The January Ottawa Real Estate Market is warming up as we move into 2025, with increased inventory and cautious optimism among buyers. While January home sales were down 4.2% compared to last year, the number of new listings rose by 3%, offering more choices for prospective buyers.
Buyers Re-Engage Amid Changing Market Conditions
According to Ottawa Real Estate Board (OREB) President Paul Czan, buyers and sellers who had been waiting for better conditions are starting to take action. The recent Bank of Canada rate cut and the possibility of further reductions are fueling optimism. However, market dynamics remain mixed—some homes are selling quickly, while others linger due to varying demand across segments. Sellers are advised to price competitively and present their homes well to attract buyers in this evolving landscape.
Home Prices See Moderate Growth
The overall MLS® Home Price Index benchmark price for Ottawa in January 2025 was $649,900, reflecting a 5.2% increase from last year. Here’s how different property types performed:
- Single-family homes: $713,000 (+2.3% YoY)
- Townhouses/Row units: $448,000 (-3.9% YoY)
- Apartments: $436,900 (+4.5% YoY)
- The average home price in January was $670,258, up 5.8% from January 2024.
Inventory on the Rise
One of the most notable shifts in Ottawa’s market is the significant increase in available homes.
- 1,359 new listings were added in January, a 3% increase from last year.
- Active residential listings surged to 3,312, up 57.3% year-over-year.
- The months of inventory—how long it would take to sell current listings at the current sales pace—rose to 5.4 months, compared to 3.3 months last year, indicating a more balanced market.
Looking Ahead
While uncertainty remains with economic factors like U.S. tariffs and upcoming elections, buyer confidence is growing. With more homes available and potential interest rate cuts on the horizon, Ottawa’s real estate market is shaping up to be an active one in 2025. If you’re thinking of buying or selling, now is a great time to explore your options!
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