May 2025 new-home sales were up from April, but they are still below average, indicating there’s improvement but still a ways to go, according to PMA Brethour Realty, which prepares monthly reports on the Ottawa new-home market on behalf of the Greater Ottawa Home Builders’ Association.
There were 315 sales in May. That’s up 28 per cent from April, when there were 245 sales, but down 11 per cent from May 2024, when the number stood at 355.
Just over a month after the federal election, “we’re seeing signs of renewed stability in Ottawa’s new-home market,” says Cheryl Rice, president of PMA Brethour’s Ottawa office. “Sales improved compared to the previous month, thanks to greater political clarity and relatively calm U.S. relations.
“While activity is still down year over year, spring 2024 didn’t have the uncertainty that came with this year’s election cycle. The good news is that — with the election behind us and no shocking policy headlines — momentum is building, and we expect that trend to continue into summer.”
She notes that the federal government’s first-time homebuyer rebate has also helped inject optimism among hesitant buyers.
“An area to watch is jobs. Ottawa’s economy is closely tied to federal employment, and ongoing layoffs — even if gradual — have likely contributed to some buyer hesitation. Add high interest rates and a tough mortgage stress test, and many would-be buyers are still waiting for better affordability before jumping in.”
That’s reflected in a weaker than average performance in the market. The five-year average for May sales is improving, but it’s still below the average of 322. And the year-to-date sales remain well below the five-year average (1,418 versus 1,747).
Among the sales we did see in May, there were some standout sales performances. Minto Communities led the way with 37 sales across its Weavers Way and Brookline communities, Rice notes. Glenview Homes also saw a strong debut at Union West in Stittsville, with eight sales during its first month on the market. “Interestingly, for the first time in a while, Ottawa’s south and west ends were neck and neck in terms of market share — something to watch as we move into the heart of the season.”
And a key contributor to May sales was Minto’s new releases across the city, especially in the west end. “The builder, who generates on average 53 sales a month, almost doubled their regular sales in May,” Rice says. “Their single releases were accompanied by an estimated $90,000 to $100,000 price reduction, which led to those homes outselling their townhomes — a rare occurrence in today’s market.”
