TL;DR
- Market Balance: Ottawa entered 2026 on balanced footing, with inventory levels significantly higher than in recent years.
- Sales Activity: 610 residential properties were sold in January, a 5.6% decrease compared to January 2025.
- Inventory Growth: Active listings rose by 22.7% year-over-year, providing buyers with more choice and negotiating flexibility.
- Price Trends: The average residential sale price was $641,436 (down 4.5% YoY), while the Composite Benchmark Price declined by 4.8% YoY.
- Segment Performance: Detached homes showed the most price stability, while townhomes and apartments experienced more pronounced adjustments.
Real Estate Market Analysis in January
The Ottawa residential market began 2026 in a state of healthy adjustment. January’s data illustrates a market operating more evenly, moving away from the high-pressure conditions of previous years toward a more sustainable equilibrium. While inventory levels remain elevated relative to recent seasonal norms, the growth of new supply has begun to slow, helping to prevent an oversupply of listings.
According to Ottawa Real Estate Board President Tami Eades, the current environment is characterized by stability rather than stress. “We’re seeing more choice for buyers, more realism on the selling side, and pricing that’s responding to those conditions without sharp swings,” Eades noted. This shift is rewarding sellers who prioritize accurate pricing and patience, while allowing buyers to proceed with greater caution and choice amid ongoing affordability considerations.
January Data Breakdown
| Metric | January 2026 | Year-Over-Year Change |
|---|---|---|
| Total Sales Activity | 610 | -5.6% |
| New Listings | 1,522 | +8.8% |
| Active Listings | 2,673 | +22.7% |
| Months of Inventory | 4.4 | +29.4% (from 3.4) |
| Average Sale Price | $641,436 | -4.5% |
| Benchmark Price (Composite) | $606,700 | -4.8% |
The MLS® Home Price Index (HPI) Benchmark Price is a more accurate indicator of price trends than average price, as it controls for distortions caused by the specific mix of high-end versus low-end homes sold in any given month.
Story of January Real Estate
The “story” of the January market is one of divergence between property types, with each segment responding differently to the increase in inventory and the impact of recent interest rate movements.
Single-Family Homes (Detached) Detached homes remain the most stable segment of the Ottawa market. While sales volume decreased by 13.8% year-over-year (276 units), pricing has remained resilient. The median price for a single-family home held steady at $750,000, unchanged from January 2025. With 4.3 months of inventory, this segment is orderly and balanced, showing that detached home pricing is adjusting without the volatility seen in higher-density housing.
Townhomes The townhome segment saw a notable surge in activity and supply. Sales rose by 6.4% year-over-year, but this was met by a sharp 45.8% increase in new listings. This influx has shifted leverage modestly toward buyers, with active listings up 67% compared to last year. Consequently, the average townhouse price softened by 3.3% to $536,106. Interestingly, while the benchmark price is down annually, it saw a 1.0% increase compared to December 2025, suggesting a month-over-month firming of interest.
Apartments (Condos) Condos currently represent the most price-sensitive segment in Ottawa. The average apartment sale price fell 12.1% year-over-year to $388,307. However, January brought signs of “constructive absorption.” Sales increased compared to December 2025, and the months of inventory actually decreased from 7.9 to 6.8. While supply remains high, the improved sales velocity suggests that the condo market may be finding its floor as buyers take advantage of lower entry points.
Looking Ahead
January’s performance aligns with the broader 2026 outlook provided by the Canadian Real Estate Association (CREA), which anticipates a gradual strengthening of the market. While seasonal factors and economic uncertainty kept buyers cautious in the first month of the year, early signs of firming are appearing, particularly in the apartment and townhome segments.
The impact of recent interest rate reductions is currently more visible in buyer engagement and inquiries than in closed transactions. However, if rate reductions continue to ease affordability pressures, there is a credible case for a more robust spring market. For now, Ottawa remains a balanced environment where stability and choice define the landscape for both buyers and sellers.