From the blog...

OTTAWA MARKET UPDATE: MAY 2022

The market has really changed drastically in the past 4 to 6 weeks. This is the fastest I have ever seen a market shift in my career.

Why has the market shifted?

There are really several factors at play right now. Interest rates have been steadily rising through the first half of this year. This of course is going to have an impact on the affordability of homes for buyers. Inflation and the cost of everything else have gone up and this leaves households with less money available for housing. Talk of a recession, the war in Ukraine, buyer fatigue, and the trillions of lost value in the stock market. These are all some of the factors involved. I also see the negative news that an imminent bubble bursting could happen with prices. Negativity tends to be news that sells. This certainly has an impact on qualified buyers and their reluctance to get into the market now. I don’t necessarily blame them either.

What should a seller do now?

What is not reported is that Ottawa is still in a sellers market. Sellers just don’t have the extreme leverage in the market that we have been accustomed to seeing. They need to be more realistic about the market they are in right now. Homes are not selling as fast and in many cases, buyers have conditions to fulfill. This is not necessarily a bad thing on either side. Sellers will adjust their prices to the current market and have to be patient as it’s taking longer to sell their homes. Houses are off their peak value but holding out for yesterday’s prices will not do any good.

What about buyers?

For buyers, there are more houses to choose from and better value out there right now. The challenge with buyers is timing. Many buyers have pulled back because they don’t want to buy near the peak of the market. Some are betting that the market will continue to decline and they will buy at a lower price. If there’s one thing I’ve learned in my career and as an investor. Never try to time the market. It just doesn’t work. This is advice from Warren Buffet. There is good value out there now and I believe the long-term prospects of Ottawa‘s market are good. This advice is only applicable to buyers not speculating in the market. If they are looking long-term I think now is a good time as any.

There’s a lot to navigate in Ottawa‘s real estate market right now.  If you want to know what’s happening in your neighbourhood please feel free to reach out to our team.