It has been a wild five years for the Ottawa housing market. Whether it was skyrocketing interest rates, uncertain housing availability, or the very real crisis of affordability, it’s clear that homeowners, homebuyers, Realtors and builders have found themselves on a rollercoaster ride through unstable and challenging territory.
But recently released data from the Greater Ottawa Home Builders’ Association (GOHBA) – PMA Brethour Realty Ottawa New Home Sales Report shows that the wild ride may finally be easing into a welcome cruise control.
In a mid-year check-in, Ottawa saw a four-year high for newly built homes in June, which indicates not just an improving market, but growing consumer confidence, even if that confidence remains tepid.
Cheryl Rice is president of PMA Brethour Ottawa, and she recently joined me for a four-part series of video interviews on housing market data and conditions. In that conversation, she noted that “interest rates going down is great news, but it’s going to take time to restore that confidence before people begin hitting the sales centres.”
We’re still far off the mark from when Ottawa had a red-hot housing market — our June 2024 totals are only half of what they were in June of 2020 — but they are also three times what they were in June of 2022. So, we’re making progress, and that’s a good thing.
The latest data for July indicates that this upward trend in year-over-year new-home sales is continuing. (August numbers are not yet available.)
This mid-year check-in also provides other valuable data, giving us a glimpse into which areas of the city are seeing the highest concentration of new homes and the types of homes being purchased, all of which is valuable information as we plan for the Ottawa of the future — one which reflects the needs and wants of its residents.
On the location front, Ottawa’s south end is the prime destination, with 49 per cent of all new-home sales. It’s followed by the west end at 33 per cent, while the east end comes in third at 17 per cent, and Ottawa’s centre core trails at only one per cent.
And when it comes to type of home, it’s perhaps unsurprising that townhomes are winning the popularity contest, given the cost of a single-detached home and the sheer number of both first-time homebuyers and those looking to downsize. Townhomes made up 59 per cent of June 2024 sales, almost doubling single-detached homes, which accounted for 31 per cent of sales, with town condos at 10 per cent.
That focus on townhomes is a direct result of our city’s home builders actively listening to what the market needs. Builders are coming out with smaller build forms that can be purchased for under $500,000. These may have base specifications and unfinished basements, but as Rice puts it: “It’s affordable and it’s a miracle for first-time homebuyers who want to get into the market.”
While we’re not out of the woods yet, GOHBA believes we’re heading in the right direction. We are still facing market pressures and economic fluctuations, and we are certainly still facing a lack of housing affordability in a city whose population is rising dramatically. But our new-home builders are committed to creating housing options for Ottawa’s residents that suit our market.
Add to that data that shows a consistent — and rising — demand for and supply of new homes, and we have some very positive signs that we’ve got a solid foundation to help ensure that Ottawa residents can make their dreams of a home of their own a reality.
