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How to make sense of the current Ottawa real estate market

Ottawa Real Estate Market Update: May 2026

The Ottawa housing market continued its slow but steady spring climb in May. Sales improved compared to April, buyers were more active, and homes that were priced properly continued to attract attention. However, we’re still seeing a very different market than we experienced during the spring rushes of the past few years.

If I had to summarize May in one sentence:

The market is healthy, but buyers are playing it safe and are taking their time.

Sales Picked Up, But Remain Behind Last Year

A total of 1,616 homes sold in Ottawa during May, up from 1,336 in April. That’s the seasonal increase we typically expect as the weather improves and more buyers begin shopping. However, sales were still down 10.6% compared to May of last year.

This isn’t because buyers have disappeared.

We’re still seeing plenty of showings, offers, and successful sales. The difference is that buyers have become more selective. They’re comparing more homes, negotiating harder, and are less willing to overlook pricing mistakes.

For sellers, this means preparation and pricing matter more than ever.

Inventory Continues to Grow

One of the biggest stories of 2026 remains inventory. Ottawa finished May with nearly 5,000 active listings, roughly 12% more than this time last year.

For buyers, that’s good news.

There are more homes to choose from, less pressure to make rushed decisions, and fewer situations where buyers feel forced into competing offers. For sellers, it means standing out has become increasingly important. Homes that are priced correctly and marketed properly continue to sell. Homes that miss the mark often sit longer and require price adjustments.

Home Prices Remain Remarkably Stable

Despite slower sales and increased inventory, prices have held up surprisingly well.

The average home sold for $721,270 in May, while the median sale price reached $660,000. Both figures were only slightly below where they were a year ago.

This is important because it highlights something we’ve been talking about for months: Ottawa is not experiencing a market correction. Instead, we’re seeing a normalization.

The frantic pandemic-era market is behind us, but strong population growth, stable employment, and relatively affordable housing compared to Toronto and Vancouver continue to support values.

Not All Property Types Are Performing the Same

The biggest mistake someone can make right now is looking at one city-wide statistic and assuming it applies to every home. We talk about this in our podcast. Ottawa is the most spread out major city in Canada. There are lots of different dynamics at play depending on the neighbourhood. With central locations being extremely active.

Single-Family Homes Continue to Lead

Detached homes remain the strongest segment of Ottawa’s market.

Benchmark pricing was slightly higher than last year, and median prices actually increased.

Townhomes Are Seeing More Competition

Townhomes remain popular, particularly with first-time buyers and military families, but increased inventory has created more competition. New builds took a huge chunk out of this segment in April and May. Leading to downward pressure on prices in this segment where builders have inventory: Kanata/Stittsville, Barrhaven.

Sales were down compared to last year, and pricing softened modestly. This isn’t a major concern, but it does mean sellers need to be realistic when setting expectations. Also, finding end units are selling much better than middle units in this segment.

Condos Remain the Softest Segment

Apartment-style condominiums continue to face the most pressure.

Higher carrying costs, increased inventory, and reduced investor demand have created a more challenging environment for condo sellers. Some of the older buildings’ condo fees are a runaway train! Buyers, have lots of choice in this segement. Getting a good deal is paramount.

What We’re Seeing on the Ground

Statistics are helpful, but they only tell part of the story.

What we’re seeing day-to-day is:

📈 Well-priced homes are still selling quickly, especially with the Chris Scott Team 🙂

🏡 Updated, move-in ready properties continue to outperform

💰 Buyers are negotiating more often than they were a year ago and walking from deals

📋 Conditional offers are becoming increasingly common

⏳ Overpriced homes are sitting longer and often selling after reductions

In many ways, this is what a healthy market looks like.

Neither buyers nor sellers have complete control, and success comes from strategy rather than simply relying on market momentum. In one word its BALANCED

What Happens Next?

As we move into summer, there are a few key indicators I’ll be watching closely:

● Inventory levels

● Days on market- our board will have more accurate numbers on this with new system

● Sale-to-list price ratios

● Interest rate decisions – I predict variables to lower. Maybe slightly on fixed too

● Employment trends – Public service will be the one to watch.

● New housing supply entering the market

If buyer confidence improves and inventory remains manageable, Ottawa should continue to see stable pricing through the second half of the year.

My Take

May was another reminder that Ottawa remains one of Canada’s most stable real estate markets.

We’re not seeing runaway price growth, but we’re also not seeing significant declines. Instead, we’re seeing a balanced market where buyers have options, sellers can still achieve excellent results, and strategy matters more than timing.

If you’re thinking about buying or selling this year, the biggest advantage isn’t trying to predict the market, it’s understanding your specific neighbourhood, property type, and competition. And that’s where local knowledge makes all the difference.

If you’d like to know what’s happening specifically in your neighbourhood, reach out anytime. We’re always happy to provide a personalized market update for your area.

— Chris Scott Team