Year: 2024

Ottawa was the first city in Canada to declare a housing and homelessness emergency. Despite chronic affordability and supply issues, Ottawa’s city council is proposing an ill-timed and counterproductive increase in development charges.

The Ottawa Real Estate Board (OREB) strongly opposes the proposed increase and wants the city to reconsider a move that threatens to worsen the challenges facing prospective homebuyers. The ramifications of a cost increase will also be felt beyond the broader housing market in our community when businesses and services cannot adequately attract and retain staff due to a lack of housing.

Raising development charges will significantly increase the cost of new homes. These charges, intended to fund essential infrastructure like roads, water, and wastewater services, already add a substantial financial burden to new developments. Further hikes will lead to higher home prices and slow the construction of new homes — ultimately making homeownership less attainable for many Ottawa residents.

At a time when we should be expanding the housing supply and enhancing affordability, this proposal moves us in the opposite direction. It risks deepening the housing crisis, putting additional financial strain on families and individuals striving to buy their first home. It runs counter to the federal and provincial governments’ efforts to address housing issues through new funding initiatives that do not rely on increasing costs for consumers.

OREB recommends implementing more effective and equitable solutions to funding essential infrastructure without hindering housing development, including:

• Capitalizing on federal and provincial funding programs designed to support municipal infrastructure projects without passing costs onto homebuyers.
• Allowing water and wastewater services to be provided by municipal services corporations.
• Changing city-wide policies to end exclusionary zoning, thereby allowing more diverse and affordable housing options to be built.
• Encouraging higher density developments along transit corridors to maximize the use of existing infrastructure.
• Helping switch underused commercial properties into residential spaces, increasing the housing supply without new land development.

OREB and its 4,000 member REALTORS® have insights and innovative solutions that promote housing affordability and supply and are committed to working with Ottawa’s city council, policy makers and housing partners to help more residents secure suitable housing.

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The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totaled 1,456 units in April 2024. This was an increase of 8.9% from April 2023.

Home sales were 2% below the five-year average and 6.9% below the 10-year average for the month of April.

On a year-to-date basis, home sales totaled 4,132 units over the first four months of the year — an increase of 11.5% from the same period in 2023.

“It’s a typical spring in Ottawa’s real estate market,” says OREB President Curtis Fillier. “What sets it apart from recent springs is a restored mutual confidence among both buyers and sellers. Buoyed by recent sales activity, sellers are more confident that they can move their property as evidenced by the uptick in listings. For buyers, the pressure of the pandemic market has eased and they’re comfortable taking the time to find the property that best suits their needs. The pace is still conservative while the economy is holding some back, but overall Ottawa’s market is strong and stable, and that’s a win-win.”

“The real story is in the details,” says Fillier. “Looking more closely at what’s selling and for how much suggests the demographic of buyer is changing. While most of Ottawa’s market is in balanced territory, townhomes have shifted to the seller’s market side as supply shrinks. Single-family homes are the most active market, which is inflating the average sale price. The next few months will be both telling and interesting as people continue to redefine their post-pandemic normal amid an upcoming federal election and back-to-work mandate for government workers. The detailed insights and data that REALTORS® have unique access to will be invaluable in helping buyers fine-tune their strategy for their specific neighbourhood and property type.”

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.

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• The overall MLS® HPI composite benchmark price was $643,700 in April 2024, a marginal gain of 1.6% from April 2023.
• The benchmark price for single-family homes was $727,700, up 1.6% on a year-over-year basis in April.
• By comparison, the benchmark price for a townhouse/row unit was $500,800, up slightly at 1% compared to a year earlier.
• The benchmark apartment price was $423,100, up 2.1% from year-ago levels.
• The average price of homes sold in April 2024 was $705,117 increasing 1.2% from April 2023. The more comprehensive year-to-date average price was $675,817, increasing by 2.4% from the first four months of 2023.
• • The dollar volume of all home sales in April 2024 was $1.02 billion, up 10.2% from the same month in 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 & New Listings

• The number of new listings saw an increase of 40.5% from April 2023. There were 2,597 new residential listings in April 2024. New listings were 19.7% above the five-year average and 4.6% above the 10-year average for the month of April.
• Active residential listings numbered 2,966 units on the market at the end of April 2024, a gain of 36.6% from April 2023. Active listings were 62.6% above the five-year average and 13.7% below the 10-year average for the month of April.
• Months of inventory numbered 2 at the end of April 2024, up only slightly from 1.6 in April 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.

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The number of homes sold through the MLS® System of the Ottawa Real Estate Board totaled 1,165 units in March 2024. This was an increase of 10% from March 2023.

Home sales were 21.5% below the five-year average and 15% below the 10-year average for the month of March.

On a year-to-date basis, home sales totaled 2,678 units over the first three months of the year — an increase of 13.1% from the same period in 2023.

“Ottawa’s real estate market is overall healthy, providing fertile ground for an active spring and summer ahead,” says OREB President Curtis Fillier. “The increases in new and active listings indicate that sellers are feeling more confident, boosted by the rise in showing activity. Buyers, however, aren’t acting as quickly as they perhaps should be — likely because affordability and supply are still roadblocks.”

“Something is around the corner in this market, though,” says Fillier. “People have adjusted to post-pandemic life and that means revisiting their housing needs. Some are downsizing or moving in from the city’s outskirts. Others are looking at more suitable properties that better meet all their needs, which weren’t accessible to them in the peak pandemic market. That’s creating pressure from multiple angles on the mid-range property market, which we know is tight to begin with in Ottawa. Just because you’re in the real estate market, doesn’t mean you’re safe from the market. If you’re a buyer or seller looking to make a move, I wouldn’t wait too long.”

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 $636,700 in March 2024, a gain of 2.7% from March 2023.
• The benchmark price for single-family homes was $719,000, up 2.6% on a year-over-year basis in March.
• By comparison, the benchmark price for a townhouse/row unit was $489,800, up slightly at 0.9% compared to a year earlier.
• The benchmark apartment price was $423,200, up 4.3% from year-ago levels.
• The average price of homes sold in March 2024 was $682,078 increasing 5.1% from March 2023. The more comprehensive year-to-date average price was $659,828, increasing by 3.2% from the first three months of 2023.
• The dollar volume of all home sales in March 2024 was $794.6 million, up 15.6% from the same month in 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 & New Listings

• The number of new listings saw an increase of 13.5% from March 2023. There were 2,074 new residential listings in March 2024. New listings were 2.3% below the five-year average and 11.1% below the 10-year average for the month of March.
• Active residential listings numbered 2,543 units on the market at the end of March 2024, a gain of 18.3% from March 2023. Active listings were 58.6% above the five-year average and 17.7% below the 10-year average for the month of March. Active listings haven’t been this high in the month of March in more than five years.
• Months of inventory numbered 2.2 at the end of March 2024, up only slight from 2 in March 2023 and below the long-run average of 2.6 months for this time of year. 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.

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The number of homes sold through the MLS® System of the Ottawa Real Estate Board totaled 886 units in February 2024. This was an increase of 15.2% from February 2023.

Home sales were 13.8% below the five-year average and 5.7% below the 10-year average for the month of February.

“Even with higher prices and the interest rate holding steady, Ottawa is a strong, active market,” says OREB President Curtis Fillier. “With metrics across the board up from last year, it’s clear both buyers and sellers are making moves. The metrics, however, don’t tell us about all the people relegated to the sidelines because affordability remains out of reach for many.”

The Municipal Property Assessment Corporation (MPAC) recently reported that “communities with homes under $500,000 are becoming increasingly scarce.” A decade ago, 74% of Ontario residential properties had a home value estimate of less than $500,000 but that number has dropped to just 19% today.

“REALTORS® know firsthand there is persistent demand for housing in Ottawa, and our market’s activity is constrained by a lack of affordable and suitable supply,” says Fillier. “That’s why we’re currently advocating for impactful measures such as allowing four residential units on property lots and getting rid of exclusionary zoning. There’s a missing middle that we need to build up.”

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 $628,500 in February 2024, a gain of 2.8% from February 2023.
• The benchmark price for single-family homes was $708,500, up 3.1% on a year-over-year basis in February.
• By comparison, the benchmark price for a townhouse/row unit was $495,000, up slightly at 0.6% compared to a year earlier.
• The benchmark apartment price was $417,000, up 2.7% from year-ago levels.
• The average price of homes sold in February 2024 was $651,340, increasing 2% from February 2023.
• The dollar volume of all home sales in February 2024 was $577 million, up 17.5% from the same month in 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 & New Listings

• The number of new listings saw an increase of 29.5% from February 2023. There were 1,539 new residential listings in February 2024. New listings were 10.3% above the five-year average and 3.3% below the 10-year average for the month of February.
• Active residential listings numbered 2,158 units on the market at the end of February 2024, a gain of 16.3% from February 2023. Active listings were 59.6% above the five-year average and 17.7% below the 10-year average for the month of February.
• Months of inventory numbered 2.4 at the end of February 2024, unchanged from February 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.

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The number of homes sold through the MLS® System of the Ottawa Real Estate Board totaled 565 units in December 2023. This was an increase of 7.6% from December 2022.

Home sales were 16% below the five-year average and 11.9% below the 10-year average for the month of December.

On a year-to-date basis, home sales totaled 11,978 units in all of 2023 — a decline of 11.0% from 2022.

“Ottawa’s resale market closed out the year in a steady, balanced state,” says OREB President Curtis Fillier. “This could be an early indication that consumer confidence is returning. We likely won’t see the full impact of rate stabilization until the second half of 2024, but December’s activity bodes well for a strong year ahead in Ottawa.”

“It hasn’t been the easiest market,” says Ken Dekker, OREB’s Past-President. “And while we probably won’t return to the peak levels seen in 2022, Ottawa’s market is poised to recover any ground lost in the past year. Both buyers and sellers need extra patience right now, but solid opportunities are there.”

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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 $623,900 in December 2023, a modest gain of 2.7% from December 2022.
  • The benchmark price for single-family homes was $704,900, up 2.7% on a year-over-year basis in December.
  • By comparison, the benchmark price for a townhouse/row unit was $481,100, up 4.2% compared to a year earlier.
  • o The benchmark apartment price was $417,200, up 2.1% from year-ago levels.
• The average price of homes sold in December 2023 was $632,487, increasing 1.7% from December 2022. The more comprehensive year-to-date average price was $667,794, a decline of 5.5% from 2022.
• The dollar value of all home sales in December 2023 was $357.3 million, up 9.4% from the same month in 2022.

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. Price will vary from neighbourhood to neighbourhood.

By the Numbers – Inventory & New Listings

• The number of new listings saw a major decrease of 12.4% from December2022. There were 523 new residential listings in December 2023. New listings were 4% below the five-year average and 16.1% below the 10-year average for the month of December.
• Active residential listings numbered 1,844 units on the market at the end of December, a gain of 3.0% from the end of December 2022.
• Active listings were 55.5% above the five-year average and 17.2% below the 10-year average for the month of December.
• Months of inventory numbered 3.3 at the end of December 2023, down from the 3.4 months recorded at the end of December 2022. 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.

New Year, New Leaders

In December, OREB Members elected a new Board of Directors to represent Ottawa’s 4,000 REALTORS® for 2024.

The new board will be comprised of 2024 President Curtis Fillier, Past-President Ken Dekker, President-Elect Paul Czan, and Vice-President Tami Eades. Joining them are directors Georgia Carrol, Laura Finlay, Julia Hay, Michael Lewicki, Jake Prescott, Jordyn Reid-Stevenson, Matt Richling, Ralph Shaw, and Russell Underhill.

Curtis — proudly the first openly gay OREB President — has been a dedicated volunteer of the board since 2014. His leadership extends to serving multiple terms on the Board of Directors and chairing various committees including Your Professional Network (YPN), Governance, and Finance and Audit, as well as planning OREB’s annual charitable golf tournament.

Prior to being a REALTOR®, Curtis worked in the accounting and tax advisory field. He is a Chartered Professional Accountant (CPA), holds a master’s degree in business and has experience across several corporations, including one of Canada’s largest privately owned businesses. Beyond his professional commitments, he enjoys travelling, fitness, home renovations, participating in 2SLGBTQ+ sports leagues, and spending quality time with his partner, Danny, and their dog, Bowser.

It was announced in late November that Janice Myers would move on from her role as OREB’s Chief Executive Officer to join the Canadian Real Estate Association as their CEO effective January 2, 2024. OREB’s Director of Corporate Services, Cherie Kirkby, assumes the role of interim CEO while a search for a permanent replacement is conducted.

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