The Bank of Canada announced on October 23rd that they will cut their policy interest rate by 50 bps which brings the current overnight rate to 3.75%. The Canadian economy continues to show signs of weakness and recent inflation figures dipped to 1.6% last month, below the 2% target. This has prompted the Bank of Canada to cut rates further to avoid inflation further decelerating and potentially risking deflation.

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The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totalled 1,047 units in September 2024. This was an 11.4% increase from September 2023.

Home sales were 17.4% below the five-year average and 15.4% below the 10-year average for the month of September.

On a year-to-date basis, home sales totalled 10,485 units in September 2024 — an increase of 6.4% from the same period in 2023.

“As we navigate a shifting housing market, Ottawa’s fall outlook is healthy,” says the OREB President. “Activity is robust with an uptick in sales and prices remaining steady. Meanwhile, both buyers and sellers are rethinking their purchasing power amidst news about additional interest rate cuts on the horizon, longer amortizations, and increased price caps for insured mortgages."

“There have been encouraging policy developments recently that will stimulate demand. But Ottawa’s market does not typically have demand problems — we have chronic supply issues. We’re not building enough homes in the city, and we’re not building enough of the right homes to address the ‘missing middle.’”

The Canada Mortgage and Housing Corporation (CMHC) recently reported that Ottawa's “population-adjusted construction is at its lowest level in nearly 10 years.” A City of Ottawa progress report shows that Ottawa is only at 22 per cent of its annual housing target at the end of August.

By the Numbers – Prices:

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.

• The overall MLS® HPI composite benchmark price was $642,800 in September 2024, an increase of 0.2% from September 2023.

  • The benchmark price for single-family homes was $729,000, up 0.5% on a year-over-year basis in September.

  • By comparison, the benchmark price for a townhouse/row unit was $500,000, down 1.7% compared to a year earlier.

  • The benchmark apartment price was $414,200, down 1.3% from year-ago levels.

• The average price of homes sold in September 2024 was $685,551 increasing 1.4% from September 2023. The more comprehensive year-to-date average price was $679,082, increasing by 0.9% from September 2023.

• The dollar volume of all home sales in September 2024 was $717.7 million, up 12.9% from September 2023.

OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Prices will vary from neighbourhood to neighbourhood.

By the Numbers – Inventory and New Listings:

• The number of new listings saw an increase of 3.9% from September 2023. There were 2,343 new residential listings in September 2024. New listings were 4.7% above the five-year average and 11.6% above the 10-year average for the month of September.

• Active residential listings numbered 3,529 units on the market at the end of September 2024, a gain of 16.9% from September 2023. Active listings were 43.3% above the five-year average and 4.6% above the 10-year average for the month of September.

• Months of inventory numbered 3.4 at the end of September 2024, up from 3.2 in September 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Courtesy of the Ottawa Real Estate Board

We are excited to welcome Howard Marling, a seasoned Realtor with over 20 years of experience in the Ottawa real estate market, to the TRU Realty family!

Since 2003, Howard has been helping clients navigate the complexities of real estate with a unique blend of expertise and personalized service. What sets Howard apart is his extensive hands-on experience with construction and home renovations. Having built a bungalow and renovated three houses, Howard brings invaluable insights to clients looking to buy a fixer-upper or undertake home improvement projects. He knows what’s worth tackling yourself, what’s better left to the pros, and what to avoid altogether.

Howard’s background in Ottawa’s tech industry, having worked with companies like Mitel, BNR, Nortel, Newbridge, Alcatel, and Solantro, also adds a cutting-edge perspective to his real estate practice. His work in designing and installing solar power systems, including on his own home, makes him an incredible resource for clients interested in sustainable living. Whether you're considering buying a property with a solar system or looking to add one to your future home, Howard’s experience will guide you every step of the way.

Beyond his professional expertise, Howard understands the real-world challenges of buying and selling a home firsthand. Before becoming a Realtor, he successfully sold two of his own properties, giving him a unique understanding of the process from a seller’s perspective.

At TRU Realty, we are committed to providing the highest level of service to our clients, and Howard’s dedication to hard work, transparency, and client satisfaction fits perfectly with our core values. His wealth of knowledge and personalized approach will be a tremendous asset to both our team and clients.

Please join us in welcoming Howard Marling to TRU Realty! Whether you're buying, selling, or just exploring your options, Howard is ready to assist.

Welcome aboard, Howard! We look forward to seeing you thrive and continue to define professionalism in real estate with us.