By Nancy O’Dea
In the world of real estate we have had quite an interesting ride so far in 2023 following the tremendous volume and erratic prices through a global health crisis. None of us could have predicted the extremes of the past three years, nor that the 2023 spring market, which otherwise arrives with a burst of energy every March, would have been as tempered as it was. That was in reaction to rising interest rates I suspect. However, by May the market seemed to adjust and folks decided to just get on with it.
The times are still somewhat off-kilter from what are typical patterns, and may continue to be so for a while as we begin to stabilize the economy and struggle with inflation.
Low inventory levels in Ottawa have prevailed so far this year, with demand continuing despite efforts to temper the market with higher interest rates. This demand continues to put an upward pressure on prices, reinforcing the notion of supply and demand.
I was surprised this summer that buyers are still in competition, which keeps prices rising, although not as frenetically as during the pandemic. This season it seemed that only when properties were reasonably priced did they sell quickly, often for more than listed. The market appears to be more price‑sensitive these days. If you are considering selling, especially as we move into fall, it is important that your home be priced well.
Although inventory levels are beginning to climb there is still less than a three-month supply of inventory on the market at present. I believe there is a newfound pulse with interest in real estate. As we look at the August sales, we approach the last quarter going into what many feel is the last week of the summer.
It is now that we begin to see folks turn their focus from vacationing to real estate. Interest rates are predicted to hold for a while, and the pundits — along with economists and investment bankers — suggest that real estate will see some gains this fall.
Rising inventory levels is a good circumstance for everyone as it purports to bring the market into balance, making it a fair opportunity for both buyers and sellers.
So, the fall is a good time to be in the real estate market.
This will be my last “echo” in the Echo as I move out of the neighbourhood and settle into another enjoyable experience in a different part of the capital. What do they say? Variety is the spice of life! I have enjoyed what was meant to be a short stay (now 14 years) in Lowertown and look forward to the next stay as I continue my real-estate journey around town.
Please, feel free to reach out if you have any questions in the future. I am always available to talk about real estate. Until then happy house hunting!
Nancy O’Dea is at Engel & Völkers Ottawa Central Brokerage.