PRICES UP, SALES DOWN!
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!
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