As we step into March 2025, it's time to take a closer look at how Ottawa's real estate market performed in February. With steady numbers across key metrics, the market remains stable, though shifting dynamics hint at potential changes in the coming months.

Key February 2025 Market Stats

1,668 New Listings (+4.8% year-over-year)
3,735 Active Listings
$719,800 Benchmark Price for Single-Family Homes (+1.3% year-over-year)
$459,300 Benchmark Price for Apartments (+4.5% year-over-year)
$669,945 Average Home Price Sold in February (+1.4% year-over-year)

Market Trends and Insights

1. Inventory Growth and a Balanced Market

The number of new listings increased by 4.8% compared to February 2024, signaling a slight rise in seller confidence. With 3,735 active listings, buyers had more choices than in recent months. This increase in inventory is helping the Ottawa market maintain a balanced environment, preventing rapid price surges while still supporting steady growth.

2. Prices Show Modest Gains

Despite some market hesitation, Ottawa's real estate prices have increased year-over-year:

The benchmark price for single-family homes rose by 1.3% to $719,800.
The benchmark price for apartments increased by 4.5%, reaching $459,300.
The average home sale price was $669,945, up 1.4% compared to February 2024.

These price gains indicate sustained demand in Ottawa’s housing market, even as external economic factors create some uncertainty.

3. Buyer Activity and Market Conditions

While inventory levels have increased, sales activity in February dipped slightly compared to last year. This could be attributed to several factors:

Seasonality: February is traditionally one of the slower months for real estate, as colder weather and winter conditions keep many buyers on the sidelines.
Mortgage Rate Expectations: Many buyers are closely watching for potential interest rate cuts in 2025. The Bank of Canada has hinted at possible rate adjustments later this year, which could drive increased buyer activity in the spring and summer months.
Economic Uncertainty: Global and national economic concerns, particularly regarding the USA’s current political and economic climate, may be causing some buyers to delay their decisions.

How External Factors Could Influence Ottawa’s Market in 2025

Interest Rates and Affordability

The Bank of Canada’s interest rate policies remain a key driver for the real estate market. If rate cuts materialize later this year, affordability could improve for many buyers, leading to a surge in demand. Buyers who have been waiting on the sidelines may enter the market, increasing competition, particularly in desirable neighbourhoods.

Impact of the U.S. Economy

There has been growing uncertainty about the U.S. economy, with potential tariff changes and economic shifts influencing consumer confidence. However, according to the Canadian Chamber of Commerce, the short-term impact of tariffs on Ottawa’s real estate market should be minimal, as exports to the U.S. represent a small percentage of the city's overall economy. Ottawa's market tends to be more resilient to global economic fluctuations, thanks to its strong government employment sector and stable local industries.

Spring Market Expectations

Looking ahead, as we transition into the spring market, we anticipate a rise in buyer activity due to:

Increased Inventory: More listings are expected to hit the market, providing more choices for buyers.
Warmer Weather: Historically, spring is a peak season for real estate activity.
Potential Rate Cuts: Lower mortgage rates could encourage more first-time buyers and investors to enter the market.

What This Means for Buyers and Sellers

For Buyers

If you’re looking to buy in 2025, now is a great time to monitor interest rates and act before competition intensifies in the spring and summer months.
With inventory levels rising, you may have more negotiating power in certain price brackets, particularly for homes that have been sitting on the market for longer.

For Sellers

If you plan to sell, preparing your home for the spring rush could be beneficial. Ensuring proper staging, pricing competitively, and working with a knowledgeable agent can help you capitalize on increasing buyer activity.
With steady price growth, sellers can remain confident that demand in Ottawa remains strong.

Final Thoughts

Ottawa's February 2025 real estate market remained steady and stable, with price growth and rising inventory indicating a balanced environment. While some buyers are waiting for interest rate cuts, the overall outlook for the Ottawa market remains positive as we head into the spring.