TL;DR
- Sharp Pullback in Sales: A total of 1,002 residential properties traded hands in August 2026, marking an 18.6% drop year-over-year and tying 2022 for the lowest August sales volume since 2016.
- Inventory Accumulation: Active listings climbed 11.3% year-over-year to 4,496, pushing Months of Inventory (MOI) up to 4.5—the highest level recorded for August in a decade.
- Pricing Resilience: Despite reduced demand, home values remained firm; the MLS® Home Price Index (HPI) composite benchmark price rose 1.0% year-over-year to $637,700, and the average residential sale price edged up 0.3% to $688,253.
- Divergence Across Segments: Single-family homes demonstrated the greatest price stability (+2.2% benchmark gain), while townhomes (-4.0%) and condominiums (-3.6%) experienced pricing pressure amid elevated supply.
Real Estate Market Analysis in August
The Ottawa housing market experienced a notable loss of momentum in August 2026. Following modest, incremental gains in July, residential sales pulled back significantly, widening the year-to-date sales deficit compared to 2025.
A monthly slowdown between July and August is typical in Ottawa’s seasonal cycle, but August’s 24.4% month-over-month drop was substantially steeper than the 10-year median decline of 5.8%. Interestingly, this softness was not triggered by an influx of fresh supply. Both new listings (2,119) and active listings (4,496) declined from July levels. However, because sales contracted at a much steeper rate, market absorption slowed, driving Months of Inventory from 3.5 in July to 4.5 in August.
OREB’s transaction data also indicates a rise in listing terminations, cancellations, and expirations relative to closed sales over the summer months. While these non-sale removals decreased from July, they outpaced sales, showing that a larger share of sellers chose to pause or withdraw their listings rather than discount under current conditions.
Despite the drop in sales volume, prices showed remarkable firmness. “Prices remained relatively steady despite the pullback in sales, which tells us this is not a simple story of the market moving uniformly in one direction,” noted OREB President Tami Eades. “Buyers are seeing less competitive conditions and have more time to make decisions, while sellers are facing more competition and may need to be thoughtful about pricing and positioning their homes for the current market. One month does not establish a trend, but the shift in sales and inventory is something we’ll be watching closely as we head into the fall market.”
August Data Breakdown
| Metric | August 2026 | Year-Over-Year Change |
|---|---|---|
| Total Sales Activity | 1,002 | -18.6% |
| New Listings | 2,119 | 0.0% |
| Active Listings | 4,496 | +11.3% |
| Months of Inventory | 4.5 | +36.4% (up from 3.3) |
| Average Sale Price | $688,253 | +0.3% |
| Benchmark Price (Composite) | $637,700 | +1.0% |
Note: The MLS® Home Price Index (HPI) Benchmark Price provides a more accurate representation of price trends than average or median prices because it controls for variations and distortions caused by the mix of property types sold in any given month.
Story of August Real Estate
The August report reveals clear divergence across Ottawa’s property categories. While softer demand was felt across the board, supply dynamics and price performance differed markedly by property type.
Single-Family Homes (Detached)
Single-family detached properties remained the most resilient anchor of the Ottawa market. Although sales declined 16.3% year-over-year to 535 transactions, pricing fundamentals remained solid. The benchmark price rose 2.2% year-over-year to $726,700, and the average sale price increased 1.0% to $845,113. With active listings up a moderate 6.3% to 2,143 units, inventory stands at an even 4.0 months of supply. Properties in this segment spent a median of 26 days on market, selling at an average of 97.9% of list price, reflecting balanced conditions and steady underlying demand.
Townhomes
The townhouse segment faced notable inventory pressure in August. Sales dropped 19.9% year-over-year to 310 units, while active listings surged 27.1% to 1,262 available properties. This accumulation pushed the months of inventory to 4.1 (up from 2.6 a year prior). As supply expanded, prices saw a downward adjustment: the benchmark price slipped 4.0% year-over-year to $547,300, while the average sale price decreased 4.7% to $529,123. The rapid increase in supply relative to absorption makes townhomes a key segment to monitor heading into the autumn months.
Apartments (Condos)
The condominium apartment market continued to exhibit the softest conditions in the city, extending a pattern observed throughout 2026. Sales fell 22.3% year-over-year to 136 units, and inventory rose to 6.3 months of supply with 851 active listings. Properties took a median of 42 days to sell. The apartment benchmark price declined 3.6% year-over-year to $392,900. However, month-over-month data pointed toward potential stabilization: active listings contracted slightly from July, the sales-to-new-listings ratio improved to 43.0%, and the benchmark price rose 1.9% compared to the previous month, suggesting that while conditions remain buyer-favourable, the sector is not in a freefall.
Looking Ahead
Ottawa’s softer August housing results played out against an improving yet cautious broader macroeconomic backdrop. Canada’s real GDP expanded at an annualized rate of 3.3% in the second quarter of 2026, alongside upward revisions to first-quarter growth. While the Bank of Canada has acknowledged signs of economic firming, macro uncertainty remains elevated.
Institutional outlooks point to an extended transition period:
- CMHC expects sales activity in the Ottawa census metropolitan area to stabilize, with slower demand growth and ample active supply keeping a lid on substantial price acceleration. Elevated purpose-built rental construction is also anticipated to maintain downward pressure on rental market tightness.
- RBC Economics projects national resales and benchmark prices to register modest full-year declines in 2026 before entering an irregular recovery in 2027 (+6.7% sales growth nationally), tempered by persistent affordability hurdles and slower demographic growth.
For the Ottawa resale market, the critical question entering the fall market is whether August’s contraction was an exaggerated late-summer pause or the beginning of a prolonged downtrend. Market observers will be monitoring whether sellers who took their properties off the market re-list with revised pricing strategies, and how absorption holds as fall activity ramps up.