The Ottawa real estate market continued its gradual spring recovery in May, with sales activity increasing from April while remaining below the pace we saw during the same period last year. For both buyers and sellers, the current market presents a different landscape than we’ve experienced over the past several years—one defined by balance, increased inventory, and the importance of strategic decision-making.
Sales Activity Picks Up, But Remains Below Last Year’s Levels
A total of 1,616 homes sold through Ottawa’s MLS® system in May, representing a healthy increase from April’s 1,336 transactions. While this seasonal boost is typical as the spring market unfolds, sales were still down 10.6% compared to May 2025.
This trend has been consistent throughout much of 2026. Buyers remain active, but many continue to approach the market with greater caution amid ongoing economic uncertainty and changing affordability considerations.
Year-to-date sales currently sit 6.3% below where they were at this time last year, indicating that while demand remains present, the market is moving at a more measured pace.
Inventory Continues to Rise
One of the biggest stories in Ottawa’s market continues to be inventory growth.
Active listings reached 4,917 homes in May, up more than 12% from a year ago and significantly higher than levels seen during the highly competitive markets of recent years. New listings totalled 3,351 properties during the month, giving buyers considerably more choice than they had last spring.
This increased supply has created a more balanced market environment. The sales-to-new-listings ratio improved to 48.2%, while months of inventory sat at 3.0 months overall—both indicators that suggest neither buyers nor sellers currently hold a significant advantage.
For sellers, this means pricing correctly from the outset is more important than ever. For buyers, it means having the ability to compare options, negotiate more confidently, and take the time needed to make informed decisions.
Pricing Remains Stable Overall
Despite softer sales activity and increased inventory, Ottawa home prices have remained remarkably stable.
The average residential sale price reached $721,270 in May, up from April and only 0.9% lower than May 2025. The median sale price climbed to $660,000, representing a modest monthly increase while remaining 1.6% below last year’s level.
These relatively small year-over-year changes highlight a market that is adjusting rather than correcting. While rapid price appreciation has largely disappeared, widespread price declines have not materialized either.
Different Property Types, Different Stories
One of the most important themes in today’s market is that not all property types are performing the same way.
Single-Family Homes Continue to Lead
Detached homes remain the strongest segment of the market. Benchmark prices increased slightly from both April and May 2025, while the median sale price rose 1.3% year-over-year to $800,000.
Limited inventory in many desirable family-oriented neighbourhoods continues to support pricing and buyer demand in this category.
Townhomes Show Signs of Softening
Townhomes experienced a slower May, with sales declining 14.3% compared to last year. While prices have remained relatively stable, the increase in available inventory has created more competition among sellers.
For buyers seeking affordability without moving into the condo market, this segment may present some attractive opportunities over the coming months.
Condos Remain the Softest Segment
Apartment-style properties continue to face the greatest challenges. Benchmark condo prices were down 6.7% year-over-year, and both average and median sale prices also trended lower.
Higher carrying costs, changing investor demand, and increasing competition from new rental developments are all contributing factors. That said, Ottawa’s condo market remains fundamentally different from larger markets such as Toronto, where investor activity has historically played a much larger role.
Neighbourhood Trends Continue to Vary
Ottawa’s regional performance highlights why local market knowledge remains critical.
The strongest year-over-year sales growth occurred in Ottawa Centre, where transactions increased by 13.5%. Ottawa Rural West also posted modest gains.
Meanwhile, suburban markets continued to account for the majority of overall sales activity. Ottawa’s west-end suburbs remained particularly active, benefiting from strong family demand and relatively limited inventory in certain neighbourhoods.
As always, market conditions can vary significantly between communities, price ranges, and property types, making citywide statistics only part of the story.
What to Watch This Summer
As we move into the summer market, several factors will likely influence market performance:
- Inventory levels and whether supply continues to outpace demand.
- Buyer confidence amid ongoing economic uncertainty.
- Employment trends and broader economic conditions.
- The absorption of newly completed housing projects.
- Continued differences between detached homes, townhomes, and condos.
While Ottawa is not experiencing dramatic price growth, the market is also showing resilience. Increased inventory has created healthier conditions, giving buyers more options while still supporting overall price stability.
Final Thoughts
May’s results reinforce what we’ve been seeing throughout much of 2026: Ottawa remains a balanced market.
Buyers have more opportunities and negotiating power than they’ve enjoyed in recent years, while sellers can still achieve strong results when properties are priced and marketed effectively. The key is understanding that today’s market is highly localized—success depends less on broad market headlines and more on property-specific and neighbourhood-specific conditions.
Whether you’re considering buying, selling, or simply monitoring the market, staying informed about local trends remains the best way to make confident real estate decisions.
If you’re curious about how current market conditions affect your home’s value or your buying plans, feel free to reach out. I’d be happy to discuss what’s happening in your specific neighbourhood and price range.
