2025 is going to be a year to remember.
In this blog, we’re outlining the trends and predictions for the 2025 Ottawa Real Estate Market. The real estate market since the COVID-19 Pandemic has fluctuated drastically and 2025 is expected to continue to surprise us. Right now we’re seeing the Bank of Canada lowering interest rates paired with higher than usual (like 95% higher inventory in February 2025 compared to 2024) which is setting up a Buyers Market!
Here are our Ottawa Real Estate trend predictions for 2025:
Q1 2025 – Ottawa had a Balanced Market
For the first quarter of 2025, the Ottawa real estate market remained relatively balanced.
There was increased inventory with active residential listings up over 60% in March 2025 compared to March 2024 (OREB), at the same time the Bank of Canada began lowering interest rates in an attempt to stimulate the market. The combination of increased inventory and lowering interest rates tip the scales slightly in favour of buyers, however, other economic factors including the threat of tariffs on Canada from the U.S., has kept buyers at bay.
Q2 2025 – Our Ottawa Real Estate Trend Predictions
We expect to see buyers become more confident as they gain more power based on market conditions.
The Spring market typically comes with more inventory and higher demand as Buyers look to purchase before the Summer. With the inventory levels that we are currently seeing, paired with interest lowered interest rates we’ll start to see the shift into a Buyer’s Market.
Sellers should be prepared for higher competition and prepare with smart a smart listing strategy. In this market, it’s all about the details! Your Realtor should price strategically, provide high-quality photography and videography, and stage homes to attract the right buyers.
If you’re looking to sell this Spring, reach out to our team! We’ll take care of all of the details.
Despite increased competition and the emergence of a Buyer’s Market, we still predict modest price increases in the Ottawa market.
We also have our Federal Election happening this April which will no doubt impact buyer confidence. We’re also awaiting to see the real impact of Trump’s proposed tariffs and how the stock market will recover from the back and forth game we’re playing with the U.S.
Overall, we are cautiously optimistic for Ottawa real estate in Q2!
Q3 & Q4 2025: Ottawa Real Estate Market Trends
The second half of 2025 is still somewhat uncertain as the overall economy remains shaky. Despite some uncertainty, Royal LePage is forecasting the aggregate price of a home in Canada will increase 6.0% year over year in the fourth quarter of 2025. Nationally, single-family detached and condominium prices are forecasted to increase 7.0% and 3.5%, respectively, year over year in Q4 of 2025.
Despite the economic uncertainty Canada is facing, Ottawa is primed to be one of the markets that is predicted to see increases this year, as buyer demand, inventory and job stability are key strengths of our market.
Our Advice For Homebuyers in 2025
For buyers, we suggest evaluating your personal situation before deciding on when to buy. Interest rates are projected to continue to lower throughout the year with some predicting rates as low as 2.5% by the end of 2025. Lower rates will mean more buying power, BUT keep in mind that we’re expecting to see increased demand as rates lower which will eventually push up prices. Your goal should be to balance increased buying power with increased competition, buying when it makes the most sense for you.
Our Advice for Sellers in 2025
For sellers, it’s all about strategic listings! You need to price effectively and have a strong marketing strategy behind your listing. Getting your home in front of the right potential buyers is key. This means working with the best Realtors who offer staging, high-quality videography and photography, and who are experts in your area.
If you’re on the fence about selling and you live in the Ottawa area, sign up for our Home Advisory Club! We will evaluate your home to give you an idea of the value of your property, all without the pressure to sell! We’ll also give you tips and recommendations for renovations that will further boost your value (and help you stand out in a saturated market).
If you’re looking to buy or sell a home in Ottawa in 2025, contact the Adam Mills Team.
We would be happy to help you through the process and get you into your dream home.
