The real estate market in Ottawa is typically always in a state of flux. While there are stable periods, the ever-changing real estate landscape means that, from one season to another, things can shift drastically, favouring either buyers or sellers—or, in some cases, both.

For 2026, several market trends are worth keeping an eye on for both buyers and sellers. These predictions, while not guaranteed to come to fruition, tend to paint as accurate a picture as possible of what to expect when you’re ready to either jump into the market, get a property off your hands or both.

Interest rates

Interest rates play a significant role in consumer demand, housing prices, and borrowing costs. When rates rise, you’ll see lowered purchasing power and demand, which can slow down home sales and shift home prices to adjust to fewer buyers. The opposite happens when they lower.

The Bank of Canada lowered interest rates three times in 2025—January, September, and October—bringing the rate to 2.25% by the fourth quarter. Predictions for the upcoming year note that interest rates are expected to remain stable, with a slight dip again in the second half of the year, a move likely driven by rising inflation.

This means that people looking to buy in 2026 can take advantage of more predictable loan costs, while people who got into the market when rates were at their lowest could see new mortgage terms that lead to higher payments.

Home Pricing

People can expect prices to rise slightly in 2026, albeit modestly at 3-5%, with the average being 2-4%.

Overall, though, predictions are forecasting that the home pricing will remain much more stable than it was a few years ago during the pandemic, with annual price growths that tend to stay within the normalized range of 1-3%.

However, home prices will depend mainly on the type of dwelling. For example, that 3-5% is most likely to affect detached and semi-detached properties.

Condos, on the other hand, have a much higher inventory and could see some pressure to lower prices because there are more properties than buyers on the market.

The stabilization of home prices is likely due to the expected stability of interest rates, as well as an increase in buyers who now have more purchasing power because of the lower rates throughout 2025.

Inventory

Inventory levels are rising in the Ottawa area. While different property types play a role in the level of available properties, 2026 will see a small increase across all property types, including single-detached homes, townhomes, and condos.

However, the significance of each property type increase will vary. For example, townhouses and detached houses may see a slight jump in supply, while condos could see a sharper increase. More inventory in Ottawa’s real estate market isn’t expected to shift the market too drastically, and it will likely remain balanced between both buyers and sellers.

Inventory rates are changing for various reasons, including mortgage renewals that may see more people jump into resale territory, as well as new condo completions in 2025.