Sale prices for homes over $1M rose 8 per cent in 2024

The capital’s most expensive house sold in 2024 is the landmark home fronting Dow’s Lake at 55 Old Sunset Boulevard. Ottawa, ON. Dec 19, 2020. (Tyler Fleming / CTV News)

Sales of luxury homes in Ottawa rose in the first half of 2024, signaling heightened market confidence among buyers and sellers, according to a new report by real estate giant Engel & Völkers.

The company released its mid-year Canadian luxury real estate market report on Tuesday, revealing that conditions for luxury properties in Halifax, Ottawa, Toronto and Vancouver are "outperforming" trends in the average home sales market.

The report finds sale prices for homes priced between $1 to $1.99 million grew eight per cent in the first six months of 2024, while the average property value across all price points saw a 1.6 per cent increase between April 2023 and April 2024.

The average sale price for homes priced between $1 million and $1.99 million averaged at $1,278,263, while those in the $2 to $3.99 million range averaged at $2,703,264.

Homes in the $2 million and higher range saw more new listings than in previous years, the report found.

"Historically, this price segment was dominated by buyers from government industries. A new set of moneyed entrepreneurs are now driving demand at this price point, gravitating towards neighbourhoods like Manotick, Westboro-McKellar Park and the Glebe," the report said.

"These buyers are seeking out neighbourhood lifestyles with walkability as opposed to privacy."

New home listings increased overall, indicating a "return in seller confidence buoyed by the anticipated rate drop" in June. In the $1 million plus market, 287 new homes were listed, with 156 units sold.

"If sellers did not receive what they expected for this properties, they chose to pull the listings from the market rather than sell," the report said.

The most expensive home sold in Ottawa so far in 2024 was a home on Old Sunset Boulevard, which overlooks Dow's Lake and sold for $5 million.

The average cost of a property sold in Ottawa was $643,700. The benchmark price for single-family homes was $727,700, up 1.6 per cent from the year before. The average price for a single-family home was $719,000 in March.