In an encouraging sign, February 2026 new-home sales were higher than they were at this time last year, but the market recovery remains a work in progress.
There were 278 new-home sales in February, which is up 6.5 per cent over the 261 sold last year, according to the latest Greater Ottawa New Home Market Report prepared by PMA Brethour Realty in partnership with the Greater Ottawa Home Builders’ Association.
Sales were also up nine per cent over January, which saw 255 homes sold. But February sales are lagging a hefty 29 per cent below the 10-year average of 391, “underscoring that the market has yet to return to historical norms,” says PMA’s Ottawa president, Cheryl Rice. And for the year to date so far, sales are down six per cent (533 versus 567).
“Historically, monthly activity from January through May tends to exceed the 300-unit mark, meaning Ottawa’s new-home market is still operating below its typical spring absorption range,” Rice says.
She also noted that inventory shifted in February, marking the first contraction since December 2022. “Even so, supply remains healthy and close to pre-pandemic levels, reinforcing a market where buyers retain meaningful choice and builders must compete more directly on pricing and product positioning.”
Rice points to a couple of encouraging signals. The much-anticipated GST rebate for first-time buyers of newly built homes has finally become law, allowing eligible buyers to receive 100 per cent of the five per cent GST on homes priced up to $1 million and a reduced rebate on homes between $1 million and $1.5 million. “The measure is intended to address affordability challenges for first-time buyers by reducing up front costs, while supporting demand for new construction.”
Several builders have already begun promoting the rebate.
And the local economic picture improved in February, with Ottawa–Gatineau adding 2,500 jobs to push the unemployment rate down to 5.5 per cent. “Nationally, job growth was far weaker, with just 1,100 jobs added and unemployment holding at 6.6 per cent,” she says. “Despite federal workforce adjustments and broader uncertainty in the National Capital Region, the local labour market is showing notable resilience, providing an important layer of underlying support for housing demand.”
Townhomes remained the most popular housing type at 54 per cent, but singles had a strong showing, capturing 41 per cent of the market.
