'Positive movement' in Ottawa's real estate market in October with home sales up nearly 50%

A new home is displayed for sale in a new housing development in Ottawa on July 14, 2020. (THE CANADIAN PRESS/Sean Kilpatrick)

Ottawa home sales increased nearly 50 per cent in October, as "consumer confidence is getting stronger" following a fourth cut in interest rates this year.

New statistics from the Ottawa Real Estate Board show 1,179 homes and condominiums were sold in Ottawa last month, up from 816 units in October 2023.

The composite benchmark price for a home in Ottawa was $639,500 in October, up 0.4 per cent from $638,600 the year before. The average price for a condominium dropped 3.4 per cent to $407,000 in October.

“We’re seeing positive movement in Ottawa’s market with sales activity up,” Curtis Fillier, president of the Ottawa Real Estate Board, said in a statement.

"This is especially interesting because there has been sustained activity throughout the year instead of the typical seasonal spikes and lulls. Consumer confidence is getting stronger, boosted by another consecutive Bank of Canada interest rate cut — though many are waiting for additional rate drops.”

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On Oct. 23, the Bank of Canada cut its key lending rate from 4.25 per cent to 3.75 per cent, the fourth rate cut in a row by the central bank.

The Bank of Canada's next interest rate announcement will be December 11.

Fillier says the challenge for Ottawa's real estate market "remains supply."

"We know from experience that Ottawa’s inventory leans tight and can swing quickly from balanced territory to a seller’s market — which can compound affordability and accessibility challenges," Fillier said. "Now is always the time for fresh action and innovative policies that can create much-needed inventory.”

A total of 11,662 homes and condominiums were sold in Ottawa in the first 10 months of the year, up 9.4 per cent over the same period in 2023.

The Ottawa Real Estate Board says there were 2,089 new listings in October, up 10.4 per cent from a year ago. There were 3,354 active listings on the market as of the end of October.

Home sales by the numbers

• Ottawa composite benchmark price: $639,500
• Benchmark price for a single-family home: $724,500 (up 0.7 per cent from October 2023)
• Benchmark price for a townhouse/row unit: $506,900 (up 1.6 per cent from October 2023)
• Benchmark apartment price: $407,000 (Down 3.4 per cent from October 2023)