Ottawa Market Report - March 2025
Ottawa Real Estate Market Update – March 6, 2025
The Ottawa housing market is holding strong as we kick off the year, with steady sales activity and modest price growth. Here’s a quick snapshot of the latest numbers:
Ottawa Real Estate Market – February 2025
Freehold Avg. Price: $762,911 (+4.1%)
Condo Avg. Price: $440,817 (+4.4%)
Home Sales (YoY Change)
Total Sales: 529 (+12.8%)
Freehold: 352 (+8.0%)
Condos: 177 (+23.8%)
Days on Market
Freehold: 46 days (unchanged)
Condos: 52 days (unchanged)
The market has been busy right from the start of the year. I’ve been speaking with a lot of buyers and sellers, and the general sentiment is that people are ready to jump off the sidelines and get into the market. I don’t see that momentum slowing down as we move into spring. That said, higher-end properties are taking a little longer to move, but well-priced homes—regardless of price point—are selling quickly.
The hottest properties right now? Townhomes under $700K and single-family homes under $800K. I’ve been in three multiple-offer situations recently—lost two, but ended up finding something even better.
I’ve also had some really interesting conversations with people who have already bought or sold recently, and their experiences have been eye-opening.
What to Watch for When Choosing a Realtor
Your real estate agent should always have your best interests at heart. I truly believe a realtor’s role is to be an advisor first—giving you the facts, their opinion, and what they believe is best for you.
How do you spot an agent who isn’t looking out for you? Here are some red flags:
They pressure you to sign or buy without taking the time to explain things.
Surprise details pop up after you’ve committed (e.g., “Oh, we don’t do open houses” or “Appliances aren’t included”).
When you ask about the market, their response is just hype (“It’s strong! Prices are up 60%!”) with no real data or insight.
Before you hire an agent, ask these 10 key questions:
What’s your experience in the real estate industry and specifically in this market?
How many clients are you currently representing? Will I be working directly with you or a team member?
What’s your communication style and how often will you update me?
Can you break down your fees? Are there any hidden costs?
What’s your strategy for helping me find the right home in my price range?
Can you provide references from past clients?
How do you handle multiple offers and bidding wars? What’s your strategy to make my offer stand out?
Can you recommend mortgage lenders, home inspectors, or contractors if needed?
What happens if I’m not happy with the home after I move in?
How do you ensure I’m only seeing homes that truly match my criteria and budget?
Real Estate Investing: Cutting Through the Hype
Lately, I’ve been hearing a lot of investors getting fed unrealistic numbers by agents. If you’re looking to invest, the fundamentals always matter. Here’s what you need to ask yourself before buying:
Cash Flow: If it’s negative, it’s likely not a great investment (this is especially common with multiplexes right now).
Timeframe & Strategy: Are you holding for 5, 10, or 15 years?
End Goal: Are you looking for capital appreciation, a flip, or maximizing rental income?
Lifestyle Fit: Investing isn’t passive—it takes work. Make sure it aligns with your lifestyle.
I know, I know—we all want the unicorn property that cash flows, appreciates like crazy, and sets us up for early retirement. But let’s be real—we should’ve bought in 2019 if that was the plan.
I’ve put together a detailed pro forma that I send to my investor clients to make sure the numbers actually make sense. Right now, I see solid opportunities in SDU properties and flips. Multi-unit properties can still be safe long-term investments, but you’ll need strong capital reserves, and you’ll want to stick to prime areas (which means higher prices).
At the end of the day, base your investment decisions on facts—not speculation.
If you have questions about the market, whether buying, selling, or investing, feel free to reach out!
The Canadian Secondary Suite Loan Program
Launching January 15, 2025, this government-backed program offers low-interest loans of up to $80,000 for secondary suites, such as basement apartments or garden suites. With a 15-year repayment term, it helps homeowners increase rental income and property value.
Program Highlights:
Homeowners must occupy the property or have a relative living there
Funds must be used for secondary suite construction
Units must comply with zoning and be for long-term rentals
90% Insured Refinance Program
This program allows homeowners to refinance up to 90% of their improved property value (up to $2 million) for secondary suite construction. With extended amortization up to 30 years, it offers more borrowing power and lower payments. BMO is an early adopter, with more lenders expected to join.
Construction Loans & CMHC MLI Select
Construction loans provide phased financing for new builds and major renovations, typically requiring strong credit and detailed plans. The CMHC MLI Select program offers reduced insurance premiums for energy-efficient and affordable housing projects, rewarding sustainability and accessibility.
Maximizing Opportunities with Combined Strategies
Investors are leveraging multiple financing options to maximize returns. For example:
Pairing VTB financing with the Secondary Suite Loan Program
Using Construction Loans alongside CMHC MLI Select
Looking Ahead: The Financing Landscape of 2025
Real estate financing is evolving rapidly, creating new opportunities for investors. Understanding and strategically applying these financing methods will be key to staying competitive in 2025.
Mortgage talk
Some of the top rates that we are seeing today are:
Fixed
3-Year Fixed: 3.87% (less than 20% down payment)
4-Year Fixed: 4.49% (less than 20% down payment)
5-Year Fixed: 3.99% (less than 20% down payment)
5-Year Fixed: 4.09% (20% down payment or more)
5-Year Fixed: 4.04% (35% down payment or more)
Variable
5-Year Variable: 4.35% (less than 20% down payment)
5-Year Variable: 4.50% (20% down payment or more)
5-Year Variable: 4.40% (35% down payment or more)
An impending trade war with the US will impact some of the Bank of Canada decision making depending on how inflationary counter tariffs are in the Canadian market. Remember, the Bank of Canada’s only purview is to manage inflation, and in general tariffs are inflationary. So we may see the BoC be more cautious with reducing rates or perhaps even choose to increase rates the further we wage into a potential trade war.
All eyes on the next BoC announcement on March 12th.
Preferred Lenders:
Chris Allard
Allard Mortgage
[email protected]
Cell: (613) 324-2389
Ahmad Al-Shraify
AKAS Mortgages
[email protected]
Cell: 613-501-5973
Carlos Mora
TD BANK
Cell: 587-434-7696
Ron Gusinjac
Realtor®,
Royal LePage Performance Realty
613-890-0444 | [email protected]
201-1500 Bank St, Ottawa, ON, K1H 7Z2
