In a disappointing showing, April 2024 new-home sales slumped 15 per cent from March and 20 per cent from last year to reach the fourth lowest April level in more than four decades. That’s according to PMA Brethour Realty, which prepares monthly reports on the Ottawa new-home market on behalf of the Greater Ottawa Home Builders’ Association.
There were 245 sales in April, compared to 291 in March and 309 in April 2024. For the year to date, sales were 1,103, down just under five per cent compared to last year when sales were at 1,160.
“April’s new-home sales numbers tell a clear story: the market underperformed,” says PMA Ottawa president Cheryl Rice. “While several factors contributed to the slowdown, much of the hesitancy appears linked to broader economic and political uncertainty.”
She cited the ongoing U.S.-China trade dispute, which impacts our supply chain with higher retail prices, and a move by the new federal Liberal government to cut public sector jobs, “which could further erode consumer confidence and slow sales activity.”
In an environment when affordability has been an issue in the housing market, she notes that we’ve seen a welcome increase in the availability of affordable housing options. “Townhomes, which have averaged a 31 per cent share of total inventory since 2018, accounted for 37 per cent of the market in April — an encouraging sign of healthy supply,” she says.
Similarly, condo townhomes made up seven per cent of inventory in April, a notable rise from their historical average of just three per cent, and even zero per cent at times, she adds. “Overall, the inventory of affordable housing products has not only remained stable but has actually improved.”
Builders have also “hit the sweet spot” with pricing and incentives, ranging from design centre bonuses to finished basements and other value-added incentives to help encourage buyers.
Rice feels there’s a renewed sense of optimism following Mark Carney’s political win. “Many prospective homebuyers who paused their search in April may now feel more confident re-entering the market, particularly if political stability takes hold in the coming months… For now, cautious optimism prevails. But whether that translates into stronger housing numbers will depend on how global and domestic issues unfold in the months ahead.”
