For the first time since 2021, new-home sales for the month of October beat the five-year average — part of the evidence that 2024 “is proving to be a turnaround year for Ottawa new-home sales,” says Cheryl Rice of industry analyst PMA Brethour Realty.
In PMA’s latest monthly report prepared for the Greater Ottawa Home Builders’ Association, sales for the month were 40 per cent higher than last year (391 vs. 279), exceeding the five-year average of 336. It was “the market’s strongest performance for the month of October since 2021,” Rice notes.
While we haven’t quite hit the five-year average for the year to date (3,430), sales this year were still 37 per cent higher than last year (3,048 vs. 2,222), which is an encouraging sign of buyer interest following two years of lacklustre sales.
“There was a remarkable performance by town sales,” says Rice, with freehold and condo townhomes combining for an astounding 69 per cent of sales for the month.
“Consistently high levels of townhome sales reflect the broader national trend of affordability challenges and buyers who remain on the sidelines despite the rate cuts throughout the year.
“The rise in condo townhomes, now offered at competitive price points below $400,000 not seen since 2020, has helped attract investors, first-time buyers and younger families looking for affordability.”
And recent decreases in the Bank of Canada’s prime lending rate, which affects mortgage rates, are helping, with the benchmark rate dropping more than a full percentage point since June, which “could stimulate more activity as we head towards the new year,” Rice says.
As it has for the past few years, the south end of the region saw the largest share of sales (48 per cent), and Minto Communities and Mattamy Homes topped the list of market share by builder, combining for 43 per cent of sales.
