August Market Overview
Ottawa’s real estate market experienced a noticeable slowdown in August, with home sales falling significantly compared with both July and the same month last year. The decline was considerably greater than the typical seasonal drop seen between July and August, making it an important indicator to watch as we move into the fall market.
Interestingly, the slowdown was not accompanied by a surge in new inventory. Both new listings and the number of homes actively on the market decreased from July. However, sales declined at a much faster pace, resulting in homes taking longer to be absorbed and pushing overall inventory levels higher.
Despite the softer sales environment, home prices remained relatively stable. The average sale price and MLS® Home Price Index benchmark were both slightly higher than they were a year ago, while the median sale price saw a modest decline.
The result is a market that is showing some contrasting signals: buyers generally have more choice and negotiating time, while sellers are facing greater competition and may need to be more strategic when pricing and marketing their properties.
Home Sales Decline Across Ottawa
There were 1,002 residential properties sold through the MLS® System in August, representing an 18.6% decrease compared with August 2025. Sales were also down 24.4% from July.
That monthly decline was considerably larger than the typical seasonal change. Over the past decade, the median July-to-August decline in sales has been approximately 5.8%, highlighting just how significant this year’s drop was.
August’s sales total matched 2022 for the lowest number of August sales recorded since 2016.
The slowdown was broad-based, affecting all three major residential property categories:
- Single-family homes: 535 sales, down 16.3% from August 2025
- Townhomes: 310 sales, down 19.9%
- Apartments: 136 sales, down 22.3%
Unlike some earlier periods in 2026, when weaker activity was concentrated primarily in the townhouse and apartment segments, August saw declining sales across the entire residential market.
Looking at the year so far, 9,283 homes have sold in Ottawa, which is 6.9% fewer than during the same period in 2025. The year-to-date gap has therefore widened from 5.2% at the end of July.
Total residential dollar volume for the year to date was approximately $6.5 billion, down 7.2% from last year.
Home Prices Continue to Hold Up
While transaction activity weakened substantially, Ottawa’s pricing indicators remained comparatively steady.
The average residential sale price was $688,253 in August, up 0.3% from the same month last year and 0.7% from July.
The median sale price was $622,357, representing a 1.2% year-over-year decline and a 2.0% decrease from July.
The MLS® Home Price Index, which helps account for changes in the types of properties being sold, recorded a composite benchmark price of $637,700. That was 1.0% higher than August 2025 and 0.6% above July’s figure.
Taken together, these numbers suggest that Ottawa’s market is experiencing a much more significant change in sales activity than in property values. Prices have not followed the sharp decline in transaction volume.
More Inventory and Slower Absorption
Ottawa had 2,119 new residential listings in August, essentially unchanged from the same month last year but down 16.2% from July.
There were 4,496 active listings, an 11.3% increase compared with August 2025, although active inventory was down 3.9% from July.
While the month-to-month decline in listings is generally consistent with seasonal patterns, the amount of available inventory remains noteworthy. Active listings were at their highest August level since 2016.
At the same time, fewer homes were being sold relative to the number of new properties coming onto the market. The sales-to-new-listings ratio fell from 52.4% in July to 47.3% in August.
Months of inventory also increased significantly, moving from 3.5 months to 4.5 months in just one month. Historically, there has been very little movement in months of inventory between July and August, making this year’s increase more meaningful.
This doesn’t necessarily mean that inventory is being cleared primarily through sales. An OREB review of listing activity indicates that cancellations, terminations and expirations became more common compared with completed transactions over the summer.
In other words, some properties appear to be leaving the market without selling. This could indicate that certain sellers are choosing to pause their plans, reassess their asking prices or wait for market conditions to improve before trying again.
Different Property Types Tell Different Stories
The overall Ottawa numbers don’t tell the entire story, as market conditions continue to vary depending on the type of property.
Single-Family Homes
Single-family properties remained the strongest of the three major segments.
The benchmark price increased 2.2% year over year, while inventory stood at approximately 4.0 months.
Townhomes
Townhouses experienced more pressure. Inventory reached 4.1 months, while active listings were 27.1% higher than a year ago.
The townhouse benchmark price was also 4.0% lower year over year, making this a segment worth watching as we enter the fall.
Apartments
The apartment market continued to have the highest level of available inventory.
Apartments had 6.3 months of inventory, a 43.0% sales-to-new-listings ratio and a median of 42 days on the market.
However, there were some signs that conditions may be stabilizing. Active apartment listings declined from July, the sales-to-new-listings ratio improved slightly, and the apartment benchmark price increased 1.9% month over month.
While apartments remain the softest segment of Ottawa’s residential market, August did not show a dramatic new deterioration.
How Ottawa’s Different Areas Performed
The slowdown was widespread across Ottawa rather than isolated to one particular area.
The three suburban markets continued to represent more than 70% of Ottawa’s residential sales, although each experienced fewer transactions than in August 2025:
- Ottawa Suburb West: Sales down 14.3%
- Ottawa Suburb East: Sales down 20.0%
- Ottawa Suburb South: Sales down 25.1%
Of the three, Suburb West showed the strongest absorption, with 3.6 months of inventory and a 51.9% sales-to-new-listings ratio.
Conditions were softer in the central and eastern rural markets.
Ottawa Centre recorded 81 sales, 7.0 months of inventory and a sales-to-new-listings ratio of 38.2%.
Ottawa Rural East had 84 sales, 6.5 months of inventory and a 40.6% sales-to-new-listings ratio.
Ottawa Rural West was the exception to the broader trend. Sales increased 22.6% year over year, and the area recorded the highest sales-to-new-listings ratio at 62.3%. However, with only 76 transactions, the relatively small number of sales means the percentage increase should be viewed in context.
Overall, the August figures show that western suburban and rural markets continued to have somewhat stronger absorption, while central Ottawa and Rural East experienced more buyer-friendly conditions.
What Could Happen This Fall?
The Ottawa market is entering the fall with a mix of encouraging and concerning indicators.
On the broader economic front, there have been some positive developments. Statistics Canada reported annualized real GDP growth of 3.3% in the second quarter, while first-quarter growth was revised upward to 0.3%. At the same time, economic uncertainty continues to influence consumer and housing-market confidence.
Looking ahead, CMHC expects Ottawa-area home sales to stabilize, while slower demand growth and increasing supply limit significant price growth. The rental market is also expected to continue easing as recently constructed rental properties become available.
Nationally, RBC Economics anticipates a gradual housing-market recovery beginning in 2027, following an overall decline in transactions and benchmark prices during 2026. However, affordability, population growth and broader economic conditions are expected to continue influencing the pace of recovery.
For Ottawa, the big question is whether August was simply a weaker-than-normal month or the beginning of a longer period of slower activity.
One month is not enough to establish a new trend. However, the combination of sharply lower sales, rising months of inventory, a lower sales-to-new-listings ratio and a widening year-to-date sales gap is worth watching closely.
For buyers, this environment can provide more choice, less competition and additional time to make informed decisions. For sellers, accurate pricing and strong presentation are increasingly important as buyers have more properties to compare.
As we move through the fall market, it will also be interesting to see how many properties that were withdrawn or cancelled during the summer return to the market—and whether those sellers return with adjusted pricing or different strategies.
The Ottawa real estate market is clearly not moving uniformly in one direction. Sales have softened considerably, but prices have remained relatively resilient, creating a market where local conditions, property type and pricing strategy matter more than ever.
