Underbidding Becomes the Norm in Ottawa as Market Cools

In Q3, every Ottawa neighbourhood in Wahi’s analysis saw homes selling below asking, with a median price gap of $10,000 as market conditions remained subdued.

By Kristin Doucet | 2 minute read

Ottawa’s housing market softened further in Q3 2025, with all 100 neighbourhoods in Wahi’s analysis recording below-asking sales from July through September. The median difference between list and sold prices was -$10,000, a subtle but consistent sign of shifting buyer behaviour and more negotiation power at play.

That’s a meaningful shift from earlier this year, when some neighbourhoods held closer to list price, or even above, in Wahi’s Q2 analysis.

According to the RPS–Wahi House Price Index, Ottawa home prices rose 4% year-over-year in September, matching the pace seen in July and August. While prices remained stable through Q3, other indicators pointed to a market slowdown. In October 2025, the average total days on market rose to 54 days, up from 39 days in October 2024. This metric includes homes that were temporarily removed from the market and relisted shortly after. At the same time, active listings increased to 4,299, compared to 3,933 a year earlier. Together, these signs suggest buyers had more time and negotiating power heading into the fall.

The steepest price differences between list and sold prices appeared in a mix of higher-priced and rural fringe neighbourhoods, where buyer pools tend to be smaller and list prices more variable. In Corkery, homes sold for a median of $57,000 below list price. Other areas with larger under-ask gaps included Lindenlea (-$45,750), Constance Bay (-$40,000), and Carp Ridge (-$39,888), each seeing differences of more than $35,000.

While these areas vary in price point and geography, they reflect where sellers may be adjusting expectations more significantly in response to limited demand or increased time on market.

What This Means for Buyers and Sellers
The median $10,000 difference between list and sold prices in Q3 reflects continued buyer caution and more pricing flexibility. For buyers, that meant a bit more room to negotiate, especially in outlying or higher-priced areas. For sellers, it underscored the importance of pricing homes competitively, as overambitious list prices may sit longer or see price reductions.

How Wahi Ranks Ottawa’s Overbidding and Underbidding Neighbourhoods

Each quarter, Wahi compares the differences between median list and sold prices to determine whether neighbourhoods are in overbidding or underbidding territory, excluding those neighbourhoods with fewer than five transactions over the study period.

A total of 100 neighbourhoods out of Ottawa’s approximately 100 met this threshold in Q3, down from 103 in Q2. Data is sourced from the Ottawa Real Estate Board and Information Technology Systems Ontario.

The top overbidding and underbidding neighbourhoods are ranked by the median overbid or underbid amount. The median overbid and underbid amounts are calculated by subtracting the list price from the sold price of each listing in a given neighbourhood. These are then ranked by the median of all subtractions and presented as the median overbid or underbid amount.