Looking to stay up-to-date on the Ottawa housing market? Whether you're buying, selling, or just watching from the sidelines, this August 2025 real estate market update breaks down everything you need to know — straight from an experienced Ottawa real estate agent.
We’ll cover:
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What’s happening with home prices and condo sales in Ottawa
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What the Bank of Canada’s interest rate decision means for you
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A deep dive into “The Mizrahi Mess” at The Residences at Island Park
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What every buyer needs to know about pre-construction risks in Ottawa
Let’s get into it.
Interest Rates in Ottawa: Holding Steady, But Caution Still Warranted
On July 30, the Bank of Canada held its key rate steady — no changes for those with variable-rate mortgages. Meanwhile, fixed mortgage rates have edged up slightly.
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5-year fixed mortgage: ~4.1% (Big 6 banks)
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5-year variable mortgage: ~4.3%
Most analysts expect rates to remain relatively stable through the rest of 2025 — but, as any good Ottawa realtor will tell you, never base your entire plan on rate forecasts alone.
Ottawa Freehold Homes: A Return to Seasonal Norms
In July 2025, 822 freehold homes sold in Ottawa — down from June’s 1,101 but slightly above July 2024's total of 809. This aligns with typical seasonal patterns, as we transition from a hot spring market into a slower summer.
Key Stats:
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Average freehold home price: $793,000
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Month-over-month price drop: 4.3% (expected for this time of year)
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Months of inventory: 3.36 (still a low level, favoring sellers)
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Sales-to-new listings ratio: 49% (balanced market)
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Average days on market: 31
While prices ticked down slightly from June, this doesn’t signal a drop in values — more so a reflection of what's on the market. Well-presented, well-located homes are still moving fast and often receive multiple offers.
If you're planning to sell your home, pricing and presentation are still key — especially in this more balanced market.
Ottawa Condos: Flat Prices, But Not a Flat Market
Ottawa’s condo market in July 2025 was… steady.
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287 condo units sold (down from June’s 319)
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Average sale price: $436,000
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Prices have hovered between $410K and $455K for more than 3 years
But don’t let that lull fool you — the condo market in Ottawa is highly segmented:
Inventory by Type:
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Suburban townhouse-style condos: 2.89 months (tight market)
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Downtown apartment-style condos: higher inventory, favoring buyers
If you're buying a condo in downtown Ottawa, this is an excellent time to shop. Inventory is high, competition is low, and savvy buyers have bargaining power.
If you're selling a condo in Ottawa, especially a downtown 1- or 2-bedroom, you must price aggressively. Otherwise, you risk sitting on the market — or worse, getting overlooked entirely.
The Mizrahi Mess: What’s Happening at The Residences at Island Park?
If you've talked to any Ottawa real estate agent lately, you've likely heard about the crisis at The Residences at Island Park — the city’s most expensive pre-construction condo development, and now one of its most controversial.
Here's What Happened:
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In 2017, Mizrahi Developments launched sales at 1451 Wellington with prices of $1,100–$1,300 per square foot — far above anything else in the Ottawa condo market at the time.
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72 of 93 units were sold in pre-construction
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Construction began in 2019 with a target completion of 2023
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By 2024, construction had stalled with the building 85% complete
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Mizrahi filed under the Companies' Creditors Arrangement Act (CCAA) after running out of money
Now, buyers are being asked to pay up to 50–60% more than their original contracts — or risk having their agreements terminated under the CCAA’s “Disclaimer Provision.”
Why It Matters for Ottawa Real Estate
This case is a cautionary tale about the risks of buying pre-construction in Ottawa — especially in high-end projects. When a project goes sideways, the buyers — not the developers — often pay the price.
If you’re considering investing in Ottawa real estate via a pre-construction purchase, you need to understand the potential downsides:
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Project delays (sometimes years)
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Price increases before closing
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Financing challenges if rates rise
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Developer defaults or bankruptcies
Pro tip: Before signing anything, work with a realtor in Ottawa who can walk you through the risks and help you ask the hard questions.
Should You Avoid Pre-Construction Homes in Ottawa?
Not necessarily. But if you’re buying pre-construction, you're making a bet on the future. That bet comes with risks — and they’re not always clearly explained in the sales office.
Ask yourself:
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Can I handle delays of 2–3 years?
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What happens if mortgage rates rise before I close?
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Will I still qualify for financing?
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Can I absorb a drop in value before occupancy?
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What if the builder can’t complete the project?
If you’re financially stable and understand the risks, pre-construction can still be a smart play. If not, resale might be a safer path.
Final Word from Your Ottawa Realtor
Ottawa’s real estate market continues to offer opportunity — whether you're buying your first home, upsizing, downsizing, or investing. But like every market, it's evolving, and success requires good information and even better guidance.
If you have questions about buying or selling in Ottawa — or want to discuss a specific neighborhood, home type, or investment strategy — I’d be happy to chat.
📅 Book a discovery call using my Calendly link
📞 Or contact me directly — info below
Looking for an Ottawa Realtor Who Tells It Like It Is?
Let’s talk. No pressure, no fluff — just real talk about your goals and the market.
Thanks for reading, and see you in September!
