Job vacancies increasing is the market slowing down?

Ottawa Market Report - Jan 2025

Market Update 2025

January 14, 2025•4 min read

The real estate market is officially heating up again ( but not like 2022) ! Here’s everything you need to know about the latest trends and insights shaping the housing market:

Market Momentum

Sales on the Rise: October, November, and December saw consistent growth, with sales climbing 18.4% since May 2024.
Rural Ontario Booming: Month-over-month growth in rural areas of Ontario hit 25%, highlighting increased demand outside urban centers.
Tight Inventory: With just 2.6 months of supply, the market is now technically in seller’s territory. Although it still feels like a buyers market, good properties are selling fast.

Big Wins for Buyers

Recent policy changes are making homeownership more accessible, particularly for first-time buyers:

30-Year Insured Mortgages Are Back: Longer amortizations help reduce monthly payments.
Price Caps Lifted: Homes priced up to $1.5M now qualify for insured mortgages.
Lower Down Payments: As of December 15, 2024, the minimum down payment requirement has decreased. For example, a property in Victoria, BC that previously required a $250K down payment now only needs $100K!

What’s Next?

Interest Rate Cuts: With five consecutive rate cuts, borrowing is becoming more affordable, driving more buyers into the market.
Price Rebound: Home prices have begun rising for the first time since July 2024, signaling a strong spring market ahead.
Bank of Canada Confidence: The central bank is easing its monetary policy, indicating economic stability and further housing activity growth.

Expert Insight – “A Long Way Home”

According to BMO Senior Economist Robert Kavcic:

Modest Recovery Expected: National sales volumes are projected to rise 12%, and home prices could climb by 4% in 2025.
Regional Trends: Southern Ontario and B.C. are set to recover, while Alberta and Atlantic Canada may cool after years of outperformance.
Property Types:
- Single-Detached Homes: In high demand due to limited supply and appeal to young families.
- Condos: Oversupply from investor-owned units could lead to price struggles, even as detached housing improves.
Housing Starts: New construction is expected to soften due to weaker pre-sales and slower population growth, though levels remain strong overall.

This is exactly in line with what I've been talking with many of my clients and strongly believe will play out.

Takeaway

The market is moving fast, with renewed demand, lower borrowing costs, and significant policy changes opening doors for buyers. While single-detached homes are thriving, condo investors may face challenges with rising inventory. As we head into the spring market, expect increased activity and price growth in key regions.

The way to "win" in this market is being proactive. Very important first step is the pre approval if you don't know exactly how much you can afford you're going to be many steps behind when searching.

The power for "deals" will be in those who are ready to move when the opportunity strikes and trust me opportunities do come up but when you have to setup a meeting with your bank which can take a week + get them all your documents for another week. That home will likely be sold.

Act like a sniper, setup shop talk with your realtors, get your pre approvals get your home consultation if you're looking to sell, be prepared.

Click here to send me an email.

Ottawa Market states at a glance - Sales are up!

I've noticed the sentiment strongly change and this tends to be the trend, buyers tend to like to buy properties while prices and overall out look are heightening. This is because people have a stronger urge not to miss out ( similar to past years).

Ottawa Housing Market Snapshot – January 1, 2025

Average Home Price: $639,461 (+1.2% vs. December 2023)
- Freehold Houses: $747,652 (+3.5%)
- Condos: $427,784 (-0.6%)
Sales Activity (December 2024):
- Total Residential Sales: 476 (+5.3% YoY)
- Freehold Sales: 315 (+1.0% YoY)
- Condo Sales: 161 (+15.0% YoY)
Days on Market:
- Freehold Houses: 44 days (vs. 43 days last year)
- Condos: 41 days (vs. 38 days last year)
Inventory: 1,246 homes listed, equating to 2.6 months of supply.