Market Overview
According to Ottawa MLS® statistics, 1,616 homes were sold in May, up from 1,336 sales in April. Despite the month-over-month increase, sales were down 10.6% compared to May 2025, continuing a trend of softer activity throughout much of 2026.
The sales-to-new-listings ratio rose to 48.2%, while months of inventory declined to 3.0. This indicates that buyer demand absorbed a larger share of new supply than it did in April, although inventory levels remain significantly higher than they were one year ago. Active listings reached 4,917 properties, providing buyers with greater selection and creating more competition among sellers.
The Ottawa real estate market showed signs of seasonal improvement in May 2026, with home sales increasing from April levels while continuing to trail the stronger pace seen during the spring market of 2025. Inventory remains elevated, buyers continue to enjoy more choice, and home prices have remained relatively stable across most market segments.
Ottawa Home Prices Remain Stable
While market activity has slowed compared to last year, Ottawa home prices have remained relatively stable. The average residential sale price reached $721,270 in May, up from $712,184 in April but 0.9% below May 2025. The median sale price rose to $660,000 from $650,000 in April, while remaining 1.6% lower than the same period last year.
Performance varied across property types. Single-family homes continued to demonstrate resilience, with average pricing remaining essentially unchanged year over year and median prices increasing by 1.3%. Townhomes and apartment-style properties experienced softer conditions, with both average and median prices remaining below 2025 levels.
The MLS® Home Price Index (HPI) composite benchmark price increased 0.9% from April but remained 0.6% below May 2025, highlighting the differences between Ottawa’s various housing segments.
Economic uncertainty continues to influence buyer and seller behaviour. Recent GDP data has raised questions about Canada’s economic momentum, while the Bank of Canada has maintained a cautious approach to interest rates. Employment data presents a mixed picture, contributing to a market where many buyers continue to weigh affordability, borrowing costs, and economic confidence before making purchasing decisions.
Overall, the Ottawa housing market remains balanced. However, sales continue to lag last year’s pace, inventory remains elevated, and softer segments such as apartments and townhomes are weighing on broader market performance. The strength of the summer market will largely depend on whether buyer demand continues to absorb available inventory at a steady pace.
Ottawa Residential Market Activity
Ottawa home sales increased in May as the spring market continued to gain momentum. A total of 1,616 homes were sold through the MLS® System, representing a 10.6% decrease compared to May 2025 but a significant increase from April’s 1,336 sales.
Sales declined across all major property types compared to the previous year. Single-family homes recorded 904 sales, down 8.6% year over year. Townhome sales totalled 481, a decrease of 14.3%, while apartment-style properties recorded 203 sales, down 12.1%.
Although demand remains active, these results demonstrate that buyers continue to move more cautiously than they did during the stronger spring market of 2025.
Ottawa Housing Inventory Continues to Build
Supply levels remained elevated throughout May. New listings totalled 3,351 properties, down 2.2% compared to May 2025. Active listings rose to 4,917 homes, an increase of 12.2% year over year and above April’s total of 4,535 listings.
While the pace of new listings moderated slightly, the continued increase in active inventory suggests that supply is accumulating faster than it is being absorbed. This trend continues to create more favourable conditions for buyers compared to recent years.
The sales-to-new-listings ratio improved to 48.2%, up from 41.0% in April, reinforcing Ottawa’s position as a balanced housing market.
Year-to-date, 5,453 homes have sold in Ottawa, down 6.3% compared to the same period in 2025. New listings total 12,284, up 5.4%, while average active listings have increased by 14.8%.
With a year-to-date sales-to-new-listings ratio of 44.4% and 3.5 months of inventory, Ottawa remains balanced overall, though sellers face more competition than they did during last year’s spring market.
Ottawa Home Prices and Market Balance
Price trends remained stable in May, although conditions varied considerably by property type.
The average residential sale price reached $721,270, down 0.9% from May 2025 but higher than April’s average of $712,184. The median sale price increased to $660,000, though it remained 1.6% below last year’s level.
Year-to-date, Ottawa’s average home price sits at $694,539, down 0.6% compared to 2025, while the median price stands at $639,000, down 1.7%.
Single-Family Homes Remain Ottawa’s Strongest Segment
Single-family homes continued to provide stability within the Ottawa real estate market. The HPI benchmark price for single-family homes reached $723,800 in May, up 0.9% from April and 0.3% year over year.
The average sale price remained essentially unchanged from last May, while the median sale price increased 1.3% to $800,000.
Townhomes Show Signs of Softening
Townhomes experienced softer market conditions in May compared to earlier in the year. While the segment had remained relatively resilient during the first few months of 2026, activity slowed during May.
Townhome sales declined 14.3% year over year, bringing year-to-date sales 2.8% below 2025 levels. The townhouse HPI benchmark price was $557,500, down 0.4% from April and 3.2% from May 2025.
The more notable trend remains slower absorption and higher inventory levels, which have reduced competitive pressure compared to previous years.
Apartment-Style Properties Face the Greatest Pressure
The apartment-style condominium segment continues to experience the softest conditions in Ottawa’s housing market.
The apartment benchmark price reached $385,500 in May, up 1.5% from April but down 6.7% year over year. Average and median apartment prices also remained below 2025 levels.
While similar pressures have been observed in other Canadian markets, including Toronto’s condominium sector, Ottawa’s apartment market should be viewed within the context of local supply and demand conditions. Current data suggests a slower and more price-sensitive segment rather than a broad market correction.
Months of Inventory by Property Type
Single-Family Homes: 2.7 Months
Townhomes: 2.7 Months
Apartment-Style Properties: 4.8 Months
Overall, Ottawa is not experiencing broad-based price growth, but neither is it facing widespread price declines. Single-family homes continue to support overall market stability, townhomes are adjusting to changing market conditions, and apartment-style properties remain the softest segment.
For sellers, accurate pricing and effective marketing remain essential. For buyers, increased inventory provides more opportunities and greater negotiating power than in recent years.
Ottawa Regional Market Comparison
Ottawa’s regional housing market remained uneven in May, reinforcing the importance of neighbourhood-specific analysis.
Ottawa Centre and Ottawa Rural West were the only major submarkets to record year-over-year sales gains, while suburban communities continued to account for the majority of overall activity.
Ottawa Centre delivered the strongest improvement, with sales increasing 13.5% compared to May 2025. Prices also moved higher year over year, suggesting stronger engagement after a slower start to the year.
The suburban markets remained the primary drivers of Ottawa home sales. Ottawa Suburb West recorded the highest sales volume and the lowest months of inventory, indicating stronger buyer demand and faster absorption. However, prices remained below last year’s levels, highlighting that activity strength does not necessarily translate into price growth.
Ottawa Suburb South remained relatively stable, while Ottawa Suburb East experienced a larger decline in sales activity despite higher prices.
Rural markets showed the variability that typically accompanies lower transaction volumes. Ottawa Rural West posted modest year-over-year sales growth, while Rural East and Rural South recorded weaker activity. Rural East also reported the highest inventory levels among Ottawa’s major submarkets, indicating slower absorption.
Overall, local market conditions continue to play a significant role in pricing and activity. Neighbourhood trends, property type, and inventory levels remain more important than citywide averages alone.
Ottawa Real Estate Market Outlook
As Ottawa enters the summer market, the most important indicators to watch will be inventory levels, buyer demand, and the pace at which new supply is absorbed.
REALTORS® and consumers should continue monitoring the sales-to-new-listings ratio, months of inventory by property type, median days on market, sale-to-list-price ratios, and benchmark price trends across single-family homes, townhomes, and apartment-style properties.
Recent CMHC construction data provides additional context. Housing starts declined year over year across all dwelling types in April, but the composition of new construction continues to evolve. Rental projects accounted for 61% of all housing starts, while apartment-style developments represented the majority of units currently under construction.
This shift may have important implications for future apartment resale pricing, rental market competition, and investor activity as these projects move toward completion.
Completed and unabsorbed inventory will also be an important metric to monitor. CMHC data indicates that unsold completed inventory has increased, particularly among row homes and single-detached properties. The absorption of these newly completed homes will be an important complement to resale inventory trends in the months ahead.
Looking forward, the key indicators remain clear: inventory levels, new listings, housing absorption, apartment construction activity, and local employment conditions. Together, these factors will provide the clearest picture of where the Ottawa real estate market is headed during the second half of 2026.
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