Much like we saw in the resale market, March 2025 new-home sales slipped in the face of economic uncertainty and the upcoming federal election.
There were 291 new-home sales in March, down 4.3 per cent from the 304 sales in March 2024, according to the latest report prepared by PMA Brethour Realty on behalf of the Greater Ottawa Home Builders’ Association. But sales held steady for the year to date, with 858 so far this year versus 851 last year, a difference of less than one per cent.
“March’s monthly and year-to-date new-home sales remained stable, despite ongoing political and economic headwinds,” says PMA Ottawa president Cheryl Rice. “Continued concerns around job stability — particularly among employees of U.S.-based companies — have led many potential buyers and sellers to adopt a more cautious wait-and-see stance.”
Sales were well under the five-year average of 362 and the 10-year average of 420 for the month.
“Ottawa’s market recovery has lagged earlier expectations, and the overall outlook remains cautious,” Rice says. “The trajectory in the coming months will depend heavily on external factors, such as the potential economic impact of reciprocal U.S. tariffs announced on April 2 and the upcoming federal election on April 28 — both of which could influence market confidence and recovery.”
Affordability remains a key concern as well, as evidenced by the continued popularity of more affordable townhomes and condo towns. Between them, they captured 74 per cent of the market in March, while single-family homes garnered just 25 per cent of sales. Traditionally, towns and singles have shared a relatively equal portion of the market.
“Affordability remains a top priority for many buyers,” Rice notes. “While interest in single-family homes is growing, price points remain a barrier for many, reinforcing the importance of affordability in shaping purchase decisions.”
While the expected market recovery has stalled, she also notes that lower interest rates, stronger buyer traffic and recent policy developments — including the March 12 interest rate cut to 2.75 per cent and a proposed GST exemption for first-time buyers purchasing homes priced under $1 million — “could contribute to a steady pace of sales, if not growth.”
