It looks like we are into another seller’s market for 2020. The predictions are that the numbers will once again keep Ottawa in the Seller’s market range.
WHY?
There just isn’t enough housing to meet the demand! Even though builders are building at a fevered pace, they are, in many cases, a year or so away from delivering finished new homes. Plus there just isn’t enough home owners willing to or needing to put their homes up for sale.
WHAT’S THIS ALL MEAN FOR YOU?
It depends on were you fall in the real estate market. First time buyers are going to have to come up with excellent financing well before they can even attempt to bid on a home. They should also be prepared for bidding wars. It has not been unusual over the past couple of years to hear of ten, fifteen, twenty or more offers on the same home. And, in many cases, those homes are perfect for and marketed to first time buyers. Once we get into more luxury homes the demand as would be expected cools off but not that much. We still see many multiple offers on $600,000 to $900,000 homes.
If your buying and selling you have the goods and the bad. You’ll likely get much more for your home than you may have thought but you’ll also pay more for that new home and will have to deal with multiple bids. Again, get prepared. You may have to sell your home first and make a double move until your new home is ready or until you can find one that matches your needs.
The best scenario if for those moving to either a location that is not booming or leaving the housing market all together. Maybe you’re retiring and renting or moving to more affordable cities with a balanced or even buyer’s market. Under these circumstances you’ll reap the maximum benefit of this hot seller’s market.
What ever your circumstances are, a real estate professional can guide you though all the twists and turns in this crazy market. Write of call us today. Helping you is what we do!
Once again sales at the Ottawa Real Estate Board have exceeded last years sales and have shown significant increases in value, especially in the condo market.
A shortage of available condos have driven the market to new values helping what has traditionally been a week market in Ottawa. Lots of bidding wars, lots of buyers but a shortage of available units is the formula that has created this increase in sales and value.
The freehold market has also seen increases in the number of units sold and the values too. This market has become a little more balanced but remains a strong seller’s market.
What do you do if you’re in a seller’s market?
Well, that all depends on which end of the transaction you’re on. If you’re buying it is more important than ever to do your homework! Working with a professional real estate agent with lots of experience is your first step. A good sales rep should be able to guide you through the steps you’ll need to be prepared.
- A solid mortgage commitment from a lender. This will make sure you’re ready at a moments notice to put an offer in on that hot property. Get something in writing so you can prove, beyond doubt, that you are qualified.
- Have a building inspector on speed dial. Your sales rep should be able to provide referrals to several inspectors. Make your choice early in the process.
- Get yourself a lawyer who works with real estate transactions. You’ll need one for any transactions in Ontario.
- Be prepared to move fast in today’s market. Make sure you are available to be in constant contact with your agent. Cell phones, email and texting are all important tools when the pressure is on. Don’t head out on an African Safari in the middle of an offer to buy a home.
- Finally, be ready to break the rules. Putting an offer in without what has always been considered common and practical conditions such as financing and inspection may not get you the home you want. That’s why we have strongly recommended making sure your financing is in place and accurate. You may want to also consider, if time allows, to do a pre-offer building inspection. Yes, if you don’t get the home you will loose the cost of the inspection which today ranges from $500.00 to $800.00 but it may give you peace of mind.
These are just a few of the things to think about when you are getting ready to buy.
Selling in a Seller’s market?
- Don’t think that any home in any condition will sell. Prepare your home properly as if you were competing with many other homes.
- An experienced REALTOR® will help you read the market, set the right price and guide you through some of the strategy you can use in a seller’s market.
- Delaying offers until a specific date is a strategy that has been very effective in building interest in a home and creating multiple offers. BUT if must be done at the right time in the right market. As markets cool, this strategy can backfire and chase potential offers away.
- Know what your plans are for the future. Buying another home? Moving to a rental or to retirement living? You may now become a buyer so you’ll need a plan on where you are going.
There is a lot more to know when selling even in a hot market. If you’re thinking of buyer, selling or both, fell free to write or call and we’ll be happy to work with you to get to your end goals.
So far this has been an incredible year and the market in the Ottawa area just keeps on going. Even as the weather cools the real estate market continues to be hot, hot, hot!
Condos have been on fire for months now and buyers have got to move fast! For sale one day and sold within days. Town homes are another hot item. We don’t see too many good townhomes on the market for more than a few days before they are scooped up and are also selling considerably above asking price. Five, six, seven or more offers on a home is not unusually theses day.
Buyers are to say the least getting a bit frustrated with the process. Putting in offer after offer and not getting the home you want can really get under the skin of a buyer causing them to loose hope and sometimes their temper.
If you’re a buyer out their in this situation try to push through these disappointments. Many have just given up but if you need or want a home you have to be in the market to get a chance.
So, what do you do to give yourself the best chance? Here are some tips.
- GET PRE APPROVED FOR A MORTGAGE THROUGH A MORTGAGE BROKER OR BANK. Why am I shouting this? Because in a competitive market like it is now, you may loose to other offers that do not have a financing condition. So if you’ve done you homework and are pre approved you can try to offer on a home without a financing condition.
- Make sure you have your pre approval in writing. Savvy listing agents and their sellers will want to see proof that you can afford the home without having to put a financing condition in the offer. They will not just “take your word for it.” Look, they don’t know you. The seller has no idea if your honest or financially capable. Its not personal but when they have 4,5, 6 or more offers sitting in front of them, they want to make the right decision and if you can prove that you have your financing ready to go, that’s a big benefit to you.
- Consider a pre offer building inspection. Many sellers are not accepting offers for a few days after their home goes on the market. This has some benefit for you. It gives you a chance to arrange a building inspection before offering. This way you’ll know if there are any serious or just cosmetic issues with the home and judge if you; A) even want the home or B) can adjust your offer based on the work needed.
- Most importantly you need information. Only a real estate agent who has their finger on the pulse of the market can help you though this tricky market. So get yourself a seasoned professional. Ask friends, neighbours and relatives if they have used a real estate agent and whether or not they were happy with what that agent did.
Now you’re ready! You’re pre qualified, you are ready for a pre offer inspection. You can potentially make an offer without those two very important conditions and you have an agent helping you through the twists, turns, timing and pitfalls of a hot real estate market.
If you are interested in talking to us, please don’t hesitate to write, text or call. We have over 30 years each in the real estate industry and have seen hot markets, cold markets and level markets. We have our fingers on the pulse of Ottawa.
homesbyhartman@realtyagent.com. Call or text to 613-795-7982.
Viewing new homes on the market, especially in the hot market we are seeing today, can be a very exciting. fast, and bewildering. You see a home and you fall in love with some of its main features. Your excitement level is high and before you know it your in the middle of making an offer! The pitfall to all this speed and excitement is that if you haven’t taken the time to consider all the details, you may find the upon a closer look, the home does not meet all your needs. This can have disastrous consequences!
In today’s fast paced market, you may have to act quickly when you find a property that meets your needs. Just need to make sure that the home really the right one for you and that you’re not being completely influenced by first impressions.
When you’re viewing a potential new home, or checking out a property during a public open house, yop should look for things beyond the paint and decor.
Here are some tips on what to look for:
- Will the property require a lot of immediate repairs, upgrades or renovations?
- Is it in an area that supports your family’s needs and activities. (Parks, schools, public transport, access to roads and highways, community facilities such as sports facilities, hockey rinks and swimming pools and shopping?)
- Is the property big enough?(Play structures, future pool)
- Is the driveway and garage space suitable for your needs?
- Will your furniture fit the space of each room or will you have to look at changing pieces?
- Are there enough bedrooms, bathrooms, closets and storage space? (Think about your current AND future needs.)
Avoid focusing in on only the major features of a home, such as the large kitchen or large living room.. Get down to the smaller details. This is a major purchase and you want to get it right!
Ottawa is having one of the hottest real estate markets we can remember and we’ve been selling real estate for over 30 years! Everyone wants to know what’s causing this, how can I take advantage and when will it end!
None of the answers to that are easy or very predictable. A new government in Ontario, Alberta provincial election and a federal election are just around the corner. Plus the ongoing tug of war over trade with the U.S. can individually and in combination make significant changes to a real estate market.
But Ottawa is somewhat insulated. There are two major economic forces here. Public service and high tech. For the foreseeable future (unless a new federal government launches major cuts) Ottawa will remain very stable and this is part of the reason Ottawa’s market has always been a good. Almost no declines in value and steady although too slow for some, growth. But with prices in other major cities out of sight high, (Toronto and Vancouver just to name two) Ottawa has become very attractive to those who can be mobile either due to retirement or job opportunity. Won’t you rather be in a city where $500,000 – $600,000 could get you a nice single family home in a good neighbourhood or in a city where the same dollars gets you a rundown fixer upper in a not so great areas.
Sure, Toronto has it all, Broadway theaters, concerts from all the big names in music, Film festivals, aquariums and more. But that doesn’t address the day to day living that an affordable city and very well serviced city like Ottawa has to offer.
On top of an influx of movement to Ottawa there is a housing shortage here. New home builders can’t keep up. I the “good old days” you could walk into a builder an have a home built and ready to move into in 90-120 days. Now you’re looking as 10-12 months.
With a hot market some potential sellers are holding back as they are scared that they will sell their homes and have no place affordable to go. So it goes round and round and round. Not enough homes to buy? Let’s stay where we are. Therefore that house is not for sale and buyers can’t find enough homes.
In the past few moths we have sold seven of our listings within a week and that counts days that we did not accept offers. In fact, all of them sold on the first day offers would be looked at. And all of them sold above asking prices. Some only a few thousand dollars and others as much as $30,000.00.
So, the good: If you’re selling, values are high, homes are selling quickly and for top dollar. All that being said, we are still finding homes that are not in good condition or poorly marketed, not selling at all.
The Bad: Exactly the opposite of the above for buyers. To get a chance at a good home you MUST get your pre-approval at a lender ASAP. Be prepared to either spend $500-$600 for a pre-offer inspection (if you even get a chance to do that) or risk going in with no inspection condition.
The Ugly: When a market is unbalanced in favour of either the seller or the buyer, there are always hurt feelings, finger pointing, loss of funds and disappointment on one side or the other. Right now it’s a seller’s market so we are seeing many buyers and their agents upset and angry. “Why didn’t we get that house? We offered more money but the other buyer got it. How come we can’t know what the other buyer is offering? We could have then beat it!”
These are the realities of real estate in Ottawa today. What you need is a representative who can guide you though this. Is their a representative out there that can guarantee to get you the home you want? NO! There are too many factors and people involved to make that kind of claim. What we can promise it that we’ll give you the straight facts. No fantastic promises. Just the facts and how to best navigate the market!
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