Ottawa Real Estate: Second Quarter 2024 Insights and Findings
As the real estate market continues to evolve, the 2nd Quarter of 2024 has brought noteworthy trends and shifts across various property types, influenced in part by the Bank of Canada's rate cut this quarter. This quarters overview will attempt to look at how different segments have performed over the past 3 months, highlighting key metrics affecting the market.
Market Overview
In the 2nd Quarter of 2024, Apartment Condos outperformed the broader market in terms of pricing, with the average price up 2.3% year-over-year, making it the only product type to show positive price growth this quarter. Despite this, total transactions fell by 10.3%, leading to a total sales volume decrease of 8.2% year-over-year, while marketing time slightly increased to 22 days.
The Detached Home market remained balanced, with marketing time holding steady at an average of 14 days. Transaction count for detached homes increased by 3.3%, and sales volume rose by a healthy 2.5%, though the average price saw a nominal dip of 0.8%, settling at $893,679.
Both Row Units and Semi-Detached Units experienced decreases in transaction counts and increases in marketing time, now averaging 13-14 days, leading to a sales volume decline of 3.4% across these categories.
Stacked Condos reflected a mix of the condo apartment and row home performance, with marketing time at 22 days and transaction count down by 2.4%.
Overall, while apartment condos demonstrated pricing momentum, other segments faced challenges, particularly in transaction counts and marketing times.
The Economy
As mentioned earlier, the Bank of Canada has reduced its target for the overnight rate to 4.75%. This change aligns with easing inflation trends, as CPI inflation dropped to 2.7% in April. Globally, the economy grew by 3% in Q1 2024, with the US expanding more slowly than expected, impacting our economic outlook.
In Canada, Q1 2024 saw resumed growth, driven by strong consumption, business investment, and housing activity, though excess supply persists. Looking at this from a wider lense than just real estate, it's essential to note that actions by other central banks, especially the US Federal Reserve, are closely watched as they influence Canada's monetary policy.
It is clear from the actions taken that The Bank of Canada is committed to restoring price stability. Rate cuts are part of that effort but as expected will take time to display their overall effects. Understanding these economic shifts can help us better prepare for shifts in the market.
The Luxury Market
In the 2nd Quarter of 2024, the luxury real estate market, which I define as sales in the top 5% price point in a given time period and for this quarter displaying a threshold of $1,584,000, exhibited a mix of declines and rapid adjustments. The Luxury Price Threshold was down 2.8% from the same period last year.
In the 2nd Quarter of 2024, the luxury real estate market exhibited a mix of declines and rapid adjustments. Residential transaction counts in the luxury segment fell by 5.4%, and the median price point decreased by 6% to $1,790,000. Interestingly, the marketing time for luxury homes saw a significant drop of 20.5% to 18 days, indicating a possible balancing of this market segment after a prolonged period of adjustment.
In the luxury condominium market, the number of transactions increased from 1 to 5 compared to the same period last year, though the limited sample size makes percentage changes less indicative of broader trends. The median price for luxury condos stood at $2,075,000 in Q2 2024, with marketing time considerably higher than the overall condo market at 65 days. This suggests that while the appeal for high-end condo apartments remains strong, the market is highly selective, focusing on specific locations and property types, and requiring more time to secure buyers.
Top Neighbourhoods by Sales Volume for Second Quarter 2024
Emerald Meadows/Trailwest
Volume: $58,353,548
% of Q1 Sales: 3.69%
Units Sold: 83
Riverside South/Gloucester Glen
Volume: $50,125,228
Percent of Q1 Sales: 3.17%
Units Sold: 64
Blossom Park/Findlay Creek
Volume: $40,846,020
Percent of Q1 Sales: 2.58%
Units Sold: 59
Top Neighbourhoods by Median Sale Price for Second Quarter 2024
(5+ Unit Sale Districts Only)
Rockcliffe East
Volume: $12,025,500
Median Sale Price: $1,820,000
Units Sold: 7
Mooneys Bay/Revelstoke
Volume: $7,044,800
Median Sale Price: $1,649,800
Units Sold: 5
Manotick East
Volume: $15,256,900
Median Sale Price: $1,560,000
Units Sold: 11
© 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.
