More homes hit the market in September, giving Ottawa buyers more choice and shifting the balance of the market further in their favour.
Ottawa’s real estate market held relatively steady in September, but beneath the surface, the market continued to soften.
A total of 1,010 homes sold through the MLS® System, a slight 0.8% increase from August, but down 6.6% from September 2025. More importantly, the number of new listings rose sharply. 2,927 homes came onto the market in September — up 38.1% from August and 3.0% from last year.
That growing gap between supply and demand is one of the biggest stories in the Ottawa market right now.
More choice for buyers
Active listings climbed to 4,813 homes, up 7.1% from August and 7.9% from last year. Months of inventory increased from 4.5 to 4.8, while the sales-to-new-listings ratio dropped significantly from 47.3% in August to just 34.5% in September.
In simple terms, roughly one home sold for every three new listings that came onto the market.
For buyers, that means more options, more time to make decisions, and potentially more negotiating power.
For sellers, it means pricing and presentation are becoming increasingly important. Homes are taking longer to sell, with the median time on market increasing from 22 days last September to 27 days this year. Homes also sold for an average of 97.5% of their original listing price, compared with 98.1% a year ago.
Prices remain relatively stable — but there are signs of softness
The average Ottawa home sold for $685,640 in September, down 1.0% from a year earlier and nearly unchanged from August. The median price was $625,000, down 0.8% year over year.
However, the MLS® Home Price Index tells a slightly different story.
The benchmark price fell to $623,500, down 2.2% from August and 0.3% from September 2025. September’s monthly decline was the largest August-to-September drop in the HPI’s history, which dates back to 2005.
That doesn’t necessarily mean Ottawa is entering a major price correction. One month isn’t enough to establish a trend. But combined with weaker absorption and rising inventory, it is a signal worth watching.
Not every part of Ottawa is experiencing the same market
Ottawa’s suburban markets continue to account for the majority of activity, representing nearly 73% of September sales. Ottawa Suburb West had the strongest absorption, with 3.7 months of inventory and a 40.7% sales-to-new-listings ratio.
Conditions were considerably softer in Ottawa Centre and the rural markets. Ottawa Centre reached 6.8 months of inventory, while rural submarkets ranged from 5.8 to 6.5 months.
Apartments remain the clearest pressure point. Inventory increased to 7.3 months, while the benchmark price fell 6.1% year over year to $380,800.
What happens next?
The big question heading into October and November is whether September’s surge in listings was temporary or the beginning of a longer period of elevated inventory.
Historically, new listings tend to decline through October and November. If that happens again, we could see absorption improve as the fall progresses.
But if inventory remains elevated, the sales-to-new-listings ratio stays low, and the HPI continues to decline, the case for a broader price adjustment will become stronger.
For now, the Ottawa market is not telling us that prices are collapsing. It is telling us something more nuanced:
Buyers have more choice. Sellers have more competition. And the balance of the market is continuing to shift.
October and November will give us a much clearer picture of where Ottawa’s housing market is heading as we move toward the end of 2026.
