Market Update February 2025

Posted by admin on March 5, 2025

Market Update

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Market Insight

In Ottawa, the real estate market remains competitive, with home prices continuing to edge upward. Year-to-date, 1,334 homes have been sold, down slightly from 1,385 during the same period in 2024. However, the average sale price has risen to $677,025, reflecting a 2.14% increase from last year’s $662,851. Homes are spending a similar amount of time on the market, with the Cumulative Days on Market (CDOM) ticking up to 45 from 44. Notably, 17.5% of homes have sold above the asking price, up from 16.8% in 2024, indicating strong buyer competition despite a slight dip in sales volume.

Lanark is also seeing price growth, along with an increase in sales. So far in 2025, 139 homes have been sold compared to 121 in 2024. The average sale price has climbed to $549,362, marking a 2.56% increase from last year’s $535,660. Buyers are paying more over the asking price, with 18.1% of homes selling above list, up from 13.2% in 2024. However, homes are taking longer to sell, with the CDOM increasing from 59 days to 72.

Overall, Ottawa continues to see price appreciation and strong demand, particularly for competitively priced homes. Meanwhile, Lanark’s market remains active, with rising prices and buyer interest, though homes are staying on the market longer.

The recent U.S. tariffs on Canadian goods introduce a layer of uncertainty to our real estate market, particularly concerning potential increases in construction costs. However, it’s important to note that the Bank of Canada has lowered interest rates to 3%, aiming to stimulate economic activity and offset potential trade-related challenges. This reduction in borrowing costs can make mortgages more affordable, benefiting both buyers and sellers. Moreover, the fundamental dynamics of our housing market remain robust, as individuals continue to buy and sell properties to meet their evolving needs. While the full impact of these tariffs is yet to be determined, maintaining a balanced perspective is essential, recognizing both the challenges and the opportunities that lie ahead.

Check out the latest in mortgage rates here:

Bank of Canada Rates