This would've been impossible in January...

Read my Market Update for Ottawa Townhomes from June 2026

This month, I want to tell you about a couple I recently helped buy a townhome, because their story perfectly sums up what's happening in the Ottawa market right now.

When we started looking earlier this year, it was rough.

Townhomes were flying off the market. The good ones were getting multiple offers within days, and we kept finding ourselves in bidding wars that didn't make sense. We lost out more than once.

Eventually, they decided to take a step back from their search.

When they came back, they returned to a completely different market.

Something happened that none of us could have predicted. The market slowed down. Not a little. A lot.

Townhomes that would have sold in a weekend back in January were suddenly just... sitting there.

Sellers were listing high and then reducing their prices because nothing was moving. Even beautiful, fully updated homes were waiting weeks for a buyer.

The timing worked perfectly for my clients!

When they found a home they loved it was originally priced above their budget. We waited patiently for the seller to reduce their expectations (price) and when the time came, there was another offer on the table, but things were different.

They ended up buying it for less than the asking price and were able to include all of the conditions they needed.

A few months earlier, that would have been almost impossible.

The numbers tell the same story.

If you've read my last few market updates, you know that townhomes have consistently been one of the strongest segments of the Ottawa market. That's why this shift is so interesting.

IN MAY:

• Townhome sales dropped 14.3% compared to last year, the largest change of any home type

• Inventory increased by roughly 28%

• Average prices remained steady at $557,500

Why are townhomes being affected more than other property types?

It comes down to one simple thing.

First time buyers aren't willing to overpay just to get into the market anymore.

When there are plenty of options available, there's less pressure to rush into a decision out of fear of missing out. Buyers can take their time, compare homes, and negotiate.

Something else to know is that a large portion of Ottawa's townhome inventory was built recently. With Ontario's new HST rebate now eliminating sales tax on new construction homes, resale townhomes are suddenly competing directly with brand-new ones.

More options for buyers means sellers need to be more realistic with pricing.

Why am I telling you all of this?

Because for years, townhomes have been one of the hardest property types to break into. Right now, that door is a little more open than it has been in a long time.

And despite some of the headlines you've probably seen, there's no reason to panic.

The Bank of Canada held interest rates steady again this week. Ottawa home prices are generally flat compared to last year. The market is not falling apart.

It's simply becoming more balanced. And if you're thinking about buying, that's not bad news at all.