Ottawa Real Estate Market Update: October 2024

Consumer Confidence on the Rise in Ottawa’s Resale Market

Ottawa’s resale housing market showed encouraging signs of growth in October 2024, with 1,179 homes sold through the MLS® System, up from 1,047 in September. This boost in activity reflects a year-to-date sales increase of 9.4% over 2023, pointing to improving consumer confidence. Unlike past years, the market has seen consistent movement without the typical seasonal spikes and lulls, suggesting that buyers are steadily re-entering the market despite broader economic uncertainties.

“Consumer confidence is strengthening,” says OREB President Curtis Fillier, who attributes the boost partly to the Bank of Canada’s recent interest rate cuts. The consecutive reductions, including the latest 50-basis-point cut, have given some buyers hope, though many are still awaiting additional cuts to help ease financing challenges.

Challenges and Solutions to the Supply Issue

While consumer confidence and market activity are improving, Ottawa’s real estate market still faces a significant inventory shortage. Supply constraints can rapidly swing Ottawa’s market from balanced conditions to a seller’s market, adding to affordability and accessibility concerns. The Ontario government’s recent Fall Economic Statement downgraded housing starts projections to 81,300 for the year, which is well below the province’s initial target of 125,000 new homes. High interest rates and economic challenges continue to be barriers for homebuilders.

OREB President Fillier notes, “Ottawa’s inventory is tight, and we know how quickly it can move into seller’s market territory, making it even more difficult for people to afford or access homes. Now more than ever, we need fresh policies and innovative solutions that can add inventory to meet demand.”