We’re certainly not setting any records, but September 2024 new-home sales show that the Ottawa market continues to improve.
“The gap between 2023 and 2024 new-home sales continues to close, with buyers cautiously returning to the market,” says Cheryl Rice, who is president of industry analyst PMA Brethour Realty.
The numbers in PMA’s latest report for the Greater Ottawa Home Builders’ Association show a 54 per cent jump in September sales between this year and last (320 vs. 207). That’s also a 40 per cent bump from August, which typically sees lower sales than the fall.
For the year to date, new-home sales are 2,656, up 36 per cent compared to last year, when sales were at 1,943.
“Monthly and year-to-date sales are surely promising, and although 2024 sales may not blow the doors off sales performance of previous years, the market is going in the right direction,” Rice says.
We have almost returned to the five-year average of 337 sales for September, but we’re still falling short of the 10-year average of 406.
Rice says it was generally expected that buyers would return in larger numbers than we’ve been seeing due to lower inflation and interest rates, increased supply of affordable homes, a plethora of enticing builder incentives, and other factors.
“However, market conditions over the last couple of years have understandably left buyers a bit skittish when it comes to purchasing a new home.”
Not surprisingly, townhomes, which are a more affordable option for buyers, captured the lion’s share of the market at 57 per cent, compared to singles at just 30 per cent, with condo towns and apartments making up the rest.
Minto Communities, in particular, saw the most activity, thanks to releases of various townhome options at Riversbend at Harmony in Barrhaven and with the launch of Weavers Way in Almonte.
Mattamy Homes was not far behind, also selling a majority of townhomes, both freehold and condo, across its developments.
What should we expect for the remainder of the year?
“Barring any major events to shift current market trends,” says Rice, “we can expect moderate sales through to the end of this year, with pent-up demand potentially boosting sales significantly by spring 2025.”
