The Ottawa real estate market kicked off 2025 with a significant increase in active listings, yet buyers remained cautious despite signs of growing confidence.
Listings Surge as More Sellers Enter the Market
According to the Ottawa Real Estate Board (OREB), there were 3,312 active residential listings at the end of January 2025, marking a 57.3% increase compared to January 2024. This number is also 90.6% above the five-year average and 48.9% above the 10-year average, indicating a surge in supply.
New residential listings rose 3% year-over-year, with 1,359 properties hitting the market last month. While sellers are more active, buyers are slowly re-engaging, encouraged by a recent Bank of Canada rate cut and expectations of lower interest rates ahead.
Home Sales Dip, But Market Confidence Grows
While more homes were available, 617 residential properties were sold in January 2025—a 4.2% decline from January 2024. Sales remained below both five-year (-13%) and 10-year (-9.6%) averages, reflecting ongoing buyer caution.
OREB President Paul Czan noted that some homes are selling quickly while others linger, emphasizing the importance of competitive pricing and strong presentation in this evolving market.
Home Prices on the Rise
Despite fluctuating demand, home prices continued to climb:
Overall composite benchmark price: $649,900 (+5.2% year-over-year)
Single-family homes: $713,000 (+2.3% year-over-year)
Townhouses/row units: $448,000 (-3.9% year-over-year)
The average sale price for January 2025 was $670,258, a 5.8% increase from last year.
What This Means for Buyers and Sellers
For sellers, the rising inventory means more competition, making it crucial to price strategically and stage effectively to attract buyers.
For buyers, the increased selection presents more choices, and with interest rates potentially decreasing, now may be the right time to re-enter the market before prices rise further.
With confidence growing, Ottawa’s real estate market is expected to see more activity in the coming months. If you're considering buying or selling, now is a great time to connect with an experienced realtor to navigate the shifting market.
📩 Thinking of making a move? Contact me today for expert advice and personalized guidance!
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