When is the best time to buy after a whirlwind of a Real Estate Market?
Choosing the right time to buy in Ottawa can be tricky, especially after the ups and downs we have seen as of late. Ottawa has always been a great place to live, considering the stable job market, below average home prices, safety and so much more!
After a very strong market during the pandemic, The Ottawa real estate market started to slow with the increase in interests rates and elevated home prices. Why did the Bank of Canada start raising the interest rates? In short it was to decrease the inflation rate.
That being said in Late 2023 we started to see home prices decline as per CTV and OREB “Ottawa’s real estate market had its slowest sales year in 13 years in 2023, as high interest rates and affordability affected the market.
The Ottawa Real Estate Board says 11,978 homes and condominiums were sold in Ottawa in 2023, down 11 per cent from 2022. The average price of homes sold in Ottawa in 2023 was $667,794, down 5.5 per cent from 2022.
It’s the fewest homes sold in Ottawa since 2010. According to the city of Ottawa’s annual development report, there were 11,336 homes sold in Ottawa in 2010.
The real estate board said throughout 2023 that rising interest rates and affordability were factors in the real estate market.
All this said as the Bank of Canada starts to lower the rates, we are starting to see the market become more active again.
The Ottawa Real Estate Board said The average price of homes sold in July 2024 was $679,610 decreasing 2.1% from July 2023. The more comprehensive year-to-date average price was $681,082, increasing by 1.0% from July 2023. The dollar volume of all home sales in July 2024 was $843.3 million, up 11.3% from July 2023.
We are also seeing new programs for first time buyers with longer amortization rates, lower interest rates and lower home prices compared to 2022.
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Those who will wait to enter the market, might get a surprise as I believe that if interest rates continue to drop, we will start to see more buyers in the market which in turn could create more bidding wars. Again this is just my opinion. Typically most buyers and seller wait for spring as there are more homes on the market and the spring temperatures get more people outdoors.
So if your thinking of buying or selling, instead of waiting till the spring, I believe that if you are buying you should start the process sooner then later!
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