Market Update January 2025

Posted by admin on February 6, 2025

Market Update

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Market Insight

In Ottawa, the real estate market continues its upward trend. Year-to-date, 604 homes have been sold, compared to 581 during the same period in 2024. This marks a 4.79% increase in sales. Meanwhile, the average sale price has climbed to $672,802, representing a 4.78% rise from $642,069 last year. Properties are maintaining their selling pace, with the CDOM (Cumulative Days on Market) remaining at 52 days for both years. Additionally, 12.3% of homes sold above the asking price, slightly higher than the 12% recorded in 2024, indicating a competitive landscape.

Lanark is also experiencing heightened activity. So far in 2025, 58 homes have changed hands, reflecting a 45% increase from the 40 sales recorded in 2024. The average sale price has seen a modest uptick of 0.68%, rising to $559,354 from $555,598 last year. Notably, 18.2% of homes have sold above the list price, a significant jump from 11.6% in 2024, highlighting increased buyer competition. However, properties are taking longer to sell, with the CDOM increasing to 65 days from 54.

These numbers suggest a resilient market in both Ottawa and Lanark. Ottawa continues to see steady appreciation and buyer confidence, while Lanark is experiencing robust demand despite longer selling times.

Looking Ahead: Potential Impact of U.S. Tariffs

One factor that could influence the market in the coming months is the political landscape in the U.S. Former President Donald Trump has paused the potential tariff increases on Canadian goods. While details remain uncertain, these tariffs could drive up costs for construction materials, impacting new home builds and renovations. Additionally, economic uncertainty surrounding trade relations may influence consumer confidence and investment decisions, particularly for those considering real estate purchases. The recent lower interest rates has seen a flurry of activity and we can hope it continues.

As with any major policy shift, the full impact remains to be seen. For now, buyers and sellers should keep an eye on economic indicators and market trends to make informed decisions.

Check out the latest in mortgage rates here:

Bank of Canada Rates