This a question we have been fielding from many of our clients and friends. In a time that is in such turmoil not only at home but around the world it is a very difficult question to answer but we’ll give it our best try.
It appears that the Bank of Canada as well as the Federal Reserve in the U.S. are very likely to lower interest rates again in early September and that may not be the last of it. We are confident that this will stir the market and get some buyers off the fence and make the commitment to buy a home.
Then there are the sellers. Prices and sales are definitely down compared to the last couple of years. Those that have owned a home for a while (5 + years) are still seeing a substantial increase in value over what they paid back then. Those who have bought less than 5 yers ago are either seeing a modest increase in values or a break even point. So, depending on the situation, we may see more homes on the market.
That being said, the homes on the market now are for the most part, not moving quickly. Patients are required from sellers in today’s market. Good marketing strategies are required and adapting to the pulse of the market is critical. We have seen homes come on the market and by the look and description should sell relatively quickly but then they do not. Why? Generally pricing. Starting too high because the last few homes sold in a brisk seller’s market is a common mistake sellers and some agents make. Then not adjusting price to meet the market is a very critical mistake. We have seen homes on the market for over 120 days and not change the asking price. This is either a seller who doesn’t really care to sell and just wants to see if any fish will bite or poor advise from those that the seller relies on to guide them.
So, buying and selling you must be knowledgeable, flexible and attentive to what is going on around the market today. After over 30 years of selling real estate, we know and watch the market everyday.
As we are sure you are aware, the real estate market in Ottawa and throughout the country is in a bit of turmoil. Prices have dropped, properties are on the market for longer than even during what was once considered normal times.
So what is a seller to do the get the most value out of their home in today’s market? Over the past few years almost anything and everything was selling without an issue. No building inspections. No financing condition. No asking the seller to do this or that or throw in some furniture or a lawnmower or snow blower. But today, you MUST GET BACK TO BASICS! Prepare your home to the best you can do and afford. Paint, clean and repair, repair, repair! Make sure your home will pass not only the Buyer’s inspection but a professional building inspection. If you don’t think it will, take care of the issues if you can. Doing all this may not necessarily make your listing price higher but it will make buyers feel good about your home and about making an offer. Offers tend to be higher when the buyer sees that the home is clean and well maintained. THAT can bring you more dollars in your pocket.
If your trading real estate (buying up to a larger or superior home downsizing) it is a bit of a wash. What you are buyer usually rises and falls in step with what you’re selling. Buying up in a down market is usually a benefit to a buyer as in harder times, affordable homes seller better while larger more expensive homes can stay on the market longer reducing their value.
If you are getting out of home ownership (renting) then we recommend the Spring market. This usually gives the best value. We start the Spring market in March and it continues to grow and increase in value as time moves toward Summer. However, the right time to sell is up to you and your needs and circumstances. We sell home 12 months of the year.
We have stuck to the basic of good service, responding to our clients needs and practicing solid real estate techniques and marketing for over 30 years. We’ve lasted in this business for only one reason: We are very good at what we do.
So feel free to call or write. homesbyhartman@realtyagent.com 613-825-9710
Well… it’s been a great run for sellers. Over two years of unbelievable value increases, properties sold in a few days with no conditions and many multiple offers! Low mortgage rates, a lack of inventory plus a pandemic that gave buyers the need for more and better housing all combined to drive the market to new heights.
It was great for agents like us too, IF you were the listing agent. Sales were happening fast. Put a home on the market in the morning and by the afternoon ten showings were booked for that or the next day. It became so busy that many of us had to hold off offers in order to deal with all the activity and to create that “buzz”. Then is was just a matter of waiting for the offers and helping our sellers through the agreements and pick the best one for them.
It was not so much fun for our buyers. Viewing homes on short notice because if they didn’t, it would gone before they would even got a look. Making offers on multiple homes only to loose to other offers time and time again. And of course, offering well above the asking price just to have a shot at getting a home. It was frustrating and disheartening for all concerned.
How things have changed in a relatively short period of time! With higher interest rates, high cost of living and the pandemic mostly controlled, the real estate market has made a huge turn. Although not a total buyer’s market (it’s more balanced now), the days of “must put my offer in now” and offers well over asking price are for the most part gone. There is still a shortage of some types and styles of properties and we do see the occasional sale above asking price but these have become rare.
What is happening in the market today is that the value of a home has dropped considerably from what it was just a few months ago and the buyers are well aware of this. Now we are back to the way real estate was for many, many years. Set a realistic asking price, wait until the right buyer comes along and be prepared to negotiate. And, don’t expect firm offers. Financing and inspection conditions are the most common and we are seeing most offers with these and other conditions on a regular basis.
In summary, we are back to a more “normal” market. Sellers must go back to preparing their home properly for sale. Clean, repair and stage. Price appropriately and don’t panic if you have not sold in ten days. Thirty to sixty days was not unusual just a few short years ago. Stay informed on the market and adjust your expectations as it changes. We or your agent should be updating you on a regular basis.
For buyers, don’t get to cocky! Yes, the pendulum is swinging back the other way but there is still a shortage of good inventory. If you find a home that meets your needs, make the offer. You may not have to bid against other buyers and you may feel confident in putting in a conditional offer but don’t sit around a wait too long.
What our help with your real estate needs? email us at homesbyhartman@realtyagent.com
The real estate market in Ottawa and many other parts of the country, are in flux, changing, adapting and somewhat unpredictable. Average sale prices are high, number of homes sold are dropping and there is no quick fix in sight for the most important factor in these numbers; SUPPLY AND DEMAND!
Pure and simple. There are many more buyers than there are homes. This imbalance has been going on for about two years and for now is continuing. The only reason the number of homes sold and condos have dropped (down 12% for freehold and 10% for condos) is that there is not the supply.
This has all contributed to the rise in prices in March 2022 alone. 12.5% for freehold and 9.6% for condos as compared to prices in March of 2021. New rules regarding investment buying has so far done little to help but the rise in interest rates seems to be having an affect. We are seeing less offers on properties. Yes, there are some homes still attracting 10 or 15 offers but many more are now either just one offer or just two or three. Buyers are being more selective, taking more time and being more selective.
What does this mean for you? If you are a seller, it’s back to the days of making sure your home is ready to show. Think of it as if YOU were buying a used car. Would you buy the one that has just been waxed, had the interior totally cleaned and the engine tuned up or the one with mud splatter on the exterior, the brakes worn out and pet hair all over the seats? Well a house is a much larger investment so cleaning, fixing and shining your home is extremely important. We might have been able to get away with leaving a few things a little rough but not any more.
If your buying there is a little less pressure to jump on the first home that hits the market. Yes, the inventory is still too low but the number of qualified buyers has been reduced so there is a little less competition out there. But still be well prepared. Make sure to get you financial picture and mortgage qualifications all set up before going to see any homes. Know what type of closing date you want and need. Are you renting? How much notice do you have to give your landlord? What funds to you need for lawyer, mover, taxes and other expences over and above the purchase price?
In summary, we should follow that old Boy Scouts motto, Always be prepared!
While there are plenty of great resources available to help you narrow down what you’re looking for, and research the region or neighbourhood that may best suit your lifestyle, consider these benefits to hiring a real estate professional when buying your next home.
A REALTOR®1 will not only take the time to help you find the right property, but also assist you through the buying and closing process. By getting to know you they can make suggestions of similar properties in similar neighbourhoods that may be off your radar. They have their fingers on the pulse of communities across the region they cover. They will advise you through the offer process and once a bid is won, they can recommend trusted professionals to help you complete the transition.
Here are some benefits to consider:
ACCESS TO A LARGE NETWORK: A licensed real estate agent will have access to more available properties than the general public. Through their professional databases and relationships with other agents, a realtor knows what properties are coming on the market before they are posted, and may have other clients, or colleagues with clients, who are preparing to sell a home that fits your criteria. Some homes are sold prior to being listed and others are only publicly listed for a very short time. You could miss out on your perfect home.
NEGOTIATING: A realtor is a professional negotiator, and it is part of their job to get you the best possible deal on a property. They have insights into the local market, and with access to important data, they have a deep understanding of property values in a particular area at a given point in time.
NAVIGATING THE TRANSACTION: A real estate agent is an expert in their field, and having an experienced professional on your side will take the stress out of the critical paperwork that is necessary when purchasing a home. A realtor will guide you through one of the most significant and important transactions of your life.
ACCESS TO OTHER PROFESSIONALS: It’s always helpful to have referrals from friends and family when hiring a professional. Just as you may be referred to an agent, your agent can refer others to you. Real estate professionals have access to a large network of home inspectors, appraisers, contractors, financial advisors and mortgage brokers, and movers, to name a few. When you hire experienced experts, you get what you want the first time while saving time and money.
Want to know more about us and what we can do for you? You can email us at homesbyhartman@realtyagent.com and search through this website.
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