The Ottawa real estate market has seen significant fluctuations over the past five years, with both home and condo sales experiencing peaks and declines. As we enter 2025, the market shows early signs of recovery. Let’s dive into the trends shaping Ottawa’s housing market and what they mean for buyers, sellers, and investors.

Home Sales: Peaks, Declines, and a Rebound

The Ottawa housing market hit its highest point in 2021, with 10,426 homes sold, reflecting strong demand and favourable mortgage rates. However, sales plummeted in 2022 to 7,801 transactions (-25.2% year-over-year) due to rising interest rates, inflation concerns, and economic uncertainty. The downturn continued into 2023, with sales falling further to 6,932 (-11.1% YoY).

The good news? 2024 marks the beginning of a recovery with 7,880 homes sold - an encouraging +13.7% increase from the previous year. This indicates improved consumer confidence and potential market stabilization.

Condo Market: A Rollercoaster Ride

Ottawa’s condo market followed a similar pattern. After reaching a peak in 2021 with 4,819 condo sales (+10.1% YoY), sales tumbled by 24.3% in 2022, hitting 3,648 transactions. The market weakened further in 2023, dropping to 3,103 sales (-14.9% YoY), marking the lowest point in the last five years.

In 2024, we saw a modest recovery, with 3,285 condo sales (+5.9%) - a small but significant sign that the condo sector is regaining momentum.

Key Takeaways & Market Outlook

2021 Was the Peak: The combination of low interest rates and high demand led to record-breaking sales.
2022-2023 Decline: Interest rate hikes and economic uncertainty significantly cooled the market.
2024 Signs of Recovery: Home sales are up 13.7%, and condo sales have rebounded by 5.9%, suggesting a market turnaround.

What’s Next for Buyers & Sellers?

For Buyers: If you’ve been waiting on the sidelines, now might be the time to re-enter the market before competition increases.
For Sellers: The improving market conditions mean more opportunities to sell at favorable prices, though strategic pricing is key.
For Investors: With condo prices stabilizing and rental demand strong, 2025 could be a good year to capitalize on long-term opportunities.

The Ottawa real estate market remains dynamic, and staying informed is crucial. Whether buying, selling, or investing, understanding these trends will help you make the best decisions in this evolving landscape.

Are you considering a move in 2025? Let’s chat about how these trends impact your real estate goals!