The year got off to a more promising start as January 2024 new-home sales more than doubled those of the year before.
There were 276 new-home sales in January, up 140 per cent compared to the 115 sold in January 2023, according to the latest report prepared by industry analyst PMA Brethour Realty Group on behalf of the Greater Ottawa Home Builders’ Association.
While sales are still well below the five-year average, it shows “cautious optimism for improved performance in 2024,” says PMA Ottawa president Cheryl Rice.
Home sales have been hampered since early 2022, when the market collapsed amid increasing interest rates, rising prices, a slowing economy and rising inflation.
But now, Rice says, “the housing market is percolating following signals from the Bank of Canada to the consumer that rate cuts are coming and, although timing is unknown, the bank’s tone is enough to stimulate improved resale and new-home sales activity this spring.”
Townhomes continue to be in demand, particularly condo towns, which jumped to 19 per cent of total sales this January from zero last year.
“Demand for the condo town continues to fuel an increasingly larger percentage of low-rise sales due to their affordability,” says Rice. “This product type can take different forms, appealing to a broad group of price-conscious buyers. In Ottawa, stacked condo towns have been the most popular choice.”
Rice expects condo towns and other affordable home types “to be the mainstay for new-home product in 2024.”
The south end also continued its dominance of market share, capturing 54 per cent of January 2024 new-home sales, followed by 27 per cent in the west end, 17 per cent in the east end and just two per cent in the central region.
