Real Estate News – February 2025
Welcome to the spring market and the spring thaw. I’d also like to mention we’re entering the spring skiing & snowboarding season (my favorite time of year :).
Let’s jump into it. Here’s my 2 cents on the current real estate markets in Ottawa:
On the bright side, interest rates continue to drop, and we expect that to continue throughout this year. We also have a federal election coming up, which typically makes people a bit more cautious.
As usual, the number one issue Canadians are faced with, is affordability. For that reason, the entry level townhomes and detached houses are still moving quickly (ie, the cheapest, best family homes). This comes as no surprise as this is the only price range that is remotely close to “affordable” for so many buyers. And yes, those listings are still going into the occasional multiple-offers / bidding war. The listings that are priced well, and are in good condition, will absolutely sell right away. You’ve been warned.
As for high-rise condos, they’re unfortunately moving slower. Unless it’s an absolute steal, buyers are fairly cautious to act as they have concerns about price volatility. If someone thinks an investment might be cheaper in the future, they aren’t going to pull the trigger (obviously). That being said, these condos are still selling, but they have to look perfect and be priced well.
Higher end, detached houses are also a little slower right now, unless they’re fully updated and located in the trendy neighborhoods. But for the most part, these ones are taking longer to sell as they can be viewed as a higher risk investment.
All-in-all, our real estate market is still fairly balanced, which is good news. If you’re thinking of buying or or selling, you will definitely want to understand the market you’re in and understand the financial costs involved with property ownership.
MARKET STATS:
February home sales volume is down by 10.2% compared to February 2024. The market is still struggling as we are still down 19% below the 5 year sales average, and down 15% below the 10 year average. On the positive side, home prices are maintaining their previous levels. The downside here is that homes are taking longer to sell. On the chart below, you can see the “months of inventory” continues to rise.
AVERAGE SALE PRICES:
The average price of detached homes sold in February was $719,300. This is an increase of 1.3% from Febuary 2024.
The average price of townhomes (condo & freehold) sold in February was $438,000. This represents a decrease of 11.6% from January 2024
Apartment condo average pricing is up 1.4% over this time last year.
BIG PICTURE : WHAT’S NEXT?
My predictions haven’t changed. I expect a fairly “balanced market” this year, with average prices remaining fairly level. We need to factor in the ongoing inventory shortages, slower GDP, increasing cost of living, substantial immigration, and relatively stable employment. If my market forecast changes, I will definitely let you know 🙂
The Rental Market:
I touched on this last month, but I’ll say it again. As far as apartment-style rentals, there is a ton of inventory hitting the market right now. So yes, prices are dropping in this category. As for rental houses and townhomes, those are still somewhat scarce and prices are holding up.
OTTAWA NEWS:
For music lovers in Ottawa, Live Nation has announced they are opening a very exciting and impressive live music venue where the old Chapters used to be on Rideau St and Sussex. History will be the name of it, and it will be the sister location to the successful and established Toronto venue (www.historytoronto.com).
With a capacity of 2,000 people, and owners who are planning to sink a ton of money into this space, I’m very excited to check this out. A much-needed addition to the Byward Market area, and will definitely help bolster all the local surrounding businesses. I’ll see y’all there for a live show when it completes in 2026!
More info here.
That’s it for this month. As always, if you or anyone you know is thinking of making a move, I would love to help 🙂
CHRIS STEEVES
www.exprealty.com
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