It’s no question that the real estate market in Ottawa for 2020 is very active
The 2020 spring market is just around the corner. Whether buying or selling, it’s no doubt that the Ottawa real estate market is absolutely hot!
In 2019, Ottawa saw an increase of 8.9% for residential-class properties and an increase of 9.3% for condominiums. This year, OREB (Ottawa Real Estate Board) is predicting more of the same, although January sales volume is off to a slower start because the shortage of inventory is impacting market momentum.
OREB reports that “high demand has shifted market values upwards in various neighbourhoods and prices are unlikely to go back down…”.
What does this mean for buyers?
For residential properties, homes in the range between $400,000-$549,000 represented the most common price point accounting for 40% of January’s transactions(OREB). The primary price point for condos was between $200,000-$349,000 accounting for 55% of sales in January (OREB). Homes listed at higher price points may be on the market for longer, but if you’re a buyer looking within a range higher than $549,000 – you may still be in for some competition simply due to lack of supply.
If you’re buying this year, expect some competition when looking at homes in those common price points, especially in Kanata, Nepean and Barrhaven. Despite the new construction in these neighbourhoods, demand is still outpacing supply largely due Ottawa’s continued economic prosperity, particularly in the high tech sector and federal government.
Additionally, “delay of offers” are increasingly common and most homes are being listed and sold more rapidly. Your best bet for success is to hire an experienced professional to help you navigate this challenging buying market, particularly when it comes to potential bidding wars in desirable neighbourhoods within common price ranges.
Don’t get discouraged – buying a home in today’s market is going to take some time. You can refer to this blog if you’re looking for more tips on how to navigate a difficult market and what a realtor can do for you.
What does this mean for sellers?
If it’s not already obvious in Ottawa – it’s a sellers market! The increasing home values and lack of inventory means that homes are selling well! The Ottawa market is seeing a common pattern of delays in offers for homes, particularly with homes listed in the common price points and sought after neighbourhoods.
While your home may or may not see a quick sale, it’s important not to overlook the value of listing with a skilled professional who is knowledgeable of your neighbourhood and who can evaluate, stage, photograph and market your home to it’s fullest potential. A professional can also negotiate on your behalf to ensure you’re getting the best return possible, plus, they can help you market and highlight the very best details about your home, attracting the right buyer. This applies even for properties that are likely to sell quickly – the details really add up!
If you’re planning to buy before selling your home, you may be in for a bit of a challenge due to lacking inventory. Your realtor can help you establish a realistic timeline that will work for both your buying and selling processes, as they’re likely going to move at very different paces. They’ll also help you negotiate closing dates as lining up closing dates in a competitive market can be tricky. Remember, if you’re buying a home in Ottawa, your search make take some extra time, so don’t be discouraged!
On top of navigating all the important details pertaining to your listing journey, your listing agent can also offer advice on upgrades or small changes that can increase the value of your home and interest by buyers. If you choose to list your home this year, prepare to accommodate lots of showings!
Are you ready to buy or sell in Ottawa and the surrounding area?
Don’t wait! There is no time like now to get started on your search and learn about the process before you get into it!
If you have questions about the process of buying or selling a home (or both!), we’d love to answer them. Get in touch to get the ball rolling!
*DISCLAIMER – All opinions are our own. Not intended to solicit. Information obtained from OREB and MLS*