In short
Homes sit longer, prices soften, bidding wars thin out and there's room to negotiate price and conditions.
It's the mirror image of a seller's market, and markets can shift within a single season.
How a buyer's market is measured
The most common yardstick in Canada is the sales-to-new-listings ratio, or SNLR. It divides the number of homes sold in a month by the number of new listings that came on the market that month.
The Canadian Real Estate Association (CREA) treats a ratio between 40% and 60% as balanced. Below about 40% generally points to a buyer's market, and above about 60% to a seller's market.
Inventory tells a similar story. When unsold listings pile up and it would take many months to sell them all at the current pace, buyers have more choice and less pressure.
What changes for buyers
Homes stay on the market longer, so you have time to compare, book a second showing and think it over.
Bidding wars become less common. Many sellers accept offers with conditions such as financing and a home inspection, and price reductions show up more often.
You may also have room to negotiate the closing date, appliances or small repairs, not just the price.
Even in a buyer's market, a well-priced home in a popular neighbourhood can still draw more than one offer, so it pays to be ready with your pre-approval.
What it means for sellers
Pricing realistically from day one matters more, because an overpriced listing can sit and lose attention.
Presentation, flexible showings and being open to conditional offers help a home stand out when buyers have plenty of choice.
Sellers who also plan to buy can benefit on the purchase side, since the softer conditions apply to the home they're moving into as well.
Markets shift, and they are local
Conditions can change within a single season, and they often differ by price range and home type. Condo apartments can lean toward buyers while detached homes in the same city stay balanced or competitive.
In Ottawa, the Ottawa Real Estate Board (OREB) publishes monthly sales and listing figures, which is the best way to see where the local market sits right now.
Common questions about buyer's market
What is considered a buyer's market in Canada?
A buyer's market is generally when the sales-to-new-listings ratio falls below about 40%. CREA treats 40% to 60% as balanced, so a lower reading means listings are outpacing sales and buyers have more choice and negotiating room. The ratio is tracked monthly.
Is it a good time to buy in a buyer's market?
A buyer's market usually gives you more choice, more time and more room to negotiate, which many buyers find easier. Whether it's the right time for you still depends on your budget, your mortgage pre-approval and how long you plan to stay in the home.
Can you include conditions in an offer in a buyer's market?
Yes, conditions such as financing and a home inspection are much more commonly accepted in a buyer's market. With fewer competing offers, sellers are often willing to work with conditional offers rather than risk the home sitting longer. Your lawyer can explain how each condition protects you.
How do I know if Ottawa is a buyer's market right now?
Look at the latest monthly figures from the Ottawa Real Estate Board, especially sales versus new listings and months of inventory. Check by property type too, since apartments, townhouses and detached homes can sit in different market conditions at the same time.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.