Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for January 2025 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what is sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.
More Listings, Cautious Buyers, and a Shifting Market
The Ottawa real estate market is off to an interesting start in 2025, with increased activity, more inventory, and a mix of cautious buyers and motivated sellers. While home sales were slightly down year-over-year, confidence in the market is growing, fueled by a recent Bank of Canada rate cut and expectations of further interest rate reductions.
January 2025 saw 617 homes sold through the MLS® System of the Ottawa Real Estate Board (OREB), representing a 4.2% decline compared to January 2024. This number also remains 13% below the five-year average and 9.6% below the 10-year average for January. However, a significant increase in new listings and active inventory is changing the dynamics of the market, offering buyers more choices while pushing sellers to price more competitively.
Let’s dive into the key trends shaping the Ottawa real estate market in 2025.
Key Market Highlights for January 2025
617 homes sold (-4.2% YoY)
Average home price: $670,258 (+5.8% YoY)
Single-family benchmark price: $713,000 (+2.3% YoY)
Apartment benchmark price: $436,900 (+4.5% YoY)
Townhouse/Row benchmark price: $448,000 (-3.9% YoY)
New listings: 1,359 (+3.0% YoY)
Active listings: 3,312 (+57.3% YoY)
Months of inventory: 5.4 months (up from 3.3 months in January 2024)
Home Prices: A Closer Look
Despite a decline in sales volume, home prices in Ottawa have remained stable or increased in most segments:
Single-family homes: The benchmark price increased 2.3% year-over-year to $713,000, reflecting continued demand for detached properties.
Apartments: Condo apartments saw a 4.5% price increase, reaching $436,900, as affordability concerns drive more buyers towards this market segment.
Townhouses/Row Units: This segment was the only one to experience a decline, with prices falling 3.9% to $448,000, indicating shifting buyer preferences.
Average Home Price: Across all property types, the average sale price in January 2025 was $670,258, marking a 5.8% increase from last year.
OREB cautions that while the average sale price is a useful indicator of market trends, it does not necessarily reflect the appreciation or depreciation of individual properties, as home values vary based on location, condition, and other factors.
Supply & Inventory: A Major Shift in the Market
One of the most notable changes in Ottawa’s market is the significant increase in active listings, which have risen by 57.3% year-over-year, bringing the total to 3,312 units.
New Listings: The number of newly listed homes in January rose by 3.0%, with 1,359 new properties hitting the market.
Months of Inventory: The market now has 5.4 months of inventory, a substantial increase from 3.3 months in January 2024. This suggests that buyers now have more choices, reducing pressure on prices and slowing down bidding wars.
While inventory remains below pre-pandemic levels, the increase in available properties is creating a more balanced market—neither strongly favoring buyers nor sellers.
Why is Ottawa’s Market Changing?
Several key factors are influencing Ottawa’s real estate market:
1. The Bank of Canada Rate Cut
The recent interest rate cut has sparked optimism among buyers, with expectations of further reductions in 2025. Lower rates improve affordability, making it easier for buyers to qualify for mortgages and reducing monthly payments.
2. More Listings = More Choices for Buyers
For the past few years, Ottawa’s market has struggled with low inventory. However, with a 57.3% increase in active listings, buyers now have more negotiating power. This means fewer bidding wars and more opportunities for buyers to find properties that suit their needs.
3. Economic & Political Uncertainty
With U.S. tariffs, upcoming federal and provincial elections, and economic shifts, some buyers and sellers are taking a wait-and-see approach. These external factors could impact consumer confidence and influence real estate trends throughout the year.
What This Means for Buyers & Sellers
For Buyers:
✅ More Listings = More Choice: With inventory rising, buyers have more options and less competition compared to the past few years.
✅ Interest Rate Relief: The Bank of Canada’s rate cut is making financing slightly more affordable, and more rate cuts may come later in the year.
✅ Slower Price Growth: While prices are rising in some segments, the market is less competitive, giving buyers more negotiating power.
Advice: If you’ve been waiting for the right time to enter the market, now may be a good opportunity to secure a home before demand picks up again in the spring.
For Sellers:
⚠ More Listings = More Competition: With more homes on the market, sellers must price their homes competitively to attract buyers.
⚠ Presentation Matters: Well-staged, well-marketed homes are selling faster than overpriced or poorly presented properties.
⚠ Some Homes are Selling Quickly, Others are Sitting: Homes in high-demand areas are still moving fast, while others may take longer to sell.
Advice: If you’re planning to sell in 2025, work with an experienced real estate team to ensure your home is marketed effectively and priced right for the current market conditions.
Market Outlook for 2025
Looking ahead, Ottawa’s market is expected to gain momentum in the coming months as buyers take advantage of improved affordability and increased supply.
More buyers are expected to return to the market as confidence grows.
Sellers will need to adapt to changing conditions by pricing competitively.
Spring 2025 could see more sales activity, especially if interest rates continue to decline.
While external factors like economic policy and global trade conditions could create uncertainty, Ottawa remains one of Canada’s most stable and desirable real estate markets.
Final Thoughts
January 2025 marks a transitional phase in Ottawa’s real estate market. While sales were slightly lower, rising inventory and renewed buyer interest signal a move toward a more balanced market.
For buyers, the increase in inventory and lower rates provide great opportunities.
For sellers, competitive pricing and strong marketing will be essential to securing a sale.
As the year progresses, expect increased activity, more competition, and a shifting landscape for Ottawa real estate.
For more detailed statistics and insights, visit the Ottawa Real Estate Board at www.oreb.ca.
Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.
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