Ottawa’s housing market experienced a surge in activity in July, with 1,241 homes sold through the MLS system, according to the Ottawa Real Estate Board (OREB). This represents a 13.6% increase from July 2023, indicating a robust sales month.
Despite this increase, home sales were still 7.1% below the five-year average and 8.8% below the 10-year average for July. Year-to-date, total home sales reached 8,349 units in July, a 5.5% increase compared to the same period in 2023.
Encouraging market activity but Ottawa needs supply-side action
“As the market pace usually slows in the summer, July’s activity is promising and could indicate further improvements,” says OREB president Curtis Fillier. “Buyer confidence is gradually increasing while sellers are adding new listings consistently. However, the conversion into transactions depends on the availability of properties and price points as supply and affordability challenges persist in our communities.”
“It’s early to say, but recent policy changes could provide a boost,” Fillier adds. “The Bank of Canada’s two consecutive interest rate cuts and the federal government’s introduction of 30-year amortization periods for first-time homebuyers purchasing newly built homes are expected to assist some buyers. Nevertheless, these are demand-side measures, and Ottawa, like many other cities, requires action on the supply side.”
Housing supply growth challenges and OREB’s response
The Bank of Canada’s Monetary Policy Report highlighted ongoing hurdles in housing supply growth, citing municipal zoning restrictions and high development fees as major obstacles. Recent data from the Ontario government reveals that Ottawa has only constructed 1,593 homes out of its 12,583 target for 2024.
In response, OREB and its member realtors are advocating for solutions to the housing crisis, including permitting four units per lot and reducing steep development fees.
Source: OREB
July prices
The overall MLS Home Price Index (HPI) composite benchmark price was $648,900 in July, a slight increase of 0.1% from July 2023.
The benchmark price for single-family homes was $734,700, down 0.1% year-over-year. Townhouse/row units saw a 3.4% increase, with a benchmark price of $506,100. The benchmark apartment price was $422,800, a 0.9% decrease from the previous year.
The average price of homes sold in July 2024 was $679,610, down 2.1% from July 2023. Year-to-date, the average price stood at $681,082, up 1.0% from last year.
July inventory & new listings
July 2024 also saw a 17.1% increase in new residential listings, with 2,231 new listings hitting the market. This figure was 6.3% above the five-year average and 6.9% above the 10-year average for July.
Active residential listings reached 3,480 units by the end of July, marking a 37% increase from the previous year. This inventory level was 50.6% above the five-year average but 2.3% below the 10-year average for July. The months of inventory rose to 2.8 months in July, up from 2.3 months during the same time in 2023.
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