Is 2025 the Right Time to Upgrade Your Family Home? Ottawa’s Market Trends Hold the Answer

For families in Ottawa dreaming of more space, better schools, and a neighborhood that feels like home, the 2025 real estate market offers new opportunities. If you’ve outgrown your current home and are ready to upgrade, understanding the latest market trends can help you make a smart move.

Here’s what to know about Ottawa’s real estate market as the new year begins.

A More Balanced Market for Buyers

Ottawa’s real estate market closed 2024 with signs of improvement. December saw a 7.9% increase in home sales compared to the previous year, a positive shift after a period of hesitation among buyers. While sales remain below historical averages, the rise in activity signals renewed confidence.

Active residential listings soared by 58.7% year-over-year, giving buyers more options to explore. For growing families, this means a greater chance to find a home with the extra bedrooms, backyard, or proximity to better schools that you’ve been looking for.

How Are Prices Trending?

Price trends are encouraging for those moving up the property ladder. The benchmark price for single-family homes in Ottawa rose to $729,300, up 3.7% compared to December 2023. Townhouses saw even more growth, with a benchmark price of $533,200, a notable 11.3% increase. Apartments, meanwhile, dipped slightly to $404,400, down 2.5%.

If you’re planning to sell your current home and upgrade, these trends work in your favor. You can maximize your sale price while investing in a property that better suits your family’s needs.

Favorable Mortgage Conditions

Late 2024 brought consecutive interest rate reductions, higher insured mortgage limits, and extended amortization options. These changes make upgrading to a larger home more attainable. With more flexible mortgage terms, you may find it easier to align your budget with your family’s goals for a new home.

Inventory Is Expanding

December 2024 saw 3,216 active listings, a sharp increase from the year before. This growing inventory gives families more options to explore. However, challenges remain-affordability is still an issue for many, and homes in sought-after neighborhoods with great schools remain highly competitive.

What to Look for in Your Next Home

If your family is preparing to make a move, here are some factors to prioritize:

1. Space to Grow: Look for homes with additional bedrooms, larger living areas, and outdoor spaces to accommodate your family’s changing needs.
2. Top-Rated Schools: Research neighborhoods known for excellent schools to set your children up for success.
3. Long-Term Potential: Think ahead-choose a home that will meet your needs for years to come to avoid future moves.
4. Neighborhood Amenities: Proximity to parks, grocery stores, and family-friendly activities can enhance your daily life.

Why 2025 Could Be the Right Time

Experts are cautiously optimistic about Ottawa’s market in 2025. According to the Ottawa Real Estate Board, improving conditions like growing inventory and favorable mortgage terms are creating opportunities for families ready to upgrade. While affordability and supply challenges remain, the first half of the year could be a golden window to find your next home.

Steps to Take Now

1. Evaluate Your Current Home: Get an updated assessment of your home’s value to understand how much equity you can use for your next purchase.
2. Explore Mortgage Options: Work with a lender to see how recent rate changes could expand your buying power.
3. Start Watching Listings: With more homes hitting the market, this is a great time to familiarize yourself with properties in neighborhoods that match your wishlist.

2025: A Year for Big Moves

Ottawa’s market is shifting, creating new opportunities for families looking to upgrade. Whether you’re searching for more space, better schools, or a community that feels just right, this could be the year to make your move.

If you would like help reaching your real estate goals in 2025 click here to contact our team.