From the blog...

Annual Real Estate Report Ottawa

Posted on: January 15th, 2025 by Chris Scott

Key factors and predictions for Ottawa’s housing market

This year is set to be a pivotal year for Ottawa’s real estate market, influenced by local and national factors. With a federal election on the horizon as early as April, a shift to a Conservative government could bring policy changes, including potentially cost cutting in our federal government. Any job losses will have a negative impact on the market. There is also hope that efforts will be made address Ottawa’s slow building permit process. While improvements in housing development may take time, these changes could lay the groundwork for future growth.

On the economic front, easing inflation and anticipated interest rate cuts—potentially two small reductions early in the year—are expected to boost buyer demand. However, economic uncertainty remains, with potential U.S. tariffs under Trump that could impact Canada’s economy.

For Ottawa real estate, low inventory and rising demand could be shaping things towards a slight seller’s market by Spring. Despite challenges like higher mortgage renewal rates, housing prices are predicted to increase by 4–6% this year. Buyers may find great opportunities early in the year, while sellers can expect good selling conditions throughout 2025. If you are planning to move its a great time to strategize and prepare for this dynamic market. Whether you’re planning a move soon or later this year, now is a great time to strategize and prepare for this dynamic market.

Inflation

In 2024, Canada’s inflation rate experienced a significant decline, reaching 1.9% in November, down from 2.0% in October.

In my opinion, the bank of Canada overreacted originally when they hiked rates too fast and now they are bringing them down quickly. Canada also includes mortgage interest in their inflation calculation (Iceland is only other country to do so). So when they were hiking rates to lower inflation the higher interest rates also kept inflation higher. I am no economist but that sounds counterintuitive.

Looking ahead to 2025, the Bank of Canada projects that inflation will remain near its 2% target, with forecasts suggesting a slight decrease of 0.2 percentage points, reflecting a lower assumed path for energy prices.
This anticipated stability in inflation is expected to support economic growth, with GDP projected to expand around 2% over 2025 and 2026.

Market Dynamics Across Ottawa

Ottawa’s real estate market in 2024 showcased diverse conditions depending on the area. Older neighbourhoods like Westboro, Glebe, and some central areas had high demand and limited supply giving sellers the upper hand. In some suburbs such as Barrhaven everything leaned toward a buyer’s market, thanks to abundant new construction that gave buyers more options and leverage. Meanwhile, areas like Kanata, Stittsville, and Orleans found a middle ground, achieving balanced market conditions with steady supply and demand driven by desirable amenities and a mix of housing options. These trends highlight the importance of understanding local dynamics to navigate Ottawa’s complex real estate landscape.

Population Growth

Ottawa’s population has been experiencing steady growth in recent years. As of 2024, the city’s population is estimated at approximately 1,451,570, reflecting a growth rate of 1% from 2023. Looking ahead, projections indicate that Ottawa’s population will continue to rise. The City of Ottawa anticipates an increase of approximately 238,540 residents from 2018 to 2035, bringing the total population to 1.6 million by 2035. Our building department is not the best. This sustained population growth is expected to drive demand in the real estate market, influencing housing availability and pricing. As more individuals and families choose to make Ottawa their home, the city’s real estate landscape will continue to evolve, presenting both opportunities and challenges for buyers, sellers, and investors.

BOC Policy Rate % Inflation Rate%

Interest Rate Changes

In 2024, the Bank of Canada (BoC) implemented a series of interest rate cuts, reducing the policy rate from 5% in late 2023 to 3.25% by December 2024. This monetary easing aimed to stimulate economic growth amid rising unemployment and global economic uncertainties. The real estate market responded positively, with increased buyer activity and a modest rise in home sales, as lower borrowing costs improved affordability. Looking ahead to 2025, the BoC is expected to continue its gradual approach to monetary policy, with forecasts suggesting the policy rate could reach approximately 2.25% by year-end.

PERSONAL NOTE

As I look back on this past year, I can’t help but feel a mix of pride and gratitude. This year marks 20 years since I started in real estate—a milestone that feels both surreal and humbling. I’ve been incredibly lucky to have so many of you trust me to help with one of the biggest decisions in your life. The real estate market has been a bit of a rollercoaster this year. Shifts in interest rates and changing buyer priorities kept us on our toes, but it was also a year filled with opportunities to help clients navigate these challenges and find homes they love. Our team accomplished so much together. From hosting client events and fundraisers to helping military families settle into new homes during HHTs, we focused on building strong relationships and making the process as smooth as possible for everyone we worked with. Hitting 20 years in this business has made me reflect on how much I truly love what I do. It’s not just about houses—it’s about the people, the stories, and the relationships. Each one has shaped my career and kept me passionate about real estate. Thank you for your trust, your referrals, and for making this job so rewarding. Here’s to the last 20 years and everything the future has in store. I can’t wait to keep working with you and seeing where the next chapter takes us.

    
 
 
        
   Anny Metivier 
 2024-08-13
 
 
  Over the years, with multiple military moves, we’ve had the opportunity to work with many real estate agents, and we can confidently say that not all are created equal. Chris, by far, has been the most trustworthy and easiest real estate agent we’ve had the pleasure to work with.
  
 
       
   Jake Moffat 
 2024-06-07
 
 
  Colin has been the best realtor to work with and helped us buy a great house in the perfect neighborhood. Colin and the rest of the team at Chris Scott were incredibly helpful the whole way and always available to answer questions, show us houses at a time that was convenient for us and were just generally professional and friendly during the whole process. We will recommend Colin and the team to our friends and family.
  
 
       
   Faith Woodley 
 2024-03-13
 
 
  I was a co-Executrix of an estate, and we had a condo that we had to sell for the estate.  In order to get the property ready for sale, we had to have the over 5,000 square foot condo painted and the carpets replaced.  Since the property was empty, Chris recommended a home stager that he uses on properties that require these services, and she did a fantastic job of staging the condo. It took the condo to the next level. The condo sold for a phenomenal price, and we were very happy with Chris Scott and his abilities.  He always gives over 100 percent to get the job done!  I recommend him to anyone that requires the services of a great real estate agent.
  
 
       
   Emily Bozanich 
 2023-10-07
 
 
  We worked with Rachel and she was beyond diligent. She is so organised and meticulous with details, it really helps when buying a home. She even agreed to do a virtual walk through for the home we ended up buying because we weren’t going to get there ourselves prior to offers being reviewed. She was also great with recommending areas to consider and avoid. Highly recommend.
  
 
       
   Cy Dixon 
 2023-10-06
 
 
  Rachel was amazing. She helped me find the perfect home for me and my son during a challenging time in my life. She was extremely patient and empathetic, professional and knowledgeable. I highly recommend her. No one will work harder for you than Rachel.
  
 
       
   Jeff C 
 2023-10-06
 
 
  Awesome realtor team very helpful and knowledgeable
  
 
       
   Nathalie Groupe Godin 
 2023-10-06
 
 
  Great service. Very knowledgeable. Super helpful. I’d use this team again.
  
 
       
   D Hynders 
 2023-10-05
 
 
  I recently used Chris' team to purchase a new house and I have to say that it was a pleasure to work with them.
  
 
       
   Megan Bixby 
 2023-10-05
 
 
  My husband and I purchased a house in the surrounding Ottawa area with the assistance of Colin from this group of individuals. We unfortunately were left with no choice but to purchase a home sight unseen due to our work circumstances. We originally considered not purchasing because of this.
We deliberated and chose to purchase a home after participating in FaceTime showings and we could not have been more satisfied. Colin was objective, professional, calm, informative, and realistic. He listened to our needs and helped us choose our home. The fact that we were pleasantly surprised, and a year later remain pleased as punch, says everything about how talented this company is. Will, without a doubt, use this company when we leave Ottawa.
  
 
       
   André Desjardins 
 2023-10-04
 
 
  We worked with Chris to find a home back in 2011 that would suit our desire to be close to work. He was nothing but professional and courteous! Listening to our needs and showing us what we were looking for. Years later, when we thought about down sizing and finding a renovated home, he took us around to see some in the neighborhood. He always open to helping us out in our searches

From the blog...

Annual Real Estate Report Ottawa

Key factors and predictions for Ottawa’s housing market

Leave a Reply