If you have been wondering what is actually happening with home prices in Ottawa, you are not alone.

Everywhere you turn, there seems to be a different opinion. Some say prices are falling. Others say the market is stabilizing. And then there is always someone who insists you should either buy immediately or wait it out.

So let’s slow this down and talk about what the numbers are actually telling us.

Because the truth is much less dramatic than the headlines.

Ottawa entered 2026 with something we have not seen consistently in years: balance. And when a market is balanced, prices tend to adjust in a healthy, predictable way rather than swing wildly.

Let’s Start With the Big Number

In January, the average residential sale price in Ottawa was $641,436.

That is about 4.5% lower than this time last year.

Now before that makes you nervous, it is important to understand what is driving that shift.

Winter markets are typically softer. Buyers move a little slower, inventory builds, and prices often adjust seasonally. This is normal real estate behaviour, not a warning sign.

What we are seeing right now is not a market that is struggling. It is a market that is recalibrating after several years of unusual conditions.

And honestly, that is exactly what a healthy housing market should do.

Detached Homes Are Holding Strong

If there is one segment showing real stability, it is detached homes.

The average price came in at $793,874, down only 3.6% year over year. Even more telling is the median price, which held firm at $750,000, unchanged from last January.

When the median stays flat, it usually means sellers are not panicking and buyers still see long-term value.

In simple terms, detached homes are adjusting, not dropping.

For homeowners, this should feel reassuring. Stability is a sign that the foundation of Ottawa’s housing market remains very solid.

Townhomes: Slight Price Adjustments, More Buyer Opportunity

Townhomes experienced a modest pricing shift, with the average price landing at $536,106, roughly 3.3% lower than last year.

The main reason? Supply increased significantly.

When more homes hit the market, buyers naturally gain a bit more negotiating power. That does not mean sellers cannot achieve strong results. It simply means pricing strategy matters more than ever.

Interestingly, benchmark prices actually ticked up compared to December, which tells us this segment still has underlying strength.

For many first-time buyers, townhomes continue to be one of the most important entry points into the market.

And right now, there is more breathing room than we have seen in quite some time.

Condos Saw the Biggest Adjustment, But There Is More to the Story

The condo market recorded the largest year-over-year price change.

The average price dropped to $388,307, about 12.1% lower than in January 2025.

At first glance, that number can feel dramatic. But context matters.

Sales improved compared to December, and months of inventory declined. That combination typically signals that buyers are stepping back into the market.

In many housing cycles, condos react first to market changes. They often soften earlier, but they are also frequently the first to stabilize.

What we may be seeing right now are the early stages of that stabilization.

So, Are Ottawa Home Prices Falling?

Not exactly.

A better word would be adjusting.

There is a big difference between a market correction driven by panic and one guided by normalization.

Today’s buyers are more thoughtful. They are comparing properties, negotiating more, and focusing on long-term affordability. That behaviour naturally encourages realistic pricing.

Meanwhile, well-priced homes are still attracting strong interest.

This is what balance looks like.

What This Means if You Are Buying

For buyers, this environment can create real opportunities.

You likely have:

• More choice than you had a few years ago

• Less competition

• More time to make decisions

• Greater ability to negotiate

Markets like this reduce pressure and allow you to purchase with confidence instead of urgency.

What This Means if You Are Selling

The days of simply listing your home and naming any price are behind us. But that is not bad news.

Homes that are priced properly and presented well are still selling.

Success in today’s market comes down to preparation and strategy.

Understanding how buyers are thinking and positioning your home accordingly makes all the difference.

The Bigger Picture: Ottawa Remains a Stable Market

The most important takeaway from January is this:

👉 Ottawa is not crashing.
👉 Ottawa is not overheating.
👉 Ottawa is stabilizing.

And stable markets are incredibly powerful because they support smarter, more confident real estate decisions.

Looking ahead, many experts expect conditions to improve gradually as interest rates ease and more buyers return to the market. If that happens, spring could bring stronger activity than many people anticipate.

Not chaotic.
Not frenzied.

Just steady.

Thinking About Making a Move This Year?

Whether you are buying, selling, or simply trying to understand where your home stands in today’s market, having the right information is everything.

If you are curious about:

• Your home’s current value

• Pricing trends in your neighbourhood

• Buyer behaviour in your price range

• Or the right timing for your move

Getting personalized advice can help you move forward with clarity and confidence.

The Ottawa market is adjusting in a healthy way, and with the right strategy, it can create meaningful opportunities.