The April Spring Real Estate Update: Prices, Rates & a Musical Chairs Market

The Ottawa Real Estate Board has released their statistics for last month (March 2025) and it looks like while low interest rates are drawing in value-conscious buyers, inventory continues to creep up into buyers market territory which is creating a bit of a “musical chairs” dynamic that I will elaborate on below.

First though, let’s look at March’s key numbers from the OREB report:

• The benchmark price for single-family homes was $698,700, up 2.7% year-over-year in March.
• On the other hand, the benchmark price for a townhouse/row unit was $431,200, a decline of 8.0% from 2024.
• The benchmark apartment price was also down to $400,900, a 4.3% decline from the previous year.

Listings are also up significantly over last year.

• Active residential listings totaled 4,319 units at the end of March 2025, reflecting a substantial 60.3% surge from March 2024. Active listings were 92.7% above the five-year average and 49.5% above the 10-year average for the month of March.
• Months of inventory stood at 3.9 at the end of March 2025, compared to 2.3 in March 2024. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

My analysis:

The good news here is that low interest rates are really improving affordability. I am seeing buyers getting rates of 4% or less in some cases, and that is starting to bring the price of buying back to the point where it is comparable to renting.

For example, if you qualify for a 4% mortgage rate* and can bring 20% down, the payments on a listing like this cute 3 bedroom townhome would only be $1,805 per month on a 25 year term. Even if you add in the condo fee ($491/month) you are looking at a price that is lower than recent rental prices for similar units nearby.

But while demand has been solid for the first part of the spring market, I believe there is a bit of a game of “musical chairs” playing out in the market right now – there are more listings right now than buyers, and as more buyers get matched with homes, there may not be enough demand left to support all the remaining listings. That could mean a long, quiet summer for unsold properties.

So my advice – If you are thinking of selling in 2025 then time is of the essence so you can take advantage of the spring market which is still ramping up. If you are thinking of buying, now is a great time to scoop up a home – we are three years after the peak of the market and interest rates mean that homes are cheaper than they have been for quite some time.

Best,

Chris Hendricks

P.S. If you are thinking of selling your home in 2025, the first step is to find out what your home will sell for so you can budget for your move and figure out how much you can spend on your new home. That’s why I’m happy to offer subscribers a FREE no commitment estimate of your home’s value, so you can confidently plan your next move and know exactly what you can afford for your new home. Click here to get your free home value estimate. 

* Mortgage rates vary, talk to your Bank or Mortgage Broker