Cold start to 2025 for Ottawa’s real estate market, but average sale prices jump 5.8 per cent

A "for sale" sign is shown in Ottawa on Tuesday, Jan. 19, 2021. (THE CANADIAN PRESS / Craig Wong)

It was a cold start to 2025 for Ottawa’s real estate market, but the number of homes for sale increased in January as more sellers entered the market.

The Ottawa Real Estate Board says 617 homes and condominiums sold in January, down 4.2 per cent from January 2024 and 13 per cent below the five-year average.

Statistics show the average price of homes sold in January 2025 was $670,258, up 5.8 per cent from the year before.

“Ottawa’s market is seeing increased activity as more listings hit the market and buyers start to re-engage,” Paul Czan, Ottawa Real Estate Board president, said in a statement.

“Many buyers and sellers had been waiting for more conducive market conditions, but with the recent rate cut and potentially lower interest rates on the horizon, optimism is growing. While there’s more supply, the availability of suitable properties in various market segments remains tight.

“This is reflected in some homes selling quickly while others linger on the market. Sellers should be prepared to price competitively and present their homes in the best light to capture buyer interest in this evolving market.”

The Ottawa Real Estate Board says 1,359 new residential listings were added to the market in January 2025, up three per cent from January 2024 and 14 per cent above the five-year average. As of the end of January, there were 3,312 active listings available in Ottawa.

Czan says there are several factors of variability in Ottawa’s real estate market, including the recent Bank of Canada rate cut, the threat of U.S. tariffs and provincial and federal elections in 2025.

“Confidence is growing, and more buyers are expected to return to the market in the coming months, leading to an increase in transactions.”

The overall composite benchmark price for a home in Ottawa was $649,900 in January, up 5.2 per cent from a year ago, while the benchmark price for a single-family home was $713,000, up 2.3 per cent from January 2024.