The average sale price in the Ottawa housing market has increased by 0.9 per cent across all property types between 2023 and 2024, from $671,983 to $678,081. The number of sales transactions increased by 9.13 per cent during the same time period, from 10,700 unit sales in 2023 to 11,662 sales in 2024. Meanwhile, the number of new listings increased by 9.2 per cent, from 18,781 in 2023 to 20,500 in 2024. Looking ahead to 2025, Ottawa is expected to be a balanced market, with average price anticipated to rise by 2.5 per cent, and the number of sales increasing by 5.5 per cent. The number of listings is expected to increase by 5.5 per cent in 2025.
First-time buyers, retirees and distressed-sale buyers are expected to drive market activity in 2025, with townhouses seeing the bulk of sales activity in the region.
First-time homebuyers are purchasing townhomes and condos in the $400,000 – 600,000 price range. There’s also been a noticeable shift toward condominiums, driven by their relative affordability and lower maintenance requirements. Move-up and move-over buyers are primarily seeking properties that offer increased space, enhanced amenities, and superior locations to accommodate their evolving lifestyles, in the $700,000 – $1,200,000 price range. Among this buyer segment, there’s also been a noticeable shift toward suburban neighbourhoods such as Kanata, Barrhaven, and Orleans as these areas offer larger properties, a family-friendly environment, and a strong sense of community.
Meanwhile, retirees in Ottawa are gravitating toward properties that offer convenience, low maintenance, and proximity to amenities, typically seeking housing options that balance comfort, accessibility and affordability, such as condominiums and bungalows. The average price for a condominium in Ottawa is approximately $426,766. Bungalows vary based on location and size, typically ranging from $500,000 to $800,000.
Higher-density housing is expected to be built within the city core, such as condominiums and townhouses, to accommodate population growth and reduce urban sprawl. In response to housing affordability concerns, there is also an emphasis on constructing more affordable housing units, supported by government programs and incentives aimed at increasing the supply of cost-effective homes. The incorporation of advanced technologies is also becoming standard in new constructions to meet the expectations of tech-savvy buyers. New housing developments are generally progressing as planned, with several projects actively underway or nearing completion, including the MIKINÀK development by Ottawa Community Housing, which has been completed.
Sellers are cautiously optimistic going into 2025, and should remain mindful of potential challenges, such as economic uncertainties and interest rate fluctuations, which could influence buyer behaviour and market dynamics.
Buyer confidence is also expected to be high in Ottawa in 2025 compared to 2024, with increased insured mortgage caps, and the First Home Savings Account and amortization structures making it easier for first-time homebuyers to enter the market.
As interest rates continue to decrease, many more first-time homebuyers are expected to enter the market. Lower interest rates typically lead to reduced mortgage rates, making borrowing more affordable. This affordability can stimulate buyer interest, potentially increasing home sales.
Ottawa’s rental market is anticipated to experience heightened demand due to population growth and affordability challenges in the homeownership sector. This surge may lead to lower vacancy rates and upward pressure on rental prices.
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The average sale price in the Ottawa housing market has increased by 0.9 per cent year-over-year across all property types, between January 1 and July 31, 2024 (from $668,000 in 2023 to $674,000 in 2024). The number of sales has also increased by 6.6 per cent during the same time period (from 6,793 hame sales in 2023 to 7,238 sales in 2024). Meanwhile, the number of listings jumped by 18.9 per cent (from 11,463 in 2023 to 13,633 in 2024). The average sale price across all property types in the Ottawa housing market is anticipated to increase by one per cent through the remainder of 2024, and the number of sales is also expected to see a one-per-cent bump. The Ottawa housing market is currently experiencing balanced conditions, and this is expected to continue this fall due to adequate inventory levels available to meet buyer demand within the average price points and higher-priced properties. However, homes in the lower price points are limited in the market.
The biggest factors contributing to the housing shortage in the Ottawa housing market are:
• Construction delays from labour shortages and increased material costs
• Single-family homes stagnating on the market because of the price
• Buyers leaning toward resale rather than newly built homes, which often call for additional upgrade costs
On September 4, the Bank of Canada will share its next interest rate announcement. If the interest rate is cut again, as is widely anticipated, sellers could be more inclined to enter the market under the assumption that sidelined buyers will re-enter the market as well. Affordability challenges continue to impact buyer activity and interest rate cuts are more impactful on current owners in Ottawa than potential buyers. As a result, move-up and move-over buyers are coming back to the market due to interest rate cuts – especially those who purchased before 2021 and have built equity, and have fewer concerns around mortgages.
Ottawa housing market to favour sellers in 2021, average price expected to rise 7%
The Ottawa housing market currently favours sellers, thanks to low housing inventory and high demand. These conditions are expected to persist in 2021. Low inventory has been a common trend across many Ontario housing markets, putting upward pressure on prices. Indeed, Ottawa homes saw average price rise to $524,956 in 2020 (Jan. 1-Oct. 31) compared to $441,693 in 2019 (Jan. 1-Dec. 31). Looking ahead to 2021, RE/MAX expects Ottawa homes to see average prices increase 7% to approximately $561,702 across all property types.
Inventory levels are expected to improve in 2021, causing days on the market to increase as well.
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Who’s driving the Ottawa housing market?
Move-up buyers, who are typically families, are expected to propel the Ottawa housing market in 2021. Present-day move-up buyers are encountering difficulty purchasing a home, due to low inventory and frequent bidding wars, which are characteristic of this seller’s market.
Move-up buyers are also the driving force behind the luxury property market, which has seen a massive spike in demand since the start of COVID-19. This trend is expected to continue in 2021.
COVID-19 has significantly changed buyer sentiments and wants, with space being the most important must-have for current buyers. This has been a common trend across many Canadian housing markets as well as regions abroad, with many homebuyers seeking more square footage and green space outside of urban areas in the wake of COVID-19. Factors impacting this broader trend include the rise in remote work, the desire for more space and less density, as well as lower housing prices.
Ottawa’s most in-demand neighbourhoods based on 2020 sales are Orleans, Barrhaven and Kanata/Stittsville. Unlike pre-COVID buying, buyers are now less concerned with longer commute times in order to find a property that meets their priorities.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”
In the wake of COVID-19, the typically busy spring season in the Ottawa housing market was delayed until June 2020, according to the RE/MAX Fall Market Outlook Report. At this point when economies began reopening, home sales increased by 2% year-over-year, and average home prices continue to climb, with residential home prices up as much as 14% year-over-year. Price growth is expected to continue.
Lack of inventory and a desire to get into the market has positioned Ottawa as a strong seller’s market. Rural areas in the region have seen an uptick in interest, as buyers look to secure more space and amenities to accommodate a shift toward working from home.
Ottawa’s recreational market has seen a massive increase in interest, with buyers coming from major cities such as Toronto, to access larger properties and more space. Of all the markets within Ottawa, the luxury market is currently performing the best, with those who can afford larger homes looking to move up in the market post-COVID 19.
A 3% increase in the average residential sale price is expected in Ottawa for the remainder of the year.
Ontario Real Estate Trends
What’s been happening across other Ontario real estate markets? With the province being one of the hardest-hit regions in Canada, markets such as Niagara, Mississauga and Kitchener-Waterloo experienced significant drops in activity. However, come June, they bounced back aggressively as economies began to reopen. With all of Ontario now in phase three of re-opening and consumers more comfortable engaging in the market, market activity in Ontario is expected to remain steady in the fall, with modest price increases of up to 6% in some regions.
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Canadian Housing Market Trends
Leading indicators from RE/MAX brokers and agents across Canada’s housing market point to a strong market for the remainder of 2020. According to the RE/MAX Fall Market Outlook Report, RE/MAX brokers suggest that the average residential sale price in Canada could increase by 4.6% during the remainder of the year. This is compared to the 3.7% increase that was predicted in late 2019.
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The pandemic has prompted many Canadians to reassess their living situations. According to a survey conducted by Leger on behalf of RE/MAX Canada, 32% of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities. This trend is stronger among Canadians under the age of 55 than those in the 55+ age group. Not only are Canadians more motivated to leave cities, but changes in work and life dynamics have also shifted their needs and wants for their homes. According to the survey, 44% of Canadians would like a home with more space for personal amenities, such as a pool, balcony or a large yard.
Canadians equally split on their confidence in the housing market
Canadians are almost equally split in their confidence in Canada’s real estate market, with 39% as confident as they were prior to the pandemic, and 37% slightly less confident. When it comes to the prospect of a second wave of COVID-19, 56% of Canadians who are feeling confident in Canada’s real estate market are still likely to buy or sell. “The classically hot spring market that was pushed to the summer months due to the COVID-19 pandemic created a surprisingly strong market across Canada and across all market segments,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Looking ahead, government financial aid programs may be coming to an end in September, which could potentially impact future activity; however, the pent-up demand and low inventory dynamic may keep prices steady and bolster activity for the remainder of 2020. Overall, we are very confident in the long-term durability of the market.” Additional highlights from the 2020 RE/MAX Fall Market Outlook Report Survey:
- 48% of Canadians would like to live closer to green spaces
- 48% of Canadians say it’s more important than ever to live in a community close to hospitals and clinics
- 33% of Canadians would like more square footage in their home and have realized they need more space
- 44% of Canadians want a home with more outdoor space and personal amenities (i.e. balcony, pool etc.)
About the 2020 RE/MAX Fall Market Outlook Report The 2020 RE/MAX Fall Market Outlook Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments.
.Seller’s market conditions expected, prices to rise 6%
RE/MAX is forecasting conditions favouring sellers for the Ottawa housing market in 2020. The average residential sale price is expected to rise by six per cent, thanks to existing market momentum, despite the region experiencing greater market stability in the past. Low inventory and a strong buyer pool should put upward pressure on prices going into 2020.
Demand for properties will be driven by move-up, first-time and move-over homebuyers, with Kanata and Orleans being the neighbourhoods to watch in 2020, particularly due to the fact that the LRT is expected to eventually expand to those regions.
Ottawa is currently experiencing a seller’s market due to its low inventory. While the city is generally affordable, higher prices and low inventory is putting pressure on the market, affecting first-time homebuyers. The up-and-running LRT has resulted in surrounding development, particularly high-rise condominiums. Condominiums and townhomes tend to see the most activity in the region, due to their relative affordability compared to other property types.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”
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