Ottawa Housing Market
2025 Closes on a Note of Stability
Ottawa’s housing market closed out 2025 with a typical December slowdown in activity, reinforcing the cautious but steady tone that emerged this fall.
Sales softened further toward year end, inventory levels declined seasonally, and prices remained broadly stable. Despite a quiet finish in November and December, total residential sales in 2025 finished 1.3% higher than 2024, while total dollar volume rose 4.1%, pointing to a year defined by balance rather than volatility.
The year followed an unconventional seasonal pattern, beginning with a delayed spring, transitioning into a steady summer that avoided the usual mid year dip, and moderating again through the fall and early winter.
Ottawa continues to show resilience compared with the sharper price corrections seen in some larger Canadian markets. December data reflects a market that is holding steady, offering buyers more choice while maintaining generally stable conditions. Performance, however, continues to vary meaningfully by property type, with the condominium segment remaining the softest area of the market.
“Even with a quieter finish to the year, Ottawa’s housing market showed real stability in 2025,” said Tami Eades, President of the Ottawa Real Estate Board. “Sales and dollar volume both surpassed 2024 levels despite more moderate conditions through the fall. That balance points to a market driven by fundamentals, not pressure.”
Residential Market Activity
In December, 587 residential properties sold, down 32% from November but consistent with typical December activity when excluding the unusually strong pandemic markets of 2020 and 2021. Since 2018, average December sales, excluding those two years, have been 583 units. While the slowdown reflects normal seasonal patterns, it also signals continued buyer caution.
On the supply side, new listings declined as expected, and active listings fell from 3,628 in November to 2,544 in December, reflecting the usual holiday season slowdown. Even so, inventory levels remain elevated compared with recent December norms, continuing the fall trend of increased choice for buyers.
Since 2022, Ottawa has experienced a multi year trend toward higher year end inventory across all property types. While seasonal absorption typically limits a sharp buildup of listings in December, it has not fully offset the increased volume of inventory entering the market earlier in the year. Year to date active listings in December 2025 were 19% higher than last year, 45% higher than 2023, and 89% higher than 2022. Months of inventory rose to 4.3, higher than last December and closer to long term, pre pandemic averages.
Prices and Market Balance
Prices remained relatively stable in December. The average residential sale price was $658,943, essentially unchanged from December 2024. This follows November’s modest year over year increase and reflects a market where prices are being supported but not pushed higher.
The MLS® Home Price Index provides additional insight. The composite benchmark price has declined month over month since the summer, yet still finished 2025 slightly above 2024 levels overall. This suggests that price adjustment is occurring gradually at the benchmark level, even as average prices continue to be influenced by the mix of homes sold.
Overall, the market remains balanced. Buyers have more leverage than in recent years, while sellers continue to benefit from steady demand and resilient pricing.
Property Type Breakdown
Market conditions continue to vary meaningfully by property type.
Single Family Homes
Detached homes continued to outperform townhomes and apartments in December. Prices remained comparatively stable, with supply balanced at 4.3 months of inventory. The single family benchmark price posted a 0.4% year over year increase, underscoring the resilience of this segment.
Limited availability and consistent demand continue to support detached homes, which remain the anchor of Ottawa’s market stability.
Townhomes
Townhomes continue to adjust as inventory levels remain slightly elevated. Sales activity has been more resilient than in the apartment segment, though pricing pressure is becoming more apparent. The townhouse benchmark price declined 3.7% year over year, while the average sale price fell just 1.4%. This gap suggests that softness has been more pronounced at the benchmark level than in actual transactions.
Sustained interest from first time buyers, who continue to view townhomes as an accessible entry point, has helped support average and median prices.
Apartments Condos
The apartment segment remains the softest area of the Ottawa market. December data reinforced trends seen in November, with subdued sales activity and months of inventory climbing to nearly eight, well above balanced levels.
The apartment benchmark price declined year over year, reflecting growing supply relative to demand. While Ottawa has not experienced the level of condo oversupply seen in larger urban markets, this segment remains one to monitor closely.
Months of Inventory by Property Type
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Single Family Homes: 4.3
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Townhomes: 2.8
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Apartments Condos: 7.9
Looking Ahead
As Ottawa enters 2026, December’s data suggests that any improvement in activity is likely to be gradual rather than immediate. Interest rate relief has helped support confidence, but buyers continue to move carefully, watching broader economic conditions closely.
While close monitoring of the oversupplied condo apartment segment remains important, the broader message for REALTORS® and consumers is consistent. Ottawa’s housing market remains stable, segmented by property type, and increasingly shaped by fundamentals rather than urgency.