Introduction

Are you considering buying or selling property in Ottawa in 2024? The real estate market is showing some intriguing trends that could impact your decision. From fluctuating sales to mortgage rates and a competitive rental market, here’s what you need to know.

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Table of Contents

1. Introduction

2. Current Market Overview

3. Mortgage and Affordability

4. Rental Market Dynamics

5. Conclusion

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Current Market Overview

1.1: Sales and Inventory Trends

In June 2024, Ottawa’s real estate market saw 1,439 home sales, marking a 13.2% decrease compared to June 2023, and a 6.9% drop from May 2024. Interestingly, active listings surged by 45.5% year-over-year to 3,585 units. This increase in inventory provides more options for buyers, contributing to a balanced market where neither buyers nor sellers dominate .

Despite the decline in sales, the market’s balance is maintained with a sales-to-new-listings ratio (SNLR) of 58%, indicating stability. This suggests that both buyers and sellers have equal opportunities, making it an ideal time for strategic decision-making .

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1.2: Home Price Adjustments

The average home price in Ottawa as of June 2024 is $647,700, showing a slight 0.5% decrease from the previous year. Single-family homes are priced at $734,300, townhouses at $501,500, and apartments at $420,800. This slight decline in prices may offer better entry points for buyers while still maintaining value for sellers.

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Mortgage and Affordability

2.1: Impact of Mortgage Rates

Mortgage rates significantly influence the Ottawa real estate market. The Bank of Canada’s recent 0.25% policy rate cut is expected to stimulate market activity, but high mortgage rates continue to challenge affordability. For each $100,000 of mortgage balance, monthly payments range from approximately $556 on the lowest fixed 5-year rate to $623 on the lowest adjustable 5-year rate.

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2.2: Affordability Challenges

Despite the rate cut, potential buyers must navigate high borrowing costs, which continue to make home purchases challenging. Staying informed about mortgage rate trends and preparing for potential fluctuations is crucial for anyone looking to buy in this market. The recent adjustments in mortgage rates might offer some relief, but overall affordability remains a concern.

“The increase in new listings indicates that sellers are more confident that properties are moving as market activity picks up.” - Curtis Fillier, OREB President 

Rental Market Dynamics

3.1: Competitive Rental Landscape

The rental market in Ottawa remains competitive, with strong demand and low vacancy rates. As of June 2024, the average rent for a bachelor apartment is $1,596, a one-bedroom apartment is $1,989, and a two-bedroom apartment is $2,486. These figures represent a 2.0% year-over-year increase for two-bedroom units, highlighting the ongoing demand for rental properties.

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3.2: Low Vacancy Rates

The overall vacancy rate is particularly low in the condominium market, where it stands at 0.4%. This low vacancy rate, coupled with increasing rents, underscores the strong rental demand despite an increase in rental supply. Prospective renters should be prepared for competitive conditions and potentially higher rental costs  .

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Navigating the Ottawa real estate market in 2024 requires strategic planning for both buyers and sellers. The market is showing signs of balance, with increased inventory and slight adjustments in home prices offering opportunities for both parties. However, affordability remains a challenge, necessitating careful financial planning and market analysis.

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Call to Action

Let’s discover how you can benefit from the golden hour of real estate investment and make informed decisions for a prosperous future. Reach out today to start your journey towards successful investments.

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