The spring market is gaining momentum in Ottawa, with notable shifts in both buyer and seller behaviour. According to the Ottawa Real Estate Board (OREB), a total of 1,306 homes were sold through the MLS® System in April 2025. While this represents a significant 18.4% increase over March 2025, it also marks an 11.2% decline compared to April 2024.

Sales activity for the month came in 17.6% below the five-year average and 16.2% below the 10-year average, indicating a slower pace when viewed from a longer-term perspective.

“While April sales were down year-over-year, we saw a healthy month-over-month increase—an encouraging sign of growing momentum as we move through the spring market,” says OREB President Paul Czan. “Inventory remains at higher levels compared to previous years, indicating a gradual move towards a balanced market.”

As market conditions shift, both buyers and sellers are adjusting their strategies.

“With more certainty following the federal election, buyers are returning with greater confidence—but they're proceeding cautiously, taking their time, including conditions in their offers, and being more selective,” adds Czan. “Sellers, meanwhile, are adjusting to longer days on market, which makes strategic pricing and thoughtful home preparation more important than ever. If the listing is priced well, shows well, it's moving—and in some cases, it’s even getting multiple offers. Looking ahead, we’ll be watching how the federal government’s recent housing commitments translate into action. Policies aimed at increasing supply, improving affordability, and supporting first-time buyers are welcome steps toward meaningful impact here in Ottawa.”

By the Numbers – Prices

The MLS® Home Price Index (HPI) provides a more accurate reflection of market trends than traditional average or median price measurements.

• The overall MLS® HPI composite benchmark price was $631,200 in April 2025 — a 1.1% increase from April 2024.

• The benchmark price for single-family homes reached $703,200, rising 1.0% year-over-year.

• Townhouses/row units saw a more notable price gain, with a benchmark of $440,000, up 4.4% compared to April 2024.

• Apartment-style properties experienced a decline, with the benchmark price at $404,000, down 2.8% from the previous year.

Meanwhile, the average sale price across all property types in April 2025 stood at $707,180, reflecting a modest 0.4% increase compared to April 2024. The total dollar volume of home sales amounted to $923.5 million, which represents a 10.8% decline year-over-year.

By the Numbers – Inventory and New Listings

Market supply continued to expand in April, offering more options for prospective buyers.

• New listings totalled 2,589 residential properties, a 3.8% decrease compared to April 2024. However, this figure remains 2.8% above the five-year average and 5.6% above the 10-year average for April.

• Active listings reached 4,878 units by the end of the month, a surge of 54.2% over last year. Inventory levels were 86.9% higher than the five-year average and 51.3% above the 10-year average.

• The months of inventory—which measures how long it would take to sell all current listings at the current sales pace—stood at 3.7, up from 2.2 months in April 2024.

As Ottawa’s real estate market continues its transition toward more balanced conditions, buyers and sellers alike will benefit from working closely with knowledgeable REALTORS® who can help navigate pricing strategies, property preparation, and offer negotiations.

Stay tuned for more insights as we monitor how upcoming policy implementations and evolving market dynamics shape the remainder of the 2025 real estate landscape.

Source:OREB.ca

In its latest interest rate announcement, the Bank of Canada has chosen to hold the overnight rate steady at 2.75%, with the Bank Rate set at 3.00% and the deposit rate at 2.70%.

This decision comes amid significant shifts in U.S. trade policy and growing uncertainty surrounding tariffs, which have collectively dampened global and domestic economic growth prospects while increasing inflation expectations. The April Monetary Policy Report (MPR) addresses this uncertainty by outlining two possible scenarios for U.S. trade policy moving forward.

• In the first scenario, trade uncertainty remains high but tariffs are limited in scope. Under these conditions, Canadian economic growth is expected to weaken temporarily, while inflation holds close to the 2% target.

• In the second scenario, a prolonged trade war drives the Canadian economy into recession this year, with inflation projected to rise temporarily above 3% in 2026.

The Bank notes that various trade policy outcomes are possible, and the level of uncertainty—both in terms of potential scenarios and their outcomes—is unusually high due to the rapid and unprecedented shifts in U.S. trade policy.

Globally, economic growth was solid at the end of 2024, and inflation had been easing towards central bank targets. However, rising trade tensions have since weighed heavily on the outlook. In the United States, signs of economic slowing have emerged amid elevated policy uncertainty and declining market sentiment. Inflation expectations have also risen. Meanwhile, euro area growth has been modest in early 2025, particularly impacted by a sluggish manufacturing sector. In China, the economy ended 2024 strong but has shown signs of slowing more recently.

Financial markets have experienced significant volatility due to ongoing tariff announcements, delays, and persistent threats of escalation. This turbulence has only added to existing uncertainty. Since January, oil prices have dropped significantly, driven largely by downgraded global growth expectations. The Canadian dollar has appreciated recently, primarily due to a broader weakening of the U.S. dollar.

Domestically, Canada’s economy is also feeling the impact. Tariff-related uncertainty has eroded both consumer and business confidence, contributing to weakness in consumer spending, residential investment, and business capital expenditures in the first quarter. The labour market recovery has also been disrupted, with a reported decline in employment in March and indications from businesses that hiring will slow. Wage growth is showing continued signs of moderation.

Inflation measured at 2.3% in March, slightly lower than February, but still up from 1.8% in January. This increase is largely attributed to a rebound in goods prices and the conclusion of the temporary GST/HST suspension. Looking ahead, the removal of the consumer carbon tax in April is expected to suppress CPI inflation over the next year. Additionally, lower global oil prices will exert downward pressure on inflation. However, tariffs and supply chain disruptions could push certain prices higher. The extent of this impact will depend on how tariffs evolve and how quickly businesses pass increased costs onto consumers. While short-term inflation expectations have risen, long-term expectations remain relatively unchanged.

The Bank’s Governing Council will continue to evaluate both the downward pressures on inflation arising from a slowing economy and the upward pressures caused by higher input costs. The primary focus remains on maintaining price stability and ensuring Canadians retain confidence in the central bank’s ability to manage inflation.

As we navigate this period of heightened global volatility, the Bank of Canada is proceeding cautiously, paying close attention to a range of economic risks. These include:

• The potential reduction in demand for Canadian exports due to higher tariffs,

• The possible knock-on effects on business investment, employment, and household spending,

• The speed and extent to which businesses pass increased costs to consumers, and

• The evolution of inflation expectations.

While monetary policy cannot directly resolve trade uncertainty, it plays a crucial role in safeguarding price stability and supporting economic resilience during challenging times.

Source: bankofcanada.ca

The Bank of Canada today reduced its target for the overnight rate to 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%.

The Canadian economy entered 2025 in a solid position, with inflation close to the 2% target and robust GDP growth. However, heightened trade tensions and tariffs imposed by the United States will likely slow the pace of economic activity and increase inflationary pressures in Canada. The economic outlook continues to be subject to more-than-usual uncertainty because of the rapidly evolving policy landscape.

After a period of solid growth, the US economy looks to have slowed in recent months. US inflation remains slightly above target. Economic growth in the euro zone was modest in late 2024. China’s economy has posted strong gains, supported by government policies. Equity prices have fallen and bond yields have eased on market expectations of weaker North American growth. Oil prices have been volatile and are trading below the assumptions in the Bank’s January Monetary Policy Report (MPR). The Canadian dollar is broadly unchanged against the US dollar but weaker against other currencies.

Canada’s economy grew by 2.6% in the fourth quarter of 2024 following upwardly revised growth of 2.2% in the third quarter. This growth path is stronger than was expected at the time of the January MPR. Past cuts to interest rates have boosted economic activity, particularly consumption and housing. However, economic growth in the first quarter of 2025 will likely slow as the intensifying trade conflict weighs on sentiment and activity. Recent surveys suggest a sharp drop in consumer confidence and a slowdown in business spending as companies postpone or cancel investments. The negative impact of slowing domestic demand has been partially offset by a surge in exports in advance of tariffs being imposed.

Employment growth strengthened in November through January and the unemployment rate declined to 6.6%. In February, job growth stalled. While past interest rate cuts have boosted demand for labour in recent months, there are warning signs that heightened trade tensions could disrupt the recovery in the jobs market. Meanwhile, wage growth has shown signs of moderation.

Inflation remains close to the 2% target. The temporary suspension of the GST/HST lowered some consumer prices, but January’s CPI was slightly firmer than expected at 1.9%. Inflation is expected to increase to about 2½% in March with the end of the tax break. The Bank’s preferred measures of core inflation remain above 2%, mainly because of the persistence of shelter price inflation. Short-term inflation expectations have risen in light of fears about the impact of tariffs on prices.

While economic growth has come in stronger than expected, the pervasive uncertainty created by continuously changing US tariff threats is restraining consumers’ spending intentions and businesses’ plans to hire and invest. Against this background, and with inflation close to the 2% target, Governing Council decided to reduce the policy rate by a further 25 basis points.

Monetary policy cannot offset the impacts of a trade war. What it can and must do is ensure that higher prices do not lead to ongoing inflation. Governing Council will be carefully assessing the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. The Council will also be closely monitoring inflation expectations. The Bank is committed to maintaining price stability for Canadians.

Source: www.bankofcanada.ca

A total of 809 homes were sold in February 2025 through the MLS® System of the Ottawa Real Estate Board (OREB), marking a 10.2% decrease compared to February 2024. Home sales were 19.1% below the five-year average and 15.4% lower than the 10-year average for February.

"Ottawa’s sales activity moderated while prices held steady," says OREB President Paul Czan. "Despite increased inventory, market uncertainty continues to influence buyer and seller decisions. Some sellers who had previously delayed listing are now entering the market, contributing to more options for buyers. While demand remains strong in certain price segments, the pace of sales varies, making strategic pricing and preparation key for sellers."

Czan adds, "The Bank of Canada’s influence on borrowing power, ongoing economic factors like tariffs, and the potential impact of upcoming elections are also shaping buyer and seller sentiment. As we approach the spring market, we anticipate increased buyer activity, particularly if interest rates trend downward and confidence continues to build."

By the Numbers – Prices:

The MLS® Home Price Index (HPI) provides a more accurate representation of price trends compared to average or median price calculations.

• The overall MLS® HPI composite benchmark price in February 2025 was $658,300, reflecting a 4.4% increase from February 2024.

  • The benchmark price for a single-family home was $719,800, rising 1.3% year-over-year.

  • In contrast, the benchmark price for a townhouse/row unit dropped 11.6% to $438,000.

  • The benchmark price for an apartment reached $459,300, up 4.5% from the previous year.

• The average home price in February 2025 was $669,945, reflecting a 1.4% increase from February 2024.

• The total dollar volume of home sales in February 2025 was $541.9 million, down 8.9% from the same period last year.

OREB advises that while the average sale price can help identify trends over time, it should not be used to determine the value of specific properties. The average price is calculated based on the total dollar volume of all sales, and price trends will differ across neighbourhoods.

By the Numbers – Inventory & New Listings:

• New listings increased 4.8% from February 2024, with 1,668 new residential properties added to the market. This was 10.8% above the five-year average and 6.7% above the 10-year average for February.

• Active residential listings at the end of February 2025 totaled 3,735 units, a 61.4% surge compared to February 2024. Active listings were 95.7% above the five-year average and 51.4% higher than the 10-year average for February.

• Months of inventory stood at 4.6 at the end of February 2025, up from 2.6 in February 2024. This metric represents how long it would take to sell all current listings at the current pace of sales.

Source:www.oreb.ca

Ottawa City Council has approved plans to expand two existing fire stations in response to growing populations, intensification, and increasing call volumes in both Manotick and Greely. The fire station upgrades are part of the Ottawa Fire Services' 2025 Station Location Study, which aims to place fire stations in optimal locations to ensure prompt and effective emergency response across the city.

The renovations will include the addition of full-time personnel and enhancements to service coverage over the next 10 years.

• Station 94 at 5669 Manotick Main Street will expand its reach to a broader area, including Barrhaven and Riverside South, serving the growing population of residents, homes, and businesses in the area.

• Station 93 at 6891 Parkway Road in Greely will extend its coverage to nearby communities such as Findlay Creek, Leitrim, Metcalfe, and Osgoode.

The fire stations in these rural areas will also shift from a volunteer response standard to an urban response standard, reducing emergency response times from 11 minutes and 8 seconds to 7 minutes and 13 seconds. This change will significantly enhance the city’s ability to respond quickly to emergencies.

Funding for these expansions will be included in future budget plans, starting with the 2027 budget for Manotick and the 2030 budget for Greely.

Flood Protection Rebates for Ottawa Homeowners

In addition to the fire station updates, City Council has approved important updates to the Residential Protective Plumbing Program to help homeowners safeguard their properties from flooding and prepare for extreme weather events. These changes aim to simplify the application process and reduce associated costs.

Residents can now access larger rebates for installing sump pumps, backwater valves, and other protective plumbing measures to prevent basement flooding. Here’s what’s available:

• $3,000 for a sump pump in a new sump pit

• $1,500 for a sump pump in an existing pit

• $2,500 for an exterior storm backwater valve

• $1,000 for an indoor backwater valve

• 100% coverage of the building permit fee for protective plumbing work

These rebates are designed to help homeowners protect their properties from flooding and prepare for extreme weather events. The City has also made changes to the Compassionate Grant Program, which provides financial support for residents affected by flooding caused by sewer surcharging.

Ottawa’s commitment to enhancing fire services and flood protection is evident in these two important initiatives. The expansion of fire stations in Manotick and Greely will improve emergency response times, while the increase in flood protection rebates gives homeowners the tools to protect their properties from water damage.

For more information on the Residential Protective Plumbing Program click here!

Source: https://ottawa.ca/en