Is May 2025 a good time to buy a home in Ottawa? It depends on what you’re buying and why. The market is shifting, but not in a single direction. Detached homes and condo apartments are telling two slightly different stories.

Detached homes: Sellers still call the shots, for now

Ottawa’s detached housing market remains a seller’s market, but it’s loosening. Inventory has improved. Months of inventory increased from 2.1 to 3.8 year-over-year, representing an 81% rise. That means more choice for buyers and less urgency. Purchase demand is down 16%, and active listings are up 46%.

Still, sellers have leverage. The benchmark price is $703,200, down 1% in the past three months, but the median price is $795,000, up 6% over the same period. This suggests more higher-priced homes are changing hands.

If you find a good property and can hold it long term, this may be a reasonable entry point. Just don’t expect a deep discount.

Apartments: A more balanced playing field

The condo apartment market is far more even-handed. It’s technically a balanced market, but trends are tilting toward buyers. Months of inventory nearly doubled from 2.7 to 5.5, and the supply of active listings has surged 96%. Demand has dipped slightly, down 4%.

Prices reflect this cooling. The benchmark price is $404,000, down 8% in the past three months. The median sits at $400,000, up 4%, suggesting some resilience at the midrange.

If you’re buying an apartment, you’re in a better position to negotiate. The fundamentals favour patience and selectivity.

Market sentiment: Confidence is rising

Buyer psychology is shifting. Confidence that prices will be higher in a year has rebounded sharply, from a low of 27.04 in April to 39.41 in the latest Nanos poll. Historically, confidence and price growth move in tandem.

If the pattern holds, prices may tick upward in late May or June before the usual summer lull. Waiting might cost you more, especially if sentiment keeps climbing.

Bottom line

If you’re shopping for a detached home, inventory is improving, but sellers still have the edge. Be selective.

If you’re buying a condo, the timing favours you. Negotiate hard.

In both cases, rising confidence could lift prices in the near term, so if you’re serious, act soon, but stay disciplined.