Ottawa Housing Market Report
- The average home sale price in Ottawa’s housing market increased 5.4% year-over-year and decreased 0.2% month-over-month to $667,098 in November 2024.
- The composite benchmark price of a home in Ottawa was $636,700, increasing by 1.5% compared to November 2023 and decreasing by 0.4% from last month.
- The average single-family house price reached $786,626, decreasing by 1.9% monthly and increasing by 4.2% annually.
- The average townhouse price was $582,892, up 7.3% from last month and increasing 11% from last year.
- The average apartment price was $422,570, down 1% from the previous month and 4.8% from last year.
- December 21, 2024 Update: Today’s Lowest mortgage rate in Ottawa is 4.09% for 5-Year Fixed
Ottawa Housing Market Overview
Ottawa Housing Market: Price Movements for November 2024
Benchmark Home Price | $636,700 | -0.4% 1-Month Change | +1.5% 1-Year Change |
Average Home Price | $667,098 | -0.2% 1-Month Change | +5.4% 1-Year Change |
Median Home Price | $625,000 | 0% 1-Month Change | +6.8% 1-Year Change |
In November 2024, activity in Ottawa’s housing market appears to be slowing again, with sales and new listings dropping by 10.2% and 35.3%, respectively, compared to last month. However, sales were still significantly higher than in November last year. Some buyers are holding off, anticipating further declines in mortgage rates, while many sellers are delaying listing their properties until the market gains momentum again. With the winter months and holiday season ahead, we may witness a further decline in market activity, which is a typical seasonal effect around this time of the year. Home prices have also surged annually but declined monthly.
Home Prices
In November 2024, the average home price in Ottawa’s housing market remained stable, decreasing by a minor 0.2% to $667,098. The price reflects an annual increase of 5.4%. It is also noteworthy that the average home price in Ottawa has increased by about 41% in the past five years.
Meanwhile, the composite benchmark price of $636,700 in November 2024 was 1.5% higher than last year and 0.4% lower than in October. A benchmark price is the price of a typical property in the city; therefore, changes in the benchmark price are often a better indicator of where home prices are headed compared to the average price. Ottawa’s benchmark home price has declined for four consecutive months now.
Sales and Inventory
The 1,059 sales in November 2024 were 46.3% higher than in November 2023 and decreased by 10.2% month-on-month. The sales were slightly below the historical averages for the month of November. From the long-term perspective, the sales were only 0.5% below the 10-year average for the month of November, indicating that sales are returning to normalcy after an extended period of low activity.
There were 1,352 new listings on the Ottawa housing market in November 2024, representing a sharp 35.3% decline from last month and a 7.3% decline from last November. With a sales-to-new listings ratio (SNLR) of 78% in November 2024, Ottawa’s housing market was a seller’s market. An SNLR of 40% - 60% typically indicates that the market is balanced and doesn’t tip in favour of sellers or buyers. If the SNLR exceeds 60%, the market is considered to favour sellers.
The market had 4,036 active listings, a 38.2% increase compared to last November. At the end of November 2024, there were 3.8 months of inventory.
Additional Ratios
The sales to list price ratio in November 2024 was 97.8, indicating that homes sold 2.2% below the listing price on average.
The median days on the market, meaning the median time for which listed properties remained on the market, was 26 days.
Property Types’ Analysis
Looking at the different property types in Ottawa,
Single-family homes had a benchmark price of $722,400 in November 2024, up by 2.1% from last year and down by 0.3% from last month.
Townhouses sold for a benchmark price of $491,500, an increase of 0.3% year over year and a decrease of 3% month over month.
The benchmark price for apartments in November 2024 was $406,200, down by 3.7% from last year and by 0.3% from last month.
Reasoning
Mortgage rates determine the cost of borrowing, which directly impacts home affordability. Home sales this November were significantly higher than last year, possibly due to the recent rate cuts by the Bank of Canada (BoC). Despite the rate cuts, the current mortgage rates are higher compared to the pandemic years, making it difficult for some homebuyers to pass the mortgage stress test. They are likely to make a move when mortgage rates drop further.
Mortgage rate forecasts suggest there will be more rate cuts in the coming months, prompting some buyers to wait and see. Meanwhile, mortgage rules are set to change in December. With the changes in place, properties of up to $1.5M in value will be eligible for mortgage insurance and will require a much lower downpayment than they do now. This may attract more buyers to the market.
On the other hand, many sellers are mindful of the upcoming rate cuts and changes in mortgage rules and are holding off on listing their properties, aiming to capitalize on a more favourable market and maximize profits.
Comparison
Ottawa’s housing market is much more affordable than Vancouver’s housing market and Toronto’s housing market, which had average home prices of $1,276,716 and $1,106,050 in comparison to Ottawa’s average price of $667,098 in November 2024. It is also significantly cheaper than other markets in Ontario, such as Mississauga’s housing market, Brampton’s housing market and Hamilton’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 November 2024
Average Sold Price and MLS HPI Benchmark Price
Total Transactions
Property Type Distribution
Market Overview for Single Family Homes in November 2024
Average Sold Price
Transactions
Market Overview for Townhouses in November 2024
Average Sold Price
Transactions
Market Overview for Apartments in November 2024
Average Sold Price
Transactions
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.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.
- The trademarks MLS®, Multiple Listing Service®, and associated logos are owned by CREA and identify services provided by its members.