Ottawa Real Estate Market Update – March 2025

Apr 10

Spring is officially here, and with it comes a fresh look at how the Ottawa real estate market is shaping up so far this year. While March didn’t bring a major surge in activity, there are some important trends worth unpacking… especially if you’re planning a move this spring or just keeping an eye on the market.

Let’s take a look at what the numbers are telling us.

📉 Sales Slower Year-Over-Year, But Momentum Is Building

In March 2025, a total of 1,103 homes were sold through the MLS® System of the Ottawa Real Estate Board (OREB). That’s down 6.2% compared to March of last year. While that may sound concerning at first glance, it’s important to keep in mind that activity is increasing month-over-month, which is typical for the early spring season.

📊 Prices Are Holding Steady – With Variation by Property Type

Overall, benchmark prices (a more accurate measure of typical home value than the average or median) rose 2.2% year-over-year, reaching $626,200.

Here’s how that breaks down by property type:

Single-family homes: $698,700 (+2.7%)
Townhomes: $431,200 (-3.0%)
Condos: $400,900 (-4.3%)

While single-family homes continue to appreciate slightly, townhomes and condos have softened, offering more affordability for buyers entering the market or downsizing.

The average sale price across all property types in March was $685,866, nearly identical to last year.

🏡 Listings Up Sharply = More Choice for Buyers

One of the most significant shifts this month is the surge in inventory. At the end of March, there were 4,319 active listings on the market - up a huge 60.3% from last year.

That means:

Buyers have more choice than we've seen in quite some time
Sellers need to be strategic with pricing and presentation
We’re moving closer to balanced conditions

We also saw 2,221 new listings in March, up 4.1% year-over-year. While this is just slightly below the long-term average, it’s another sign that people are starting to re-engage with the market as interest rates stabilize.

Currently, months of inventory (how long it would take to sell all homes at the current pace) sits at 3.9 months, up from 2.3 months at this time last year. For context:

Under 4 months is generally considered a seller’s market
4–6 months is balanced
Over 6 months starts to favour buyers

We’re now teetering on that line, which could shift depending on how the rest of spring plays out.

🏗️ What’s Ahead: Economic Uncertainty, Interest Rates & Zoning Reform

While lower interest rates have helped bring more buyers off the sidelines, the market is still being shaped by economic uncertainty, including inflation, the upcoming federal election, and ongoing trade and tariff concerns.

Those trade issues, in particular, could impact new construction and further limit supply - something the city is actively trying to address. OREB has been involved in conversations around the New Zoning By-Law, which aims to expand housing options and unlock more flexibility across neighbourhoods.

🎯 What This Means for You

For Buyers:
More inventory and softening prices in the condo/townhome space could offer the window you’ve been waiting for - especially if you're looking for value downtown or in the starter-home market.

For Sellers:
Homes are still selling, and prices are relatively stable, especially for detached homes. But with more competition on the market, pricing right and standing out with strong marketing is more important than ever.

Not Sure Yet?
Whether you’re ready to jump in or just want to make sense of how this all applies to your property or goals, I’m always happy to chat.