How's The Ottawa Real Estate Market?
We’re into the first 3 weeks of 2021 and I’m asked this question 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!
It’s slim pickings out there. Inventory has been so low, there aren’t enough houses for sale to meet buyer demand. For perspective, inventory was down almost 60% in 2020.
What does it mean for buyers? Low inventory means You might have to give up some items on your “nice to have” list. Find a home with your “must haves” and upgrade over time. It also means that you have to be on your toes when you go house hunting. In November, for example, 29 out of 36 2-storey townhomes in Barrhaven sold in under 9 days. Here’s some advice. Get pre-approved ASAP. Mortgage interest rates are super low out there. Quick decision makers are proving to be the real winners. Don’t have a mortgage broker yet? Feel free to reach out and I’ll connect you.
What does it mean for sellers? You’re in the driver’s seat and there are strategies for getting top dollar for your home. But after your home is sold and you’re buying a new home, you’re probably not going to be in the driver’s seat anymore. If you have desirable property, it might be better to buy first before you sell to guarantee you’re getting the home you want.
Home prices in Ottawa are rising. In 2020, home prices in Ottawa rose by a whopping 19.5% over 2019 prices. Sellers are definitely doing the happy dance! Hooray! It’s great news for your pocketbook. But remember….you’ll likely need it when buying your next home.
Buyers, this means that you absolutely must know how much you can afford. 2020 was the year of the multiple offer. With low inventory and high buyer demand, you can expect to pay more than the asking price. Also know that it’s a strategy to list lower to attract all of those eager buyers out there. 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:
Your equity (what your home is worth minus how much you owe on it) is likely 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 2020, but it’ll go up. Our market continues to thrive, despite the challenges of the pandemic. The low mortgage rates are helping buyers enter the market, which increases which allows home prices to rise. Keep your home maintained and updated for your enjoyment now, but also for your future buyer.
Any questions? Give me a call!