Best
5-Year Fixed
Mortgage Rates

Ottawa Housing Market Report

WOWA Trusted and Transparent
Market Report Summary for February 2024
Updated March 7th, 2024
  • The average home sale price in Ottawa’s housing market increased by 3.1% year-over-year to $651,340 in February 2024, an increase of 3.1% from last month.
  • The composite benchmark price of a home in Ottawa was $628,500, increasing by 2.8% compared to February 2023 and by 1.1% from last month.
  • Average single-family house prices reached $796,167, increasing by 0.5% yearly and 3.3% monthly.
  • Average townhouse prices were $538,745, an increase of 1.6% compared with February 2023 and a decrease of 0.6% from last month.
  • Average apartment prices were $429,410, an increase of 7.6% compared with February 2023 and 3.6% from the previous month.
  • March 19, 2024 Update: Today’s Lowest mortgage rate in Ottawa is 4.94% for 5-Year Fixed

Ottawa Housing Market Overview

Data for March 2024
Avg. Sold Price:$651,340
All Property Types:$651,340
Single Family:$796,167
Townhouse:$538,745
Apartment:$429,410
Transactions (Buy/Sell):886
All Property Types:886
Single Family:453
Townhouse:288
Apartment:140
Best 5-Year Fixed Mortgage Rates in Ottawa
Select: Term
Fixed
Variable
Ottawa Market Condition
Balanced
This Month’s SNLR: 58%
An SNLR between 40% and 60% indicates a balanced market.

The market activity in Ottawa’s housing market continued to warm up in February 2024, with both sales and new listings showing year-over-year and month-over-month growth. The sales are still below the five-year average, but the new listings are above the five-year average. This hints at an improved market balance compared to the pandemic years that saw inventory levels drop to half a month due to new listings coming onto the market much slower than the pace of the sales.

Home Prices

The average home price in Ottawa increased by 3.1% on a monthly basis to a price of $651,340 in February 2024. This price is an increase of 3.1% compared to the average price in February 2023. The average home price in Ottawa has increased by approximately 50% over the past five years.

Meanwhile, the composite benchmark price of $628,500 in February 2024 is a 2.8% increase compared to last year. The benchmark price had been on a month-over-month downtrend since June 2023, but the trend ended this month as the benchmark price grew by 1.1% compared to January.

Also, the median price often gives a more accurate sense of the market prices, representing the midpoint and not skewed due to the extremes. The median price of homes sold in Ottawa’s housing market in February 2024 was $616,850, increasing by 3% from the previous year and by 2.8% from last month.

The sales-to-list price ratio was 98.3%, which means that homes sold 1.7% below the listed price on average.

wahi map

Sales and Inventory

The 886 sales in February 2024 were 3.6% higher than in February 2023. The sales increased by 41% on a month-on-month basis. The sales were 13.8% below the five-year average for the month of February.

There were 1,539 new listings on the Ottawa housing market in February 2024, a 21% increase from the previous month and 29.5% higher than in February 2023. The month's sales-to-new listings ratio (SLNR) was 58%. An SLNR of 40% - 60% typically indicates that the market is balanced and doesn’t tip in favour of sellers or buyers.

The market had 2,158 active listings, having increased by 173% compared to two years ago. There were 2.4 months of inventory at the end of February 2024, significantly higher than 0.6 months of inventory two years ago.

Property Types’ Analysis

Looking at the different property types in Ottawa,

  • Single-family homes had a median selling price of $739,800 in February 2024, remaining unchanged from last year and a 5.7% increase from last month.

  • Townhouses sold for a median price of $552,200 in February 2024, an increase of 2.3% year-over-year and a decrease of 0.5% from last month.

  • The average price for apartments in February 2024 was $375,000, remaining unchanged compared to the previous month and increasing by 10.3% from last year.

Reasoning

Mortgage rates determine the cost of borrowing, which directly impacts home affordability. The rates today are significantly higher than two years ago, making it difficult for homebuyers to pass the mortgage stress test. The recent mortgage rate forecasts suggest that the rates will start declining by mid-2024, which might encourage more buyers to make a move. However, even after the rate cuts, the mortgage rates will likely remain quite high for most part of 2024, and affordability will still remain a concern.

Comparison

Ottawa’s housing market is much more affordable than Vancouver’s housing market, and Toronto’s housing market, which have average home prices of over $1M. It is also significantly cheaper than other markets in Ontario, such as Hamilton’s housing market, Mississauga's housing market and Brampton's housing market. Looking at cities outside Ontario and B.C., Ottawa’s housing market is slightly more expensive than the Montreal housing market and the Calgary housing market. As most homes in Ottawa are well below the $1 million mark, they are still eligible for a minimum down payment of 5% to 10% with CMHC insurance, allowing more buyers to compete for the inventory.

Home Prices in Ottawa

Ottawa Housing Market Statistics for All Property Types in February 2024

Average Sold Price and MLS HPI Benchmark Price

Total Transactions


Best 5-Year Fixed Mortgage Rates in Ottawa
Mortgage Term:
Fixed
Variable

Glossary and Definitions

MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.

MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.

Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:

  • Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
  • Liability for any property damage or bodily injury suffered on strata property
  • Any fixtures that are part of the "standard unit" or original construction of each unit

Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.

Property types

Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.

Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.

Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.

Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.

Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.

Property Classes

Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.

Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.

Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.

Housing Markets Across Canada

Data sourced from the Ottawa Real Estate Board (OREB) and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.