06 Aug Ottawa Housing Market Trends
Ottawa Housing Market Trends: For Buyers and Sellers
The Ottawa real estate market is in a constant state of change and is always adapting to new market factors. For buyers and sellers, this can make navigating the housing market more challenging than usual. This blog post will address some of the unique challenges in the Ottawa housing market, and how you can overcome them. Let’s dive in!
Changes in the Ottawa Real Estate Market
By almost every metric, the Ottawa real estate market is on a hot streak. If you’re in the market to buy, or if you’re a homeowner looking to sell, you’re in luck. There are a few reasons why the Ottawa housing market is excelling.
The First Time Buyer Tax Credit is Running Out – Time is running out for First Time Buyers to claim the $5,000 First Time Buyer Tax Credit. In Ottawa, this tax credit has led to a surge of First Time Buyer activity, pushing prices up and inventory down. It’s likely that many FHBs will want to get into the market before the end of 2022, so it may be a good time to take action.
Low Interest Rates – Interest rates have been at record lows for almost a decade, making home ownership much more affordable. This has led to a rush of first time buyers into the market, as well as people buying their next home, rather than staying put. This has pushed the Ottawa housing market beyond the point of balanced demand and supply, and into an environment of high demand and low supply.
Immigration and New Job Creation – Canada is seeing record numbers of new immigrants annually. In fact, in 2018, Ottawa saw a record number of newcomers, with nearly 45,000 new residents settling in the capital city. As newcomers are often looking for housing, this has led to higher demand in the Ottawa real estate market. New job creation, particularly in the tech sector, has also contributed to higher demand for housing.
High Demand and Low Supply
The Ottawa real estate market is showing signs of overheating. This is evidenced by a high demand for homes, and low supply of homes on the market. This is a trend that will likely continue throughout the rest of 2022, and into 2023. As the First Time Buyer Tax Credit is may eventually end, it’s likely that demand for housing will drop off, and supply will increase. It’s a good idea to keep an eye on the market, and be prepared to take action based on market conditions.
Finding Your Perfect Match
Finding a home that meets your needs is a challenge in any market. However, in a competitive market like Ottawa, it can be much more difficult. For example, let’s say you’re looking to buy a house in Ottawa. The average price for a house in Ottawa is currently just over $420,000. If you’re a First Time Buyer, your budget is likely less than this.
This means you’ll be looking at less expensive neighbourhoods, where there is less demand. This can make it difficult to find a home that meets your needs. It’s a good idea to be flexible when looking for a home. This will help you find a home that meets your needs, while also being in a neighbourhood that has less demand.
The Competition Is Heating Up
When you’re buying a home, or selling a home, it’s always important to have a competitive edge. That’s even more true in a high demand market like Ottawa. For example, if you’re buying a home in Ottawa, you’ll want to make sure you have a strong offer. The higher your offer, the more likely it is to be accepted. You’ll also want to make sure that your financing is in order. Some buyers try to secure financing after they’ve entered into a purchase contract, which leads to a drawn out and stressful process. Let Capital Mortgages help you with a pre-approved mortgage before you start your Ottawa search.
We’ve explored what is happening in the Ottawa real estate market, how these changes impact buyers and sellers, and what you can do to navigate these changes successfully. There are a few key points to keep in mind throughout this process. First, it’s important to understand the current state of the market. This will help you adapt your strategy and navigate the market successfully. Next, make sure to have a realistic view of the market. You’ll want to know what you can afford, and what properties are currently selling for. Last but not least, don’t get discouraged. The Ottawa real estate market can be challenging, but with the right strategy, it can be fun and rewarding.
We here at Capital Mortgages in Ottawa look forward to assisting you with all your Ottawa mortgage refinancing needs. Contact us today by calling us at: 613-228-3888 or email us direct at: firstname.lastname@example.org
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