TL;DR
- Sales trails 2025 pace: May saw 1,616 homes sold, which is an improvement from April’s numbers but represents a 10.6% decline compared to May 2025.
- Inventory levels rise: Active listings have climbed to 4,917 units (a 12.2% year-over-year increase), giving buyers more options and requiring sellers to price strategically.
- Pricing remains stable: The average residential sale price sat at $721,270, a nominal 0.9% decrease from last year, indicating overall market stability despite slower sales.
- Market conditions are balanced: A sales-to-new-listings ratio of 48.2% and 3.0 months of inventory point to a balanced market where supply and demand are relatively aligned.
Real Estate Market Analysis in May
Ottawa’s housing market remained firmly in balanced territory throughout May. Activity demonstrated a typical seasonal lift as the spring market progressed, with total sales jumping from 1,336 in April to 1,616 in May. However, a persistent theme for 2026 is that sales continue to trail last year’s stronger spring pace. Economic uncertainty, shifting employment trends, and the Bank of Canada’s cautious approach to interest rates are continuing to heavily influence consumer confidence.
While new supply entering the market slightly declined year-over-year, the accumulation of active listings means sellers are facing more competition than they did last spring.
OREB President Tami Eades summarized the current climate: “The Ottawa market is not moving in one direction across all property types. May brought the seasonal increase in activity we typically expect to see in Ottawa’s housing market, but sales continue to trail at last year’s pace. While economic uncertainty continues to influence consumer confidence, the key question moving into the summer market will be whether demand continues to keep pace with supply.”
May Data Breakdown
| Metric | May 2026 | Year-Over-Year Change |
|---|---|---|
| Total Sales Activity | 1,616 | -10.6% |
| New Listings | 3,351 | -2.2% |
| Active Listings | 4,917 | +12.2% |
| Months of Inventory | 3.0 | +0.6 months |
| Average Sale Price | $721,270 | -0.9% |
| Benchmark Price (Composite) | $635,300 | -0.6% |
Note: The Benchmark Price tracks the value of a “typical” home in a given neighborhood, which smooths out distortions caused by the specific mix of homes that happen to sell in a given month.
Story of May Real Estate
The regional data and property-type breakdown point to a market shaped by distinct differences rather than one broad trend.
1. Single-Family Homes (Detached) Single-family homes remained the most resilient segment of the Ottawa market. While sales activity (904 units) was down 8.6% from a year earlier, pricing held steady. The average single-family sale price was essentially unchanged from last May, and the median price rose 1.3% to $800,000. With 2.7 months of inventory, this segment continues to provide the main support for the broader market’s stability.
2. Townhomes The townhome segment softened in May, reversing a pattern of resilience seen earlier in the year. Sales fell 14.3% year-over-year, and the Benchmark Price dropped 3.2% to $557,500. The larger signal in this segment is softer absorption; active listings remain elevated, and months of inventory currently sit at 2.7, highlighting that buyers have more time and choices to evaluate their options.
3. Apartments (Condos) Apartment-style properties continue to face the most pronounced pressure. Experiencing a 12.1% drop in sales, the Benchmark Price also adjusted downward by 6.7% to $385,500. Inventory levels are highest here, reaching 4.8 months. This weakness—echoing trends in larger markets like Toronto—is being driven by weaker investor demand and higher carrying costs. The data suggests this is a slower, highly price-sensitive segment rather than a broad market correction.
Looking Ahead
As Ottawa transitions into the summer market, the primary indicator to watch will be whether buyer demand can absorb the steady accumulation of supply. Broader economic forecasts will likely take a backseat to highly localized data points such as the sales-to-new-listings ratio, localized months of inventory, and sale-to-list ratios.
Furthermore, monitoring newly constructed housing completions will be vital. Recent data shows housing starts shifting heavily toward rental and apartment projects. As these units move toward completion, their absorption will serve as a crucial companion indicator to resale inventory, particularly impacting the already price-sensitive condo and apartment segment. The market remains active, but inventory levels and localized employment trends will dictate its trajectory over the coming months.