Ottawa's housing market remains buyer-friendly as sales improve and prices soften

Ottawa's real estate market continued to favour buyers in October, although a modest increase in sales and fewer new listings helped ease some of the pressure on sellers. According to the Ottawa Real Estate Board (OREB), 1,048 homes sold in October, down 10.7% from the same month last year but up 3.8% from September. While the increase in sales is encouraging, October's total was still the third-lowest for the month since 2016. Buyers remain cautious, and the market continues to offer more choice than it did a year ago.

Fewer new listings bring some balance

One of the biggest developments in September was the substantial increase in homes coming onto the market. October brought a partial reversal.

New listings declined 18.6% from September to 2,382, while active listings fell 4.8% to 4,582 homes.

This helped improve Ottawa's sales-to-new-listings ratio from 34.5% in September to 44.0% in October. Months of inventory also declined from 4.8 to 4.4.

Both measures suggest the market became somewhat more balanced during October.

However, some perspective is important. New listings typically decline as we approach winter, and active inventory remains 6.4% higher than a year ago.

The additional selection buyers have enjoyed this fall hasn't disappeared. There are simply fewer new properties entering the market.

Are Ottawa home prices falling?

October provided clearer evidence of some downward pressure on prices.

The average residential sale price was $678,512, down 4.5% from October 2025 and 1.0% from September. The median price was $622,000, down 3.9% year-over-year.

The MLS® Home Price Index benchmark, which helps account for differences in the types of homes selling, was $616,900, down 1.3% from a year earlier.

That distinction matters. Average prices can fluctuate depending on whether more expensive or less expensive properties happen to sell in a particular month.

The benchmark suggests a more modest decline in underlying home values than the average price alone might indicate.

It's also worth remembering that the average residential price for the first 10 months of 2026 remains just 0.8% below the same period last year.

Prices are softening, but the evidence points toward a gradual adjustment rather than a dramatic correction.

Not every Ottawa neighbourhood or property type is experiencing the same market

The differences between property types remain significant.

Single-family homes had 4.0 months of inventory in October, with a benchmark price of $699,200, down just 0.8% year-over-year.

Townhouses had 3.6 months of inventory, although their benchmark price declined 4.3% to $539,800.

Apartments continue to face the greatest challenges. Inventory reached 7.4 months, and the benchmark price fell 5.3% to $377,500.

Location also makes a difference.

Ottawa's suburban markets accounted for nearly 72% of October sales. Inventory was relatively tighter in Ottawa Suburb East at 3.5 months and Ottawa Suburb West at 3.7 months, compared with 6.6 months in Ottawa Centre and 7.3 months in Ottawa Rural East.

These differences demonstrate why a citywide statistic cannot tell you exactly what your home is worth or how much negotiating power you may have.

What does this mean for Ottawa buyers?

Buyers continue to benefit from more selection and generally less competition than in recent years.

This creates opportunities to compare properties carefully, negotiate pricing and conditions, and make decisions without unnecessary pressure.

However, buyers shouldn't assume every seller is prepared to make substantial concessions. Well-priced properties in desirable neighbourhoods can still attract considerable interest.

The best opportunities will depend on the specific property, its asking price and the competing listings available.

What does this mean for Ottawa sellers?

For sellers, October's improvement in market balance is encouraging, but competition remains significant.

With more inventory available than last year, buyers can afford to be selective. Properties that are overpriced or poorly presented may struggle to attract attention.

Accurate pricing, professional marketing and realistic expectations remain essential.

Sellers should also recognize that the market varies considerably by neighbourhood and property type. A detached home in a popular suburb may face very different conditions from an apartment condominium in the city centre.

The Bottom Line

October brought some welcome signs of stabilization to Ottawa's housing market. Sales improved modestly, new listings declined and the balance between buyers and sellers became somewhat more favourable to sellers.

Nevertheless, buyers continue to enjoy greater choice, and prices are showing some softness.

As we head toward winter, economic uncertainty, employment conditions and borrowing costs may continue to influence buyer confidence.

For now, Ottawa remains a market where informed decisions, realistic pricing and local knowledge make all the difference.

Thinking of buying or selling in Ottawa? A TRU REALTOR® can help you understand what today's market conditions mean for your particular neighbourhood, property and real estate plans.