Real Estate Market Analysis for March 2025

Spring is typically one of the busiest seasons in real estate, but this March, Peterborough’s housing market is telling a slightly different story. While prices remain relatively stable, the pace of sales has slowed, and inventory levels are climbing. Whether you’re thinking about buying, selling, or just keeping an eye on the local market, here’s what the latest data means for you.

Sales Volume Takes a Hit

The average number of home sales in March 2025 dropped to 75, down significantly from 97 sales in March 2024—a 22.7% decline year over year. This is one of the more notable trends in this month’s report.

Several factors may be contributing to this cooldown in activity:

Interest rates, while more stable than last year, are still relatively high, and some buyers may be waiting on the sidelines in hopes of future cuts.
Affordability continues to be a challenge, especially for first-time buyers.
Some buyers and sellers may simply be waiting for the usual spring rush to pick up before making a move.

While this slowdown may seem concerning, it’s important to remember that the market is still adjusting after several years of extreme fluctuations. What we’re seeing now could simply be a return to more balanced, sustainable conditions.

Broader Economic Uncertainty is a Key Factor

One of the biggest influences on the current market isn’t just interest rates or inventory levels—it’s growing economic unease at the national and international level.

Canada is currently bracing for a period of economic uncertainty. The U.S. has recently imposed a new round of tariffs on Canadian goods, which is expected to impact several key industries and could trickle down to consumer confidence. These trade tensions come at a time when economists are warning of a possible recession on the horizon. With inflation still stubborn and the Bank of Canada taking a cautious approach to rate cuts, many Canadians are treading carefully when it comes to major financial decisions—including real estate.

This uncertainty can help explain why even as inventory grows and prices hold steady, buyers are hesitant to jump into the market. They’re watching rates, waiting on economic news, and looking for stability before making their move.

Home Prices Holding Steady

Despite the lower number of sales, home prices in Peterborough have remained stable. The average sale price in March 2025 was $650,011, a slight increase of 0.5% over the March 2024 average of $646,837.

This small year-over-year uptick in price, despite fewer transactions, suggests that sellers are holding firm on their pricing and that demand—while quieter—is still present. For sellers, this is a reassuring sign that property values remain strong, particularly for well-maintained homes in desirable neighbourhoods.

Inventory on the Rise

One of the most significant changes this March is the increase in active listings. In 2025, there were 162 homes listed for sale, compared to just 91 listings in March 2024. That’s a 78% increase in inventory.

This means buyers have more choice and less competition—welcome news after years of bidding wars and tight supply. However, it also means sellers need to be more strategic. With more properties on the market, buyers are being selective. Homes that are priced too high or not presented well may sit longer or receive fewer offers.

Days on Market: Still Reasonable

Despite all this, homes in Peterborough are still selling at a healthy pace. The average number of days on market was 31 in March 2025. That’s relatively brisk, especially when compared to more sluggish markets in other parts of Ontario.

This tells us that buyers are out there—they’re just being a little more cautious and taking their time to make the right decision.

What This Means for Buyers and Sellers

Buyers:

You’re in a better position than you were a year ago. More listings mean more options, and stable prices allow for more predictable budgeting. If you’ve been waiting for the right time to jump into the market, this could be your moment, especially before any anticipated rate drops later this year, which could reignite competition.

Sellers:

You can still achieve strong sale prices, but presentation and pricing are more important than ever. Work with a real estate professional to make sure your home is positioned properly in today’s more competitive landscape. It’s no longer enough to just list and wait—strategic marketing matters.

The Peterborough real estate market in March 2025 is reflective of a nationwide mood of caution. Sales are down, but prices are holding steady. Inventory is up, offering buyers more breathing room. And in the background, economic uncertainty—from global trade tensions to domestic recession worries—is creating hesitation.

If you’re thinking about buying or selling, reach out to discuss how these market changes may impact your plans. Staying informed is the best way to make confident real estate decisions! Looking for a reliable and knowledgeable REALTOR®? We always have an agent on duty to help. Call our office at 705-743-4444 and we will be happy to direct you to a REALTOR® to answer your questions.

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