Ottawa’s housing market continued to move at a slower winter pace in February, with overall sales coming in well below the typical levels seen for this time of year. While the headline numbers may suggest a quiet market, a closer look at the data shows that conditions vary significantly across different property types.
Even though total transactions remain subdued compared to historical averages, activity within specific segments reveals subtle shifts that could shape the market as spring approaches.
Different Property Types Showing Different Trends
The condominium apartment segment showed some early signs of improvement. Average condo prices increased from January to February, while inventory levels eased slightly. This may indicate the beginning of a market adjustment after a period of elevated supply that began in late 2025.
Townhomes were the most active segment during the month. Sales volumes were stronger than what is typically seen in February, suggesting solid demand in this category. However, an increase in available listings has created some downward pressure on prices.
Meanwhile, the single-family home market remained relatively steady. Although sales declined compared to last year, prices stayed fairly consistent overall. Lower-priced detached homes in particular continue to attract strong competition from buyers.
Sales Activity Remains Below Long-Term Averages
In February, 780 residential properties were sold in Ottawa, representing a 6.8% decrease compared with February 2025. While activity improved from January’s 610 sales, it still fell well short of historical norms.
Sales were 21.2% below the five-year February average of 990 transactions and 17.8% lower than the ten-year average of 949. This makes the current winter one of the quietest the region has experienced in the past decade.
However, the slowdown does not mean buyer demand has disappeared. Many buyers remain active in the market, particularly at more affordable price points. Higher inventory levels and ongoing affordability concerns appear to be encouraging buyers to take more time before committing to a purchase.
Home Prices Showing Modest Movement
Price trends reflect a market that is adjusting rather than declining sharply.
The average residential sale price in February was $662,773, which represents a 1% decrease compared with the same time last year. The median price fell slightly more, dropping 3.1% to $615,450.
These changes remain relatively modest and are consistent with a market that is absorbing a larger supply of homes rather than experiencing widespread price declines.
Inventory levels also moved closer to balance. Months of inventory decreased to 3.8 in February, down from 4.4 in January, as sales activity picked up slightly with the approach of the spring season.
Benchmark Prices Begin to Edge Higher
The MLS® Home Price Index (HPI) provides additional context for understanding the market. Unlike average prices, the HPI adjusts for factors such as property type and seasonal patterns, giving a clearer picture of true price trends.
Although benchmark prices are still slightly lower than they were a year ago, February saw month-over-month increases across every major category, including:
-
The overall composite benchmark
-
Single-family homes
-
Townhouses
-
Apartment-style condominiums
Because the HPI controls for changes in the types of homes being sold, these increases suggest genuine price strengthening rather than the typical seasonal bump that occurs as spring approaches.
More Listings Giving Buyers Greater Choice
New listings totalled 1,582 properties in February, which was 7.8% lower than February 2025 but slightly higher than the 1,522 listings recorded in January.
By the end of the month, 2,928 homes were actively listed for sale, representing an 11.1% increase compared with last year and significantly more inventory than Ottawa has seen in recent February markets.
This increase in supply is giving buyers more options and reducing the urgency that defined many markets over the past several years. At the same time, steady sales activity and rising benchmark prices show that demand is still present.
Overall, the market continues to operate within balanced territory, with supply and demand remaining relatively aligned.
What to Expect Moving Toward Spring
February’s results reinforce the trend that began in January: Ottawa’s housing market is currently in a transitional phase.
While this winter has been quieter than those in recent years, several indicators suggest underlying stability. Improving condo absorption, strong townhome turnover, and steady pricing in the detached market all point to consistent buyer interest.
According to forecasts from the Canadian Real Estate Association (CREA), housing demand is expected to gradually strengthen throughout 2026 as borrowing costs ease. Ottawa’s current market conditions align with that outlook.
If momentum continues building into the spring season, the current level of inventory could support increased activity without the sharp price spikes seen during previous market cycles.
For both buyers and sellers, the coming months may offer a more balanced and predictable environment than the market has experienced in several years.
