Unlike the resale market, May 2024 new-home sales continued an upward trend of late.
There were 357 new-home sales in May, which was up 5.3 per cent compared to the 339 sold in May 2023, according to the latest report prepared by industry analyst PMA Brethour Realty on behalf of the Greater Ottawa Home Builders’ Association. The resale market, meanwhile, saw a year-over-year drop of 9.2 per cent in May.
PMA’s Ottawa president, Cheryl Rice, offers the following explanation for the different performances of the two markets:
“Resale inventory remains relatively low at 2.3 months of supply, compared to more comfortable historical levels of four or five months. This could be translating into limited supply and choice for certain product types, such as affordable homes that are in high demand.
“Conversely, new-home builders have been bringing more and more affordable product to market, which has been gradually translating into increased sales. A few move-in-ready homes giving buyers more flexibility have also contributed to new-home sales.”
Townhomes sell the most
Townhomes remained the most popular housing choice in May at 51 per cent of the market, with condo towns capturing a further 16 per cent of sales.
Rice also notes that incentives such as one-day sales events “if promoted well, are generating interest and traffic. Buyers are looking for deals. Add to these incentives a sense of urgency and you have a formula for a potentially successful campaign.”
May new-home sales were also up 13.3 per cent over April, when there were 315 sales, and for the year to date, there have been 1,535 new-home sales. That’s still shy of the five-year average of 1,877, but almost 33 per cent higher than this point last year, when there were just 1,155 sales.
Once again, the south region saw the most sales, registering a 51 per cent market share, with Mattamy Homes, Minto Communities and eQ Homes seeing the most activity in that region.
