Market Trends: A Gradual Uptick in Activity
The Ottawa real estate market is showing signs of increased activity as we step into 2025. The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totaled 617 units in January 2025—a 4.2% decrease from January 2024. Sales remained below both the five-year (-13%) and ten-year (-9.6%) January averages.

According to OREB, “Many buyers and sellers had been waiting for more conducive market conditions. With the recent Bank of Canada rate cut and potentially lower interest rates on the horizon, optimism is growing.” While more listings are entering the market, inventory levels remain tight in some segments. Sellers should price competitively and showcase their homes effectively to attract buyers in this evolving landscape.

Home Prices: Year-Over-Year Growth

• The MLS® Home Price Index (HPI) composite benchmark price reached $649,900 in January 2025, reflecting a 5.2% increase from January 2024.

Single-family homes saw a 2.3% price increase, bringing the benchmark to $713,000.

• Townhouse/row unit prices declined by 3.9% to $448,000.

• Apartment benchmark prices rose by 4.5% to $436,900.

• The average sale price of homes in January 2025 was $670,258, up 5.8% from last year.

Inventory and New Listings: A Growing Supply

• The number of new residential listings increased by 3.0% from January 2024, with 1,359 new listings entering the market.

• Active listings at the end of January 2025 reached 3,312 units, up 57.3% from January 2024.

• Months of inventory climbed to 5.4, compared to 3.3 in January 2024, indicating a more balanced market.

Looking Ahead: What This Means for Buyers and Sellers
While uncertainty remains with upcoming provincial and federal elections and economic fluctuations, buyer confidence is expected to rise in the coming months. Increased listings present new opportunities for buyers, while sellers should remain strategic in pricing and presentation.

If you’re considering buying or selling in 2025, now is the time to discuss your options. Reach out today for a personalized market analysis!