Ottawa’s real estate market continued its typical winter slowdown in February, but the latest numbers suggest the market may be entering an important transition period as we approach the spring season.
A total of 780 homes sold in February, down 6.8% compared to February 2025 and well below the five-year February average of 990 sales. This makes the current winter one of the slowest Ottawa has experienced in the past decade.
However, the headline sales numbers don’t tell the full story.
Prices Are Beginning To Firm Up
Despite the slower pace of sales, benchmark home prices actually increased month-over-month across every property type in February, including single-family homes, townhomes, and condo apartments.
Because the MLS Home Price Index adjusts for seasonal changes and sales mix, these increases suggest genuine upward price movement rather than the typical seasonal bump that occurs as spring approaches.
The average home price in Ottawa reached $662,773, down just 1% from last year, while the median price came in at $615,450, a modest 3.1% decrease year over year. Overall, these changes indicate a market adjusting to higher inventory rather than experiencing significant downward pressure.
Buyers Have More Choice
One of the biggest shifts in Ottawa’s housing market right now is inventory.
Active listings reached 2,928 homes at the end of February, an 11.1% increase compared to the same time last year. This growing supply is giving buyers more options and more time to make decisions compared to the highly competitive markets seen in previous years.
Months of inventory currently sits at:
- Single-family homes: 3.8 months
- Townhomes: 2.7 months
- Condo apartments: 5.6 months
These levels indicate a balanced market, where neither buyers nor sellers have a strong advantage.
Townhomes Are Leading Activity
Townhomes were the most active segment of the market in February, with sales performing stronger than typical for this time of year.
At the same time, rising inventory in this category has placed some downward pressure on prices, creating opportunities for buyers looking for more affordable entry points into the market.
What Could Happen This Spring?
Looking ahead, industry forecasts suggest that demand could gradually strengthen throughout 2026 as borrowing costs ease.
If that demand materializes in the coming months, Ottawa’s current inventory levels may support a more active spring market while preventing the dramatic price spikes seen in past cycles.
For buyers, this could mean a rare window where there is still choice in the market before competition increases again.
For sellers, pricing strategy and presentation will likely be more important than ever as buyers take more time to evaluate their options.
One thing is clear: Ottawa’s housing market is evolving — and the upcoming spring market may be the next major turning point.
