Thoughts and Insights: One Month Into 2025

Feb 3

With January behind us, the early signs of the 2025 real estate market are starting to take shape. Based on recent trends, we may be heading into an early spring market—a shift that could impact buyers and sellers alike. While it’s still early, a few key indicators suggest that activity is ramping up faster than expected.

Signs of an Early Spring Market

A few trends have caught my attention over the past month:

Multiple Offers Are Back – Many of the properties I’ve been showing to buyers have been receiving multiple offers. One home I recently toured had four competing offers—a clear sign of increasing demand.
Townhomes Are a Hot Commodity – Townhomes priced between $500,000 and $650,000 are getting a steady stream of showings and selling faster than expected.
Detached Homes Are Moving in Certain Areas – While townhomes are leading the charge, detached homes in some neighbourhoods—such as Half Moon Bay in Barrhaven—are also selling sooner than anticipated.
Strategic Pricing and Presentation Matter – Not every home is selling quickly, but those that are tend to be priced well and presented well. Buyers are selective, and the homes that are staged, cleaned, and accurately priced are the ones getting the most attention.
Conditions Are Still Common in Offers – Even in multiple-offer situations, I’m noticing that most accepted offers still come with conditions on financing or inspections. While some homes are selling firm, it’s not yet a widespread trend.
Sellers Are Testing Offer Holds – Some properties are holding offers in an attempt to generate competition. This strategy is working in certain cases, but only if demand is strong enough for that particular home type and location.

What Can Sellers Do to Take Advantage of the Market?

If you’re thinking about selling in 2025, preparation is key. The homes that are moving quickly are the ones that look their best and are priced right.

Hire an Experienced Real Estate Agent – Pricing is everything. Your agent should analyze the latest market trends to position your home competitively.
Declutter and Deep Clean – Buyers want to walk into a home and picture themselves living there. A clean, clutter-free space feels bigger, brighter, and more inviting.
Consider Minor Updates – A fresh coat of paint, updated light fixtures, or simple staging can make a huge difference in how quickly (and for how much) your home sells.

What Should Buyers Be Doing Right Now?

The competition is heating up, so if you’re in the market for a home this year, be ready to act fast.

Get Pre-Approved – Before you even start looking at homes, speak to a mortgage broker and get your financing in order. Knowing your budget will help you move quickly when you find the right home.
Work With an Agent Who Knows the Market – A knowledgeable real estate agent will help you understand what’s happening in real time and give you a competitive edge in multiple-offer situations.
Be Ready to Make Quick Decisions – Homes that are well-priced and well-presented are selling fast. If you’re serious about buying, have your financing, paperwork, and deposit ready so you can move quickly when the right home hits the market.
Know Your Limits – With multiple offers returning, it’s easy to get caught up in the excitement. Set a firm budget and stick to it to avoid overpaying.

What’s Happening in the Bigger Picture?

While the Ottawa market is showing signs of early strength, it’s important to keep an eye on external factors that could impact real estate:

Interest Rates – The Bank of Canada’s decisions on interest rates in the coming months will play a huge role in buyer confidence and affordability.
U.S. Market Trends – What happens across the border can have a ripple effect on Canada’s economy, mortgage rates, and overall market conditions.
Spring Inventory Levels – The number of homes hitting the market in the next couple of months will determine whether this early momentum continues or cools down.

The early signs of 2025’s real estate market suggest a busier-than-usual start to the year, especially for townhomes and well-priced properties. Buyers need to be prepared and ready to act, while sellers should focus on pricing and presentation to make the most of this early demand.

If you’re thinking about making a move this year, now is the time to start preparing. Let’s chat about what’s happening in your specific neighbourhood and how you can navigate the market in 2025.