Ottawa’s residential real estate market began 2026 in balanced territory, offering more choice for buyers while continuing to reward sellers who price accurately and remain patient. With higher inventory levels compared to recent years and modest price adjustments across most housing types, January’s data points to a market finding its footing rather than one under significant pressure.
Market Overview
Inventory levels across Ottawa remain elevated, giving buyers increased selection and negotiating flexibility. At the same time, sellers are adapting to a market where realistic pricing is essential. Benchmark prices are down year over year across all residential property types, with the most softness seen in townhomes and apartments. Detached homes continue to show greater price stability.
Overall, the Ottawa housing market is operating more evenly than it has in recent years, aligning more closely with long-term, pre-pandemic conditions.
Ottawa Residential Market Activity
In January, 610 residential properties sold in Ottawa. While this reflects a typical post-holiday slowdown, it also signals a steady start to the year. Sales were 5.6% lower than January 2025 but remained within historical norms for this time of year, indicating that buyer demand is still present.
The average residential sale price in Ottawa was $641,436, down 4.5% year over year. This decline is consistent with seasonal trends and a more price-conscious buyer pool. Recent interest rate reductions are beginning to ease affordability pressures, with early signs showing increased buyer engagement, even if that activity has not yet fully translated into completed sales.
MLS® Home Price Index Trends
According to the MLS® Home Price Index, benchmark prices across single-family homes, townhomes, and apartments declined modestly month over month in January. These small adjustments suggest market stabilization rather than renewed weakness.
Supply, Inventory, and Market Balance
New listings totalled 1,522 properties in January, an increase of 8.8% compared to last year. Active listings rose to 2,673, up 22.7% year over year. While inventory remains higher than recent seasonal norms, the pace of growth has slowed, preventing an oversupply scenario.
Ottawa’s months of inventory currently sits at 4.4, placing the market closer to long-term averages. This level supports a balanced environment where buyers have options, and well-priced homes continue to attract solid interest.
Ottawa Housing Market by Property Type
Single-Family Homes
Detached homes remained the most stable segment of Ottawa’s market. In January, 276 single-family homes sold, down 13.8% year over year. Supply conditions stayed balanced, with 4.3 months of inventory supported by 1,177 active listings and 663 new listings.
The average sale price for a detached home was $793,874, down 3.6% year over year, while the median price held steady at $750,000. Benchmark prices edged slightly lower, signalling a gradual and orderly price adjustment.
Townhomes
Townhome sales increased to 215 units, up 6.4% from last year. However, supply rose sharply, with new listings jumping 45.8% year over year to 487. Active listings climbed to 708, pushing months of inventory to 3.3.
As a result, pricing softened modestly. The average townhome price was $536,106, down 3.3% year over year, while the median price declined to $560,000. Despite this, the townhome benchmark price rose slightly compared to December, suggesting near-term stabilization.
Apartments and Condos
The apartment and condo segment showed encouraging month-over-month improvement. Sales increased to 95 units in January, up from 78 in December, while months of inventory fell to 6.8 from 7.9.
Although new listings surged seasonally, improved sales activity helped absorb the added supply. The average condo price was $388,307, down 12.1% year over year, making this the most price-sensitive segment in Ottawa’s market. However, rising sales and declining inventory suggest early signs of stabilization.
Months of inventory by property type:
Single-family homes: 4.3
Townhomes: 3.3
Apartments: 6.8
Looking Ahead to Spring 2026
January’s Ottawa real estate data reflects a typical winter slowdown combined with cautious buyer behaviour. At the same time, there are early indications that market conditions may strengthen as we move toward spring.
Improved absorption in the condo market, steady detached home performance, and resilient townhome activity all point to a market that remains balanced but segmented by property type. This outlook aligns with CREA’s 2026 forecast, which anticipates improved conditions as lower interest rates gradually bring sidelined buyers back into the market.
If interest rate reductions continue, Ottawa could see increased activity and confidence heading into the spring market.
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