Ottawa Real Estate Market Update: December 2024
As we wrap up the year, it’s time to reflect on an eventful November in the Ottawa real estate market. From major developments locally to global shifts that could ripple through our economy, there’s a lot to unpack. So, grab a warm drink, and let’s dive in!
What’s Happening in the Big Picture?
November brought two big headlines with implications for real estate.
- Trump’s Election and Mortgage Rates: With Donald Trump re-elected as U.S. president, Canadian mortgage rates might feel the aftershocks. Fixed rates, closely tied to bond markets, are influenced by inflation. Trump’s policies, like tariffs, often stoke inflation, which pushes bond yields—and fixed mortgage rates—higher. Currently, fixed rates sit between 4.49% and 4.79%, a slight uptick from earlier lows. Variable rates, however, may continue to trend down, making them increasingly popular among buyers.
- Canada’s Inflationary Policies: Closer to home, domestic factors, such as the upcoming "tax holiday," also contribute to inflationary pressures. All eyes will be on the Bank of Canada’s December rate announcement, with some experts predicting a holiday gift—a potential rate cut.
November Ottawa Market Highlights
The Ottawa Real Estate Board’s transition to a new MLS system has reshaped how we view local data. While the change introduced some challenges, the core trends remain clear:
- Freehold Homes: November saw 622 sales, a slight uptick from October’s 620. The average sale price hovered around $758K, making it the second-highest November on record. Inventory remains tight, with just 2.4 months of supply, signaling a seller’s market.
- Condos: Condo sales also inched up, with 223 units sold compared to 221 in October. The average price stayed steady at around $430K. With 3.5 months of inventory, the condo market remains balanced, though slightly softer than the freehold market.
In the News: BC’s Bold Housing Initiative
On the west coast, British Columbia is shaking up housing policy with its Shared Equity Housing Plan. Here’s what you need to know:
- The Heather Lands Development: A new community in West Vancouver is under construction, offering 2,600 residential units in a prime location. A two-bedroom condo, which would typically sell for $1.3M, will become accessible to middle-class buyers thanks to a 40% down payment loan from the provincial government.
- How It Works: Buyers only need to finance 60% of the purchase price. The loan is repayable when the property is sold or after 25 years, with reasonable interest. Restrictions ensure these homes benefit end-users, not investors.
This initiative focuses on helping middle-class families—teachers, nurses, and first responders—access neighborhoods traditionally out of their reach. It’s a model worth watching, and one we hope inspires similar policies across Canada.
Looking Ahead
As we head into 2025, Ottawa’s real estate market is poised for continued strong activity. If you're looking for a home, or curious about the journey, give your Ottawa Real Estate Agent Serge Papineau a call.
Wishing you a safe and joyous holiday season!
Wishing you a safe and joyous holiday season!
