Based on insights from the Canadian Real Estate Association (CREA) and the Ottawa Real Estate Board (OREB), here are some key expectations for the year ahead:
1. Moderate Price Increases
CREA and OREB predict a gradual rise in housing prices, with year-over-year growth estimated at 2.5% to 3%. Single-family homes and townhouses are expected to drive this growth due to sustained demand, while apartment prices may increase at a slower rate as buyers prioritize larger living spaces.
2. Higher Sales Activity
Home sales are anticipated to climb by 5% to 6%, bringing renewed activity to the market. Key factors contributing to this uptick include:
Reduced interest rates
Government initiatives, such as extended mortgage amortizations and higher insured mortgage limits
These measures aim to make homeownership more accessible, especially for first-time buyers.
3. Ongoing Supply Challenges
Despite more active listings, shortages persist in specific segments, particularly detached family homes. Most new developments focus on multi-family units and rental properties, limiting affordable options for entry-level buyers. This imbalance may lead to increased competition in the lower-price brackets.
4. Shifts in the Rental Market
Strong population growth and immigration will continue to fuel demand for rental properties. Projections for Ottawa’s rental market include:
Low vacancy rates
Rising rental prices
For property investors, this creates opportunities for consistent rental income and long-term asset growth.
5. Suburban Appeal
Suburban neighborhoods like Kanata, Barrhaven, and Orléans will remain highly desirable. These areas offer:
Affordable housing options
Flexibility for remote work
Developers are prioritizing these regions to meet increasing demand, making them key growth areas in 2025.
6. Economic and Policy Influences
A stabilizing economy and steady interest rates are expected to foster a favorable environment for real estate transactions. However, affordability challenges will likely persist, especially for first-time buyers navigating high property prices.
