OTTAWA STATS IN THE MIDST OF PANDEMIC
Here we are. The beginning of June and deep into the COVID-19 Pandemic. The Ontario government has announced that restrictions as they are now will stay in place until at least the end of June.
For many people this is bad news. Workers in all industries and professions want to get back to work or as close to normal as possible. For real estate agents the statistics are not good. Residential sales are down 43% and condo sales are down 49% (May 2019 compared to May 2020). These numbers are showing improvement as the combined sales (condo and residential) were 55% lower in April compared to a decline of 49% in May.
There is a silver lining. Prices have increase from 2019. Condo sale prices were up by 15.5% and residential class properties were up 11.2% in May alone. Year to date, prices have increased 13.8% for condos and 17.8% for residential properties. The shortage of new listings and delays in building new homes have cause prices to rise. 2019’s market was supper competitive as almost every home saw multiple competing offers. 2020 has not been as competitive but we are still seeing many, many competing offers. We have heard of up to 20 offers on one home even in this market.
Our summary of the market is this. If you are buying a home, make sure all your ducks are in a row. Get a reputable experienced agent, have your lender pre-qualify you in advance. Be open and honest with both your agent and lender. Make sure they have all the facts so that there will be no surprises when it comes time to put an offer in with no financing condition. Take a good look at the home you are thinking of buying. There’s a reasonable chance you may have to skip a building inspection if you want a shot at that home particularly if you are competing with other buyers. A seller will take a lower offer if there are no conditions over a higher offer with conditions. Be confident that you have a little extra money put aside in case issues with the home do come up after you move in.
If your selling! Well, for the most part, you are in the driver’s seat. BUT the basics still pertain. Keep your home exceptionally clean especially in the COVID-19 era. Check and make sure all your maintenance items are up to date. If there is an issue with your home (furnace or central air not working, sink leaking, roof leaking) and you are aware of these or any defects, you are required to disclose these facts. If it can be proved that you knew or should have known about a defect, you could be held responsible for repairs even after transfer of ownership. Make sure you are readily available to your agent. Make sure you have good access to email as most transactions today are handled electronically due to COVID-19. If your home is for sale do not go camping or to a cottage with no or very poor internet or data connection. Offers and negotiations will be happening fast and furiously.
Need to talk to a pro? Call or write us and we’ll be happy to discuss today’s real estate reality. firstname.lastname@example.org or 613-825-9710 (home office)
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