By Lynda Cox
Since the start of the Pandemic the Ottawa real-estate market has experienced an increase in home prices and a decrease in the length of time a house takes to sell, or days on market. Both of these factors are good indicators that the housing market is stable, at least for the time being. Currently the inventory is lower than ever, causing pent-up demand and lots of bidding wars.
In fact, within the last two weeks, the majority of properties in the Ottawa region are selling for at least their asking price, with multiple-offer scenarios a common occurrence causing the buyers to pay more. This is happening from Orleans to Stittsville and everywhere in between. This frenzy is prompting buyers to delete their financing and building- inspection conditions and go in with a firm offer. It’s a risky business but very common at the moment. Buyers are encouraged to have all their mortgage approvals and even building inspections completed before they submit their offer. It is often the only way to have a chance of securing the property in this fast seller’s market.
The Canada Mortgage and Housing Corp. (CMHC) is predicting an up to 18% drop in housing prices once the pandemic panic comes to a close. Once the mortgage deferrals come to an end, some of those home-owners might be forced to sell if their financial position has changed due to COVID layoffs. Also, home owners that intended to list their properties this spring and have been waiting until the virus was under control will be ready to put their houses up for sale. Listing inventory could spike. There might be lots to choose from. This could quickly turn into a buyer’s market with sellers adjusting their prices just to be more competitive. Even now we are seeing a daily jump in the number of listings.
So for now, it is wait and see. There are so many unknowns. Will CMHC be right? Only time will tell.
In my last article I suggested you hold off selling because the market had ground to a halt due to COVID but now my advice would be to get your house on the market as soon as possible so as to take advantage of this strong seller’s market. Who knows how long it will last? If you are still not in a panic to sell this year you can wait it out. If the prices drop it shouldn’t be for long. Ottawa always bounces back.
Lowertown Real Estate Update from May 1 to June 11
Residential Condominium
Active Listings 6 Active Listings 34
Conditionally Sold 1 Cond. Sold 2
SOLD 6 (3 sold over list by $25K to $55K) SOLD 18 (3 over list by $8K to $30K)
Contributed by Lynda Cox
Lynda and her son Jim form the COX HOME TEAM, and are sales representatives with Royal Lepage Performance Realty. You can reach Lynda at lynda@coxhometeam.ca