Ottawa Real Estate Market Update: What to Expect for Spring 2025

Mar 12

As we move into the spring market, Ottawa's real estate landscape is shifting. More homes are hitting the market, and with interest rates and other economic factors influencing buyer behaviour, we’re seeing some notable changes.

Whether you’re buying, selling, or just keeping an eye on the market, understanding these trends will help you make informed decisions. Here’s a breakdown of what’s happening in Ottawa’s real estate market right now.

Single-Family Homes: More Listings, Moderate Price Growth

Prices: The average price of a single-family home in Ottawa is up 2.9% compared to last February and 4.8% year-to-date (YTD). While growth is steady, rising home prices remain a trend.
Sales: Fewer homes are selling—sales are down 12.9% year-over-year and 6.1% YTD as buyers take a more cautious approach.
Inventory: There’s been a 50.1% increase in listings compared to last February and a 48.7% increase YTD, giving buyers more options. The months of inventory now sit at 4.9, meaning we’re entering a more balanced market, leaning towards a buyer’s market.
Market Outlook: With more homes for sale and fewer buyers making moves, sellers need to price competitively to attract offers. Buyers now have more room to negotiate.

Townhouses: More Choices, Slower Sales

Prices: Townhouse prices are up 3.8% year-over-year, continuing a slow but steady increase.
Sales: Sales have dropped 8.3% compared to last February and 2.7% YTD, showing that buyers are still cautious.
Inventory: Listings have surged 78% since last February and 69.6% YTD, pushing the months of inventory to 3.4, which signals a move toward a balanced market.
Market Outlook: Buyers have more options, and competition among sellers is increasing. Homes that are well-priced and well-presented will sell faster.

Apartments: Prices Rising, But Sales Slowing

Prices: The price of apartments in Ottawa has increased 1.8% since last February and 3.0% YTD, indicating that demand is still strong.
Sales: Sales are down 8.4% compared to last February and 5.5% YTD, reflecting some buyer hesitation due to economic uncertainty.
Inventory: Listings are up 77.2% since last February and 76.7% YTD, with months of inventory at 5.3, marking a shift into a buyer’s market.
Market Outlook: Buyers now have more options, which means sellers need to price competitively and ensure their property stands out.

What This Means for Buyers and Sellers

For Buyers:

If you’re looking to buy, there’s more inventory on the market than in previous years, meaning you have more choices. However, the best properties—those that are well-priced, well-maintained, and move-in ready—are still selling quickly. While you have more negotiating power, be prepared to move fast when you find the right home.

For Sellers:

With more homes available, pricing is more important than ever. Well-priced, well-presented homes will still sell, but overpriced listings or properties needing work may sit on the market longer. If your home isn’t move-in ready, expect buyers to be more hesitant.

Looking Ahead: What to Expect in Spring 2025

Here are some key factors shaping Ottawa’s real estate market in the coming months:

More Inventory: Expect high inventory levels to continue, giving buyers more options. Sellers should be prepared to price competitively.
Buyer’s Market Shift: The market is leaning toward buyers, meaning more negotiating power for them and greater competition for sellers.
Interest Rates Remain Key: If interest rates stay low, buyer activity could pick up. However, affordability remains a challenge, especially in higher-priced areas.

Final Thoughts

The Ottawa real estate market is in transition. Prices are rising, but sales are slowing, and more homes are becoming available. While buyers have more negotiating power, the best homes are still selling quickly. If you’re planning to buy or sell this year, staying informed and working with an experienced real estate agent will be key to navigating this evolving market.

For more insights on the Ottawa market, reach out to Reed Allen, Realtor with New Purveyors at RE/MAX Hallmark.