, upgrades, or amenities. For buyers, look beyond market trends and focus on long-term value that fits your needs.
609
120