Ottawa Real Estate: May 2024 Insights and Findings
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In the May 2024 report, I dive into the latest trends and insights shaping both the overall and luxury segments of Ottawa's real estate market. Through examination and comparison of year-over-year data, I aim to offer valuable insights to buyers, sellers, and industry professionals navigating this dynamic and evolving market landscape. But let's first address recent announcements affecting the industry. This week, the Bank of Canada made a significant announcement regarding its policy rate, reducing its target for the overnight rate to 4.75%. This first decrease in 4 years, while widely expected, this adjustment is anticipated to take some time to filter down to the market over the summer months. However, it is expected to act as a catalyst to the upcoming summer and fall market, potentially influencing buyer sentiment and market activity.
May Performance Overview
In examining year-over-year data for May 2024 in the Ottawa real estate market, it's evident that negotiability varies significantly across different property types, reflecting the interplay between supply and demand dynamics. The average discount rates, representing buyers' negotiating power concerning listing prices, offer insights into market conditions. Detached homes, traditionally sought-after, exhibit a substantial increase in average discount rates compared to May 2023, indicating heightened negotiation flexibility at an increase of 149.1% to about a 1.2% listing discount. This surge suggests a more balanced market environment, potentially influenced by increased inventory levels. Conversely, row units and stacked condominiums show decreases in average discount rates year over year, indicating diminished negotiation leverage for buyers. Row units present a stark decline in average discounts, suggesting a market where sellers hold more control over pricing, while stacked condominiums display a notable decrease, albeit still at a considerable discount, indicating continued competitiveness in this segment. Semi-detached homes also depict a decrease in average discount rates, signalling a tightening market where buyers face reduced negotiating power compared to the previous year. Notably, the condominium apartment market stands out with no change in average discount rates compared to May 2023, potentially signalling a more favourable shift for sellers in this market. These nuanced variations underscore the importance of understanding the specific dynamics of each property type when navigating the Ottawa real estate market, especially concerning negotiation strategies.
Segment Highlights
In analyzing the year-over-year data for May 2024 in the Ottawa real estate market, significant trends emerge in both the condominium apartment and detached home segments, providing valuable insights into market dynamics.
In the condominium apartment market, total transactions experienced a notable decline of 22% compared to May 2023, indicating a shift in market activity. However, average prices were up 9.3% showing the most significant increase year over year compared to all product types. This suggests that despite a decrease in transaction volume, demand for condominium apartments remains high, potentially influenced by factors such as a limited for-sale offering in the marketplace.
Conversely, the detached home market displayed a different pattern. While total transactions also saw a decline compared to May 2023, average prices remained relatively stable. This indicates a more balanced market environment, where pricing remains consistent despite fluctuations in transaction volume. The detached home segment continues to attract buyers, albeit at a slightly reduced pace compared to the previous year.
Marketing time which represents the time required to market a property to the point of a firm buyer contract coming into place remains to be fairly consistent with an average of 13 days on market for freehold properties and 20 days on market for condominium properties.
Luxury Home Market
In the Ottawa luxury real estate market, year-over-year comparisons reveal intriguing trends in both transaction volume and average prices across different property types. Comparing May 2024 to May 2023, residential detached homes saw a notable decrease of 13.5% in total transactions, suggesting a slowdown in sales activity within this segment. Conversely, condominium apartment market transactions surged impressively by 200.0% during the same period, indicating substantial growth. However, these shifts in transaction volume coincide with contrasting changes in average prices. Year over year, the average price for detached homes declined significantly by 8.1%, reflecting potential adjustments in pricing dynamics. In contrast, the average price for condominium apartments soared by a substantial 57.9%, suggesting robust demand and possibly shifts in market preferences. In the analysis of condominiums, it's crucial to note the sample size discrepancy between May 2023 and May 2024. In May 2023, only one unit was available for review, whereas May 2024 saw an increase to three units. This increase in sample size can significantly impact the interpretation of trends and statistical measures, such as average price and transaction volume. Consequently, while the year-over-year comparison shows a substantial surge in total transactions (200.0%) and average price (57.9%) for condominium apartments, caution is advised when drawing direct comparisons due to the limited data availability in May 2023.
The year-over-year trend in the Luxury Price Threshold for Ottawa's real estate market indicates a notable shift. Comparing May 2024 to May 2023, the Luxury Price Threshold decreased by 0.6%, following a more substantial decline of 8.2% compared to April 2024. This downward trend suggests a potential price balancing in the upper tier market.
Top Neighbourhoods by Sales Volume for May 2024
Emerald Meadows/Trailwest
Volume: $34,820,100
Median Price: $692,500
Units Sold: 47
Central Stittsville
Volume: $25,049,300
Median Price: $742,500
Units Sold: 31
Riverside South
Volume: $23,296,888
Median Price: $657,450
Units Sold: 32
Top Neighbourhoods by Median Sale Price for May 2024
(3+ Unit Sale Districts Only)
Rockcliffe
Volume: $5,862,500
Median Price: $1,987,500
Units Sold: 3
Manotick Village & Estates
Volume: $4,635,000
Median Price: $1,765,000
Units Sold: 3
Ottawa West
Volume: $8,599,000
Median Price: $1,542,500
Units Sold: 6
© 2024 HAUS COLLECTION REALTY LIMITED. ALL WORLDWIDE RIGHTS RESERVED. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. THIS INFORMATION IS BASED ON DATA FROM THE OTTAWA REAL ESTATE BOARD AND INTERPRETED BY HAUS COLLECTION REALTY LIMITED. DATA HAS BEEN LIMITED TO SALES REPORTED WITHIN THE CITY OF OTTAWA BOUNDARY. IF YOUR PROPERTY IS CURRENTLY LISTED WITH ANOTHER REAL ESTATE BROKER, OR YOUR ARE UNDER A BUYER REPRESENTATION CONTRACT WITH ANOTHER REAL ESTATE BROKER, PLEASE DISREGARD THIS OFFER. IT IS NOT OUR INTENTION TO SOLICIT THE OFFERINGS OF OTHER REAL ESTATE BROKERS.
