Ottawa Real Estate Market Update – January 2025

Feb 5

The Ottawa real estate market commenced 2025 with a cautious tempo, as both buyers and sellers adapted to evolving economic conditions, including recent tariff implications and fluctuating interest rates. January typically experiences subdued real estate activity, and this year was no exception, with a slight decrease in sales compared to the same period last year.

Market Highlights:

Detached Homes: The average price increased by 8.4% to $821,202, with median days on market holding steady at 40.
Townhomes: Prices remained relatively stable, up 0.9% to $555,873, while median days to sell dropped by 3.5 days to 35.5.
Condos: The average price rose 5.4% to $441,704, though they took longer to sell, with median days on market increasing by six days to 51.

On the sales side, the number of sold listings dipped slightly:

Detached home sales declined by 3.8% (306 sales).
Townhome sales dropped by 3.0% (192 sales).
Condo sales saw the largest decline, down 5.2% (109 sales).

Factors Influencing These Trends:

Buyers remain cautious amid economic uncertainty, contributing to growing inventory levels. This shift provides buyers with more options and negotiating power as they navigate their home search. We observed an increase in available listings across the board, with detached homes now at 5.6 months of inventory (an increase of 2 months) and condos at 7.3 months of inventory (an increase of 3.4 months). Meanwhile, townhomes saw a slight drop in available supply, down to 3.5 months of inventory (a decrease of 1.4 months).

The economic landscape is evolving. The Bank of Canada reduced its key policy rate by 25 basis points to 3% on January 29, 2025, aiming to boost household spending and strengthen the economy.

bankofcanada.ca

This move is expected to bolster buyer confidence as we approach the spring market. Additionally, with trade war concerns fading and temperatures rising, many predict an uptick in activity in the coming months.

Looking Ahead: Preparing for the Spring Market

If you're considering buying or selling this year, it's advantageous to act before the spring rush. Increased competition can lead to more bidding wars and tighter timelines. Starting early allows you to capitalize on current market conditions.

Let's discuss your real estate goals and develop a strategy tailored to your needs. Reach out today for a personalized consultation!