Every month we take a closer look and drill down the sales data of Ottawa condos from the previous month. Here are the statistics for February 2025 in the top five "downtown" areas - Centretown, Byward Market and Sandy Hill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment-style condominiums, and only what is sold through the MLS. Also important to note that DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is roughly 14 days for almost every single transaction.
Ottawa Real Estate Market Update: February 2025 Trends and Insights
The Ottawa real estate market continues to evolve, with February 2025 showing a steadying trend despite ongoing economic shifts. While sales activity has slowed, home prices have remained stable, and inventory levels have risen significantly. If you're considering buying or selling in Ottawa, understanding these market dynamics is crucial.
Here's a comprehensive breakdown of the latest market data from the Ottawa Real Estate Board (OREB) to help you stay informed.
Key Takeaways from February 2025 Ottawa Real Estate Market
809 homes sold, reflecting a 10.2% decline from February 2024.
1,668 new listings, marking a 4.8% increase from last year.
3,735 active listings, a 61.4% increase year-over-year.
Benchmark prices:
$719,800 for single-family homes (+1.3% YoY)
$459,300 for apartments (+4.5% YoY)
$438,000 for townhouses (-11.6% YoY)
19 days on market, indicating a relatively quick pace of sales.
4.6 months of inventory, signaling an increase in available homes.
Let's dive into the details of these trends and what they mean for buyers, sellers, and investors in Ottawa.
Home Sales in Ottawa: Slower but Steady
February 2025 saw 809 home sales, a 10.2% drop from last year. This figure sits 19.1% below the five-year average and 15.4% below the 10-year average, reflecting a more cautious approach from buyers amid economic and interest rate uncertainties.
However, despite the dip in sales, Ottawa’s market remains resilient, with prices holding steady and inventory rising, offering more options for prospective buyers.
Home Prices in Ottawa: Stability Amid Market Adjustments
MLS® Home Price Index (HPI) Benchmarks
Single-Family Homes: $719,800 (+1.3% YoY)
Apartments: $459,300 (+4.5% YoY)
Townhouses: $438,000 (-11.6% YoY)
Overall Composite Benchmark: $658,300 (+4.4% YoY)
The overall benchmark price rose 4.4% compared to February 2024, showing that despite fewer sales, home values remain strong.
Notably, townhouses experienced an 11.6% price drop, which could indicate shifting demand away from this segment, possibly due to affordability concerns or buyer preferences favoring single-family homes and apartments.
The average home sale price was $669,945, up 1.4% from last year.
Ottawa Housing Inventory and New Listings: More Options for Buyers
Key Inventory Stats:
1,668 new listings entered the market in February, up 4.8% YoY.
3,735 active listings were available, a 61.4% increase from February 2024.
Months of inventory rose to 4.6, compared to 2.6 last year.
This increase in inventory means buyers have more choices than in previous years. However, it also indicates a shift toward a more balanced market, where sellers may need to be strategic with pricing and preparation.
Months of Inventory and Market Balance
Looking at months of inventory (MOI), which measures how long it would take to sell current listings at the present sales pace:
2025 MOI: 4.8 months (a notable increase from 2.9 months in 2024).
Historically, Ottawa’s market has ranged from 0.7 MOI in 2021 (extreme seller’s market) to over 6 MOI in 2016 (buyer’s market).
While 4.8 months still indicates a balanced market, it's approaching buyer-friendly conditions, giving purchasers more negotiating power.
What’s Influencing the Ottawa Real Estate Market?
According to OREB President Paul Czan, multiple factors are shaping buyer and seller behavior:
Interest Rates & the Bank of Canada: Market uncertainty remains, with potential interest rate cuts influencing affordability.
Economic Factors: Tariffs, inflation, and cost-of-living concerns are impacting purchasing power.
Spring Market Expectations: As we enter spring, buyer activity is expected to increase, particularly if interest rates decline.
How Does This Affect Buyers and Sellers?
For Buyers:
More listings mean more choice—this is great news if you've been struggling to find the right home.
Prices remain stable, so waiting for a major price drop may not be the best strategy.
Interest rates may drop in the coming months, which could improve affordability.
For Sellers:
Homes are selling quickly, averaging 19 days on the market, meaning demand still exists.
More competition means strategic pricing is crucial—overpricing could lead to longer time on the market.
Presentation matters—staging, marketing, and pricing strategies will make a difference.
Final Thoughts: Is Now a Good Time to Buy or Sell in Ottawa?
With rising inventory, stable prices, and the potential for rate cuts, Ottawa’s real estate market presents opportunities for both buyers and sellers. If you're thinking about buying, selling, or investing, staying informed on these market trends will help you make the best decision.
Need Expert Guidance?
Navigating Ottawa’s real estate market requires experience and strategy. Whether you're looking to buy, sell, or invest, the New Purveyors team is here to help. Contact us today to discuss your real estate goals!
Important to note is that these statistics can only be as accurate as there are condos sold in Ottawa. The more condos sold in an area, the more accurate the averages will be.
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Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.
