Ontario Construction News staff writer
The Ottawa New Home Market Report has been released for May 2024, and it shows that the housing market shows signs of improvement, with new home sales rising by 6.5% compared to the same month in 2023.
The 361 recently reported new home sales represent an increase from the 339 recorded in May 2023. There was, however, a higher jump of 14.6 per cent when compared to April 2024, when 315 new home sales were reported.
“We hope that these numbers signal a continued increase — slow but steady — in the supply and demand for new homes in Ottawa as the year progresses,” said Jason Burggraaf, executive director of the Greater Ottawa Home Builders’ Association (GOHBA).
The report also indicates that new home sales are up by 14.6% when compared to April 2024, which is a strong month for sales in the city. The year-to-date sales are up by 33% when compared to the same time last year, which shows sustained interest in new homes.
“While current figures show positive momentum, affordability and inventory levels will be key factors to watch in the coming months,” said Burggraaf.
Looking at the five-year average for May 2024, the figures are getting closer to the high of 402 new home sales reported in 2021.
“We’re not far off a high of 402 new homes sold in May 2021, (but) year-to-date sales are less than 50 per cent of what we saw in 2021,” said Burggraaf.
The report indicates that the affordability and inventory levels will be key factors to watch in the coming months.
The south end of Ottawa led in new home sales in May, accounting for 50% of the total, followed by the west at 29%. The east end sold 19% of new homes, while central Ottawa sold 2%. The report also shows that townhomes are the most popular product type sold in Ottawa, representing 50% of all sales. Single homes also remain a popular option, accounting for 34% of sales.
Condo town sales rose to 16% in May, and condo apartments remained at 1%. The total number of new homes sold in Ottawa in May was 361, and the year-to-date sales are still well below the highs of 2020-2022. However, the sales are showing signs of climbing, following a drop in just 1,155 sales in 2023.