One major question on everyone’s mind, is ottawa’s real estate market slowing down? Last year’s market was a low for most real estate markets due to high interest rates & sidelined buyers.
Here’s what our team of experienced Ottawa realtors think is in store for the Ottawa market this year based on current trends, Royal LePage predictions & more.
Here’s what’s happening in the Canadian real estate market in general and how these trends will impact 2025:
Just as we were starting to feel some relief from the gradual interest rate cuts made by the Bank of Canada, we started to feel the heat from our neighbours to the South. When President Trump announced his tariffs, we saw activity severely slow down as buyers and sellers were waiting out the storm.
Q1 of 2025 has been marked by a lot of starting and stopping in the real estate market, most due to the unstable economy and threats of a recession. However, we did see a 2.9% year over year increase in the aggregate home price in Ottawa and a 1.2% quarterly increase. Small gains, but gains nonetheless.
What does 2025 hold for Ottawa’s Real Estate Market?
Ottawa real estate has been a historically strong and stable market compared to other cities due to its relative affordability and strong job market. So we predict that throughout 2025 Ottawa real estate will remain stable and may even see minor gains in select areas, particularly the suburban market. Royal LePage predicts the National aggregate home price to rise 5.0% in Q5 2024. It’s predicted that the Ottawa market will continue to see growth in 2025, with a 4.0% increase by Q4 2025.
What it comes down to is the balance between supply and demand. We’re expecting more buyers to come to the market this spring and into the summer as interest rates continue to lower. We’re also seeing a slight increase in inventory this spring, giving buyers a leg up. However, we expect inventory and demand to level out this spring, creating a more balanced market with slight upward pressure on housing in key areas.
Prices will continue to inflate at what may be a slow but steady pace until we close the affordability gap with more housing. Housing starts are slowing down as investors and developers pause to reassess the value of their developments.
So, should you invest in Ottawa real estate now or wait for 2026?
We’ve said it before and we’ll say it again: real estate is too personal to give you a blanket statement pointing you one way the other.
In general, we’re seeing opportunities for buyers, sellers and investors this year. Timing your purchase is important but don’t get too caught up in timing it perfectly. Make the move when it’s the right time for you.
Want personalized advice from the best Realtors in Ottawa? Our team is ready when you are!
