Ottawa’s real estate market has always been hot, but in recent months there have been ups and downs. Now that the middle of the year is upon us, how is the housing market in Ottawa performing? What can you expect to run into when purchasing or selling a home? Tapping into the trends in the housing market will keep you ahead, so you will know when to make an offer or when to walk away.
The Past 6 Months of 2021
Since the beginning of the year, the market has been “hot,” meaning sellers have the upper hand. For those who are buying, you should increase your budget just a little and be prepared to haggle for a property that you truly want.
However, there is some good news. In previous years and the beginning of 2021, there was a low supply of homes for sale in Ottawa, which increased the demand. Because of that, prices rose astronomically. Buyers bought some homes at those high prices, but now that the demand is tapering off, the prices are expected to lower slightly. According to Canada Mortgage and Housing Corporation, it might take another year or a year and a half for the market to return to a balanced state.
For example, according to statistics from WOWA, June 2021 ended with 2,131 sales, with the average property price going for $659,929. Luckily, Ottawa home prices are still significantly lower than those in Toronto and Vancouver.
What to Expect in a Shifting Housing Market
It’s predicted that buyers are going to have an easier time in the future. You can expect that there is going to be a larger supply of houses for sale and at better prices. In turn, this will lower the amount of offers each property sees, making it easier for buyers to get the house they want.
Furthermore, sellers might have to put in some effort. As mentioned earlier, when the housing market had far less of a supply, sellers could put their property up as-is and still get an amazing offer. Now that the buying frenzy has dwindled down, sellers are going to have to put their best foot forward—staged interior, cleaned up yard, and so on.
With the demand reduced, people can now truly think about what they are buying and selling. This enables buyers to make the choice they feel most comfortable with rather than scrambling to make a purchase. Housing inspections are even starting to make a comeback.
So, what does that mean for the housing market? Lower prices, fewer bidding wars, and more satisfied home buyers.
Conclusion
The pandemic had disrupted the housing market in Ottawa, but now things are beginning to re-stabilize throughout the region. With more inventory and more properties listed for sale, buyers will be happy to know that they should be able to find the home of their dreams. Meanwhile, sellers should tap into the resources provided by their real estate agent, so they can get a reasonable value for their home.