Ottawa Market Update

january 2025

The Ottawa real estate market began 2025 with more listings and a cautious approach from buyers. Home sales in January were slightly lower than last year, down 4.2%, while the average price of homes rose to $670,258, a 5.8% increase year-over-year. Inventory levels saw a sharp rise, with active listings up 57.3% from January 2024, leading to 5.4 months of inventory compared to 3.3 months last year. While more homes are available, not all segments are seeing equal demand—some properties are selling quickly, while others are sitting on the market longer.

For buyers, this means more options and a less competitive environment, though affordability remains a challenge as prices continue to rise.

Sellers, on the other hand, may need to adjust expectations, as higher inventory levels mean more competition. The market is leaning toward a balanced state but with a slight edge for buyers. If inventory keeps climbing, buyers could gain even more leverage in the coming months. Meanwhile, lower interest rates on the horizon could encourage more activity, potentially shifting momentum as the year progresses.