Is It a Good Time to Buy a House in Ottawa? Here’s What You Need to Know in 2025

Buying a home is one of the biggest financial decisions you’ll make—and timing it right can mean the difference between a great deal and overpaying. So the big question remains: Is it a good time to buy a house in Ottawa right now?

The short answer: it depends—on your financial readiness, market conditions, mortgage rates, and your long-term goals. But in this article, we’ll break down the 2025 Ottawa real estate market to help you make an informed decision.

Ottawa Real Estate Market Overview (2025)

Ottawa has long been considered one of Canada’s most stable and livable cities, with strong employment (especially in government and tech), relatively affordable home prices compared to Toronto or Vancouver, and a balanced quality of life.

In 2025, however, the market has become a bit more complex:

Home prices are showing mild increases compared to 2023–2024 lows.
Inventory levels have improved, giving buyers more selection.
Mortgage rates remain high, but some analysts predict potential cuts later this year.
Buyer demand is returning, especially for move-in-ready single-family homes and townhomes.

📊 According to the Ottawa Real Estate Board (OREB), the average residential home price in Q2 2025 was approximately $725,000, up 3.2% year-over-year.

When Is the Best Time to Buy in Ottawa?

Ottawa real estate follows a predictable annual cycle:

Spring (March–June): Highest inventory, most competition, typically higher prices.
Summer (July–August): Inventory remains, but competition softens.
Fall (September–November): Great time for buyers—less competition, motivated sellers.
Winter (December–February): Slowest season, good for finding bargains if you can wait out the snow.

⏳ 2025 Insight: If you’re financially ready, late summer to fall could be the best time to buy in Ottawa before interest rates drop and buyer activity ramps up again.

Pros of Buying a House in Ottawa Right Now

1. Increased Inventory = More Choice

The market is no longer as tight as it was in 2021–2022. Buyers can now:

Take time to compare options
Negotiate pricing or conditions
Avoid extreme bidding wars

2. Motivated Sellers

Some sellers are carrying higher mortgage payments and are looking to offload quickly. That means:

More price flexibility
Higher chance of getting home inspections approved
More favorable closing terms

3. Stable Economic Fundamentals

Ottawa continues to be buffered by:

Federal government jobs
Growing tech and health sectors
Low unemployment
Population growth and immigration driving long-term demand

See Ottawa’s economic outlook for 2025

Cons of Buying a Home in Ottawa Right Now

1. Mortgage Rates Are Still High

Average 5-year fixed mortgage rates are hovering around 5.49–5.89% in mid-2025. That reduces affordability significantly for many buyers.

Use this mortgage affordability calculator

2. Price Recovery in Progress

Prices have climbed back slightly from the post-COVID correction. If rates fall, we may see further appreciation—meaning now might be the low point for the year, but not necessarily forever.

3. Land Transfer Taxes and Closing Costs

These remain high and must be budgeted for:

Ontario Land Transfer Tax
Legal fees
Inspection costs
Moving expenses

Should You Wait or Buy Now in Ottawa?

Situation	Buy Now	Wait
You’ve secured a fixed-rate pre-approval	✅	❌
You’re upgrading to a larger home	✅	❌
You’re an investor waiting for better ROI	❌	✅
You’re unsure about long-term employment in Ottawa	❌	✅
You’re planning to flip in under 2 years	❌	✅
You’re financially stable and found a home you love	✅	❌

Tips for Buyers Entering the Ottawa Market in 2025

Get a pre-approval: Lock in your rate for 90–120 days.
Shop for homes under your max budget: Rates impact monthly payments more than most people realize.
Work with a local agent: They understand the nuances of each neighborhood—from Hintonburg to Orleans.
Consider new construction: Builders are offering incentives, upgrades, and extended rate holds.
Look at surrounding regions: Explore Arnprior, Carleton Place, or Kemptville for better value.

Neighborhoods to Watch in Ottawa (2025)

Barrhaven: Family-friendly, with ongoing new builds and strong schools
Kanata: Tech sector employment hub and tons of modern townhomes
Centretown & The Glebe: High-demand walkable urban core
Orleans: Great for larger families, highway access improved
Manotick & Greely: Semi-rural luxury builds with space and privacy

Common Buyer Questions in 2025

Is Ottawa a buyer’s or seller’s market right now?

It’s leaning toward balanced, with some neighborhoods favoring buyers, especially outside the core.

Will prices drop again?

Unlikely. Experts expect modest growth or stability as interest rates gradually decrease.

Should I go variable or fixed?

Most advisors currently recommend short-term fixed if you expect rates to fall in 2026.

Final Thoughts: Is It a Good Time to Buy a House in Ottawa?

If you’re financially prepared, plan to live in your home long-term, and find a place that fits your needs—then yes, 2025 is a great time to buy in Ottawa. You’ll benefit from:

Better selection
Motivated sellers
Less competition
Potential upside as rates decline in late 2025 or 2026

Waiting could mean missing out on favorable inventory or getting priced out when the market rebounds fully.