We’re into the first 2 weeks of August 2022 and I’m asked how the Ottawa real estate market is doing nearly every day. And my answer is the same. It depends. Are you buying a house or selling a house? Here’s what you need to know!
We’re moving into a more balanced market. We’ve been in a very strong seller’s market for the past couple of years. With interest rates pulling back buyer demand and houses being continually added to our market inventory, we are on the cusp of returning to a more balanced market.
What does it mean for buyers? More inventory means you have more of a choice and you may not have to compromise your “must haves”. It doesn’t mean that you can drag your feet though. Getting pre-approved is still on your to do list. Mortgage interest rates are expected to rise even more in the near future and you’ll want to take advantage of the 90-day lock-in rate.
What does it mean for sellers? The hike in the interest rate has caused buyers to put on the brakes more heavily than what is typically expected in a summer market. You’re not completely in the driver’s seat anymore but there are strategies for getting top dollar for your home.
Home prices in Ottawa are falling overall, but the market is not collapsing. In July 2022, home prices Ottawa as a whole rose by 11% over July 2021 prices.
Sellers, I know that you’re a little nervous because the change is pretty drastic in comparison to the last two years. But remember, we are still seeing single-digit increases and even better increases in certain neighbourhoods for certain home types.
Buyers, this doesn’t mean that you’re able to present a lowball offer. We are FAR from that. What it does mean is that you now have the opportunity to breathe a bit more than you could in the past 2 years. You’re not going to be bidding against 20 other buyers on offer night. “Offer nights” are a thing of the past right now. We’re back to negotiating and that means that you may be able to include a financing condition or a home inspection. Halleluja! Work with a great agent (ahem…) who can give you some great strategies to win the bid.
What if you’re not buying or selling a home this year? If you’re thinking “well is this great but I’m not moving anytime soon”, here is what you should know:
Sellers, your equity (what your home is worth minus how much you owe on it) is likely still increasing. In the last 64 years, the Ottawa market has seen a decrease in average home prices only 5 times. It may not increase like it did in in spring 2022 but it’ll go up. Would you have sold for more money in the spring? Yes. But the sky is definitely not falling. Your big takeaway? Keep your home maintained and updated for your enjoyment now, but also for your future buyer.
Buyers, this means that you should keep saving and keep an eye on home prices. Interest rates are rising but still reasonable. You may want to jump in in 2023.
Any questions? Give me a call!