Ottawa Market Report - June 2025
Ottawa Real Estate Market Update – May 2025
Ottawa recorded 2,092 residential sales in May, a 3.4% increase from last year.
Sales Breakdown:
Freehold Homes: 928 sales (+8.5%)
Condominiums: 347 sales (–8.2%)
Average Prices:
Overall: $721,656 (+4.5%)
Freehold: $815,951 (+3.6%)
Condo: $469,479 (–0.2%)
Days on Market:
Freehold: 21 days (down from 22)
Condo: 31 days (up from 27)
Inventory:
2,902 active listings as of May 31
Market Insight:
Buyer activity continues to rise in the freehold segment, while condo demand has slowed slightly. Pricing remains steady across most segments, with modest gains for freeholds.
For Sellers:
Inventory is climbing. Some neighbourhoods are seeing strong competition while others give buyers plenty of options. Presentation matters more than ever—fresh paint, staging, and small touch-ups go a long way in helping your home stand out.
For Buyers:
The smart approach includes:
Early Pre-Approval: Even if you’re 6–12 months out, understanding your financial profile early gives you time to prepare.
Define Your Priorities: Think about preferred areas, commute times, amenities, and the type of community you want.
Start Searching 3–5 Months Out: Work with a realtor, be open-minded, and use the process of elimination to land the right home. The perfect fit is often the 8/10 that checks the boxes that matter most.
If you'd like to understand how these trends apply to your situation, feel free to reach out. My goal is always to guide buyers and sellers with strategies that make sense for them, every situation is unique.
GST Credit is Here—and It’s Bigger Than You Think
I’ll admit—I was a little misinformed about how the new GST credit for new builds would be applied. But now that it’s here, the details are starting to take shape (although some aspects still remain unclear—like whether it’ll be an upfront discount or a post-closing rebate).
What is clear is the impact: it’s significant.
Some builders are already passing the credit directly through as a price reduction. In one case, a unit we were watching dropped from $740,000 to $706,500—a $35,000 difference. Just be aware: many contracts include a clause stating that if the buyer doesn’t qualify, the builder can charge back the HST.
This program could be the boost the new build market needed—and signs are already showing. New builds in Ottawa are moving, and in some areas, they’re moving fast. In fact, two separate developments—one in the east end, one in the west—had buyers camping overnight to secure specific lots. Haven’t seen that since 2022.
A Personal Story That Still Stings
Back in 2019, my dad was shopping for a new home. He passed on townhomes priced around $400K and bungalows around $600K in Findlay Creek—saying they were too expensive.
Fast forward to today: those same homes are up 50–70%. Meanwhile, some of my friends who bought townhomes back then wish they’d bought two.
Lesson? You can’t predict the market. But if you buy based on facts, your lifestyle needs, and long-term perspective—real estate often works in your favour.
The Cost of Waiting
Rent vs. Buy Breakdown: A Real Case
I recently ran the numbers for a client who’s been renting at $2,500/month for the past 4 years:
Total rent paid: $120,000 → gone.
Now let’s say they had purchased a $600,000 townhome instead, with 10% down:
Monthly cost (mortgage + property tax): ~$3,136
Principal paid down: ~$45,000
Appreciation: ~2%/year = ~$49,000
Total equity gained: $94,000
Plus: their $60K down payment remains in the home
Now compare that to continuing to rent:
$636/month more in ownership costs vs. renting
Assume they saved and invested that $636/month in a HISA at 4%:
→ ~$44,650 over 4 years
The Result?
Buying = $50K+ ahead in equity—even after accounting for higher monthly costs and initial investment.
Final Thought
Whether prices are up or down, trying to time the market usually backfires. The better question is: Does buying make sense for your situation now?
If you're paying high rent, planning to grow your family, or just tired of waiting—this might be your moment.
Let’s talk about it.
Mortgage talk
Mortgage talk
Some of the top rates that we are seeing today are:
Fixed
Some of the top rates that we are seeing today are:
Fixed
5-Year Fixed: 4.34% (35% down payment or more)
May’s U.S. inflation came in softer than expected at 2.4% annually, with just a 0.1% month-over-month increase. Core inflation held steady at 2.8%. While shelter, food, and energy services saw slight increases, falling gas prices helped keep overall numbers subdued. Economists are flagging early signs of tariff-related price pressures, which could push inflation higher in the coming months.
For now, a summer rate cut by the Fed looks unlikely, with most expecting easing later this fall. That said, the cooler inflation data did ease pressure on bond markets—bringing Canada’s 5-year bond yield down slightly to 2.93%, which could help fixed mortgage rates trend lower.
Ron Gusinjac
Realtor®,
Royal LePage Performance Realty
613-890-0444 | [email protected]
201-1500 Bank St, Ottawa, ON, K1H 7Z2
