The housing market in the National Capital Region ended 2024 on a high note, signaling renewed consumer confidence and market stability after a challenging period of slowdown. However, the sustainability of this momentum depends on potential economic headwinds, including federal public service cuts and the looming threat of U.S. tariffs.
Paul Czan, president of the Ottawa Real Estate Board (OREB), highlighted a positive shift, with an 11.8% rise in home sales compared to 2023. “We’ve seen a recovery,” Czan said, noting that improved interest rates and federal adjustments to mortgage rules have played a key role in rekindling homeownership dreams for many Canadians.
Despite the progress, challenges persist. Seniors and first-time buyers continue to face hurdles in accessing the market. Moreover, Czan warned that disruptions in new housing construction could exacerbate affordability concerns, especially as Ottawa remains a seller’s market with demand outpacing supply.
The median home price in Ottawa stood at $630,000 in 2024, with homes selling relatively quickly—averaging 20 days on the market compared to just seven days during the 2021 pandemic peak.
In western Quebec’s Outaouais region, the housing market saw similar trends. Median prices reached $475,000, just shy of the pandemic peak, driven by tight supply and falling interest rates. According to Roch St. Jacques, president of the Outaouais Realty Board, these factors have created a “perfect storm,” spurring buyers to act quickly.
Economist Francis Cortellino of the Canadian Mortgage and Housing Corporation (CMHC) noted an uptick in sales activity across Ottawa and Gatineau. Buyers leveraging variable-rate mortgages during high-interest periods to reduce monthly payments contributed to the activity. However, Cortellino cautioned that economic uncertainty tied to U.S. politics and local public sector job stability could temper future growth.
While the region’s economy is more diversified than it was a decade ago, allowing for resilience in other sectors, the road ahead for the National Capital Region’s housing market remains subject to external pressures.
Source: Swifteradio.com
