The slow progression in the increase of Ottawa new-home sales slipped a bit as the April 2024 numbers dipped compared to the year before.
There were 317 new-home sales in April, down 7.6 per cent compared to April 2023, which saw 343 sales, according to the latest report by industry analyst PMA Brethour Realty Group prepared for the Greater Ottawa Home Builders’ Association. This was just shy of the five-year average of 328.
“Ottawa new-home sales continue to go in the right direction, albeit slowly with incremental increases in month-over-month sales so far this year,” says PMA Ottawa president Cheryl Rice. “Also encouraging is that year-to-date sales are up 45.2 per cent compared to last year — however, sales volumes for the same period in 2023 were quite low.”
For the year to date there have been 1,185 new-home sales versus 816 in the same period last year. The five-year average is 1,569.
Affordability ‘a main concern’
Rice notes that many builder project sites have reported higher visits from prospective buyers, “but the ability for the purchaser to obtain mortgage approval is holding up some of those potential sales. Affordability continues to be a main concern for the consumer.”
Not surprisingly, as a result, townhomes continue to capture the majority of sales at prices in the $500,000s to the $700,000s, she says, “with homes at the lower price point designed and built for greater affordability.”
Condo towns — a housing type that has been particularly popular due to its lower price point — were harder to find in April than in previous months, resulting in lower sales for this housing type.
And, as it often has for more than a year, the southern part of Ottawa “captured the vast majority of sales, dominated by traditional two-storey townhomes, which have been widely available in the area.”
As homes at some sites are nearing sold-out status, “a wave of new openings, new releases and fresh product designs with new pricing will continue to replenish the market,” Rice says, adding: “PMA’s new-home forecast for this year remains unchanged — Ottawa is in for a slow and steady market recovery.”
