Ottawa Market Update

Ottawa Real Estate
Q1 2026

Current conditions, neighbourhood-by-neighbourhood breakdown, and what the data means for buyers and sellers right now.

Published January 2026  |  Updated Quarterly

Avg. Residential Sale Price
$698K
↑ 4.2% year-over-year
Avg. Days on Market
24
Easing from 2025 peak
Properties Sold (Q2)
4,580
↑ 6.8% vs Q2 2023
Sale-to-List Price Ratio
99.1%
Near list-price sales

Market Analysis

What the Ottawa Market Is Doing Right Now

Ottawa's Q1 2026 market reflects a city finding its balance. After the sharp rate-driven correction of 2022–2023, residential prices have stabilised and begun a modest recovery, with average prices up approximately 4.2% year-over-year across all property types. The market is neither the frenzied seller's market of 2021 nor the buyer-favoured correction of late 2022. It is measured, competitive in the right segments, and still moving.

The most significant dynamic in Q1 2026 has been inventory, still historically low relative to demand, particularly in the $550K–$800K range that captures most Ottawa family buyers. Properties priced correctly and presented well continue to sell within 2–3 weeks, often at or above list price. Overpriced listings are sitting visibly, with average days-on-market for expired or relisted properties exceeding 60 days.

Who Has Leverage Right Now

Sellers of well-maintained, properly priced homes in Westboro, Barrhaven, Kanata, and the Glebe retain meaningful negotiating strength in Q2. These neighbourhoods continue to see multiple offers on desirable listings, particularly the first weekend on market. Buyers with flexible closing and pre-approval in hand have an advantage over those still in the financing stage.

For buyers, the window between spring (peak competition) and fall (reduced inventory) offers a strategic opportunity. Showings are easier to arrange, less frenzied, and sellers are often more willing to accommodate conditions including home inspections, which was not always the case during the 2021 peak.

Rate context: The Bank of Canada completed its rate-cutting cycle through 2025, bringing the policy rate from its 5% peak to approximately 3.25%. Five-year fixed mortgage rates have followed, returning below 5% for qualifying buyers. The entry window that existed in 2023 and 2024 ahead of the recovery has largely closed. Buyers entering in 2026 are doing so in a more competitive, better-funded environment with stronger price support across Ottawa neighbourhoods.

Investment Properties in Ottawa

Ottawa's investment property market has been impacted by the same rate environment affecting residential buyers, higher debt costs compressed cap rates and cash flow projections significantly in 2022–2023. Q1 2026 shows early signs of stabilisation, with small multi-unit properties (2–4 units) in Nepean, Gloucester, and central Ottawa attracting investor interest again as rates ease. Kanata North remains a strong rental demand market given the tech workforce concentration.

Single-family investor activity remains cautious. Buyers expecting strong immediate cash flow will be challenged; buyers with longer time horizons and larger down payments are finding more viable entry points than were available 18–24 months ago.

What This Means If You Are Buying

A well-prepared buyer with financing in order can expect a 2–6 week search in most Ottawa price ranges, with 1–2 offer attempts before success in a typical scenario. Spring competition has eased, making room for inspection conditions in most cases. Budget accurately for closing costs (1.5–4% of purchase price beyond your down payment) and be decisive when a property that fits is found, well-priced listings do not wait.

What This Means If You Are Selling

Pricing accuracy matters more in Q1 2026 than it did in 2021. A 5% overpricing in the current market extends time on market significantly and often results in a lower final sale price than if the home had been priced correctly from day one. Preparation, fresh paint, professional photography, decluttering, continues to generate meaningfully better results than listing "as-is." Spring has passed its peak, but motivated summer sellers can still achieve excellent results in the right segments.

By Neighbourhood

Q1 2026 Market Snapshot by Area

A broad look at how individual Ottawa areas are performing. Click any neighbourhood name for a full area guide including lifestyle, housing mix, and long-term investment outlook.

NeighbourhoodAvg. Price RangeAvg. Days on MarketMarket ConditionTrend
Westboro$700K–$1.4M14 daysSeller's market, limited inventoryCompetitive
The Glebe$900K–$2M+18 daysHigh demand, premium pricingStrong
Kanata$600K–$1M22 daysBalanced, tech-sector drivenStable
Barrhaven$550K–$850K25 daysFamily demand steady, good inventoryBalanced
Nepean$550K–$850K28 daysValue-oriented buyers activeStable
Orleans$500K–$750K30 daysAffordable entry point, bilingual demandGrowing
Stittsville$550K–$800K26 daysNew construction activeStable
Manotick$700K–$2M+38 daysLow inventory, long hold marketSelective
Riverside South$550K–$800K24 daysGrowth corridor, LRT catalyst aheadGrowing

Data reflects approximate Q1 2026 conditions based on OREB market activity. Individual property outcomes vary. Consult Accliv Group for property-specific analysis.

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