OTTAWA, June 6, 2025 – The Ottawa Real Estate Board (OREB) reports that 1,807 homes were sold through the MLS® System in May 2025. This represents a 33.1% increase over the previous month, a 14.9% rise compared to May 2024, and is 2.5% above the five-year average.*

“Year-to-date home sales activity remains in line with 2024; however, the 33.1% surge over April 2025 suggests we’re experiencing a delayed spring market,” says OREB President Paul Czan. “April’s federal election occupied consumers’ attention, and now we’re seeing a shift in the marketplace. Active listings are on the rise, months of inventory remain steady, and buyers appear to be regaining confidence, re-entering the market and completing transactions. For sellers, however, rising inventory means competitive pricing and strong presentation are more important than ever.”

“Compared to markets like Toronto or Vancouver, which are showing signs of stagnation, Ottawa is holding steady,” adds Czan. “Buyers and sellers are still able to transact fairly, with sale prices remaining close to list, even amid broader economic uncertainty. The Bank of Canada’s recent decision to hold the key interest rate steady may further encourage activity, as buyers feel more confident that rates will not drop further.”

By the Numbers – Prices
The MLS® Home Price Index (HPI) offers a more accurate reflection of price trends than average or median price measures.

• The overall MLS® HPI composite benchmark price in May 2025 was $629,800, up 0.8% from May 2024.

  • Single-family homes had a benchmark price of $700,000, up 0.6% year-over-year.

  • Townhouse/row units** saw a benchmark price of $446,900, an increase of 3.4% from 2024.

  • Apartments had a benchmark price of $404,700, a 3.6% decline from last year.

• The average price of homes sold in May 2025 was $728,623, a 4.8% increase over May 2024.

• Total dollar volume of all home sales in May 2025 reached $1.316 billion, a 20.4% increase from the same period last year.

OREB cautions that while the average sale price can indicate trends over time, it should not be used to determine the value of specific properties, as prices vary by neighbourhood. The average price is calculated based on the total dollar volume of all properties sold.

By the Numbers – Inventory & New Listings

• New listings rose 8.7% from May 2024, with 3,430 residential properties added to the market—15.8% above the five-year average.

• Active residential listings reached 4,347 units at the end of May 2025, a 13.5% increase from May 2024 and 54.2% above the five-year average.

• Months of inventory remained steady at 2.4, unchanged from the previous year. This figure represents the number of months it would take to sell current inventories at the current sales pace.

The Bank of Canada has held its target overnight rate steady at 2.75%, with the Bank Rate set at 3.00% and the deposit rate at 2.70%.

Since the April Monetary Policy Report, the United States has continued to adjust various tariffs, with both the U.S. and China stepping back from earlier aggressive trade measures. Bilateral trade negotiations have resumed with several countries, but outcomes remain highly uncertain. “Tariff rates are well above their levels at the beginning of 2025, and new trade actions are still being threatened. Uncertainty remains high.”

The global economy has shown some resilience, though this is partially due to businesses advancing activity in anticipation of future tariffs. In the U.S., consumer demand stayed solid, though a rise in imports caused a dip in Q1 GDP. Inflation has edged down but still sits above 2%, and the full impact of tariffs on prices has not yet been realized. In Europe, growth has been export-driven, and defence spending is on the rise. China, meanwhile, is experiencing a slowdown as earlier fiscal measures wear off, and its exports to the U.S. are being hindered by steep tariffs. Following April’s market volatility, most risk assets have rebounded and volatility has calmed—though markets remain sensitive to U.S. policy changes. Oil prices have varied but are relatively stable compared to April levels.

In Canada, Q1 GDP growth reached 2.2%, slightly exceeding the Bank’s forecast. The main drivers were advanced exports to the U.S. and higher inventories, though final domestic demand remained flat. Stronger-than-expected spending on machinery and equipment supported business investment. Consumer spending slowed from Q4 but remained positive, even amid a steep drop in confidence. Housing activity declined, primarily due to a significant drop in resale transactions. Government spending also decreased. The labour market has weakened, particularly in trade-reliant industries, with the unemployment rate now at 6.9%. Looking ahead, economic momentum is expected to slow further in Q2 as earlier gains from exports and inventories fade, and domestic demand stays weak.

CPI inflation eased to 1.7% in April, largely due to the removal of the federal carbon tax, which reduced overall inflation by 0.6 percentage points. “Excluding taxes, inflation rose 2.3% in April, slightly stronger than the Bank had expected.” Key measures of core and underlying inflation also ticked higher. Surveys show that many households expect tariffs to push prices up, and a growing number of businesses intend to pass those costs along. “The Bank will be watching all these indicators closely to gauge how inflationary pressures are evolving.”

Given the ongoing uncertainty around U.S. trade policy, a soft but not sharply declining Canadian economy, and stronger-than-expected inflation data, “Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts. We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.”

“Governing Council is proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy.” These risks include how U.S. tariffs impact demand for Canadian exports, the potential ripple effects on business investment, employment, and household spending, and how quickly businesses pass rising costs on to consumers. Inflation expectations will also remain under scrutiny.

“We are focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. We will support economic growth while ensuring inflation remains well controlled.”