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I'm Liza Wilson, trusted real estate advisor, and I specialize in helping families in the Ottawa area upsize their homes and their life.
October sales are down 41% from last time this year. It’s true but, be careful about buying into the doom and gloom messaging that is out there when it comes to the Ottawa real estate market.
In October, Ottawa real estate board members sold 987 properties. That number is down from the five-year average which is 1554 but not unexpected after we had these consecutive and significant interest rate hikes from the Bank of Canada. It's making it harder for first-time buyers to qualify and changing other people's purchasing power. For example, maybe they qualified for $750,000 before and now they're qualifying for $625,000. That's causing people to pump the brakes on buying. Buyers are taking more time in the market to watch and see what happens.
This market means more buyers have options to negotiate, include conditions in their offers and take thinking time when they do see a property they like. Multiple offers are still happening but, often you do not see homes getting high over asking selling prices like we did in the spring of this year.
Are multiple offers still happening? Yes. Why are multiple offers still happening? Inventory has increased throughout the year however, we are not at numbers yet that create a balanced market. It really depends on the property being sold. Is there any similar to it in the neighbourhood? Is it the best priced home in its area? Is it the best condition in comparison to homes around it? These factors will contribute to the interest level we see from buyers when a home goes to market. If it's the only one of its kind in that area and it's in great condition, it could yield multiple offers. It is important to note that multiple offers are still happening.
How many homes are selling over asking? Let me give you a quick example. In a 7 day period from the end of October to the beginning of November, the Ottawa board had 241 properties sold. Less than 1% of them have sold over asking. Some sold $100 over asking and the highest sold for $150,000 over asking price. It is a prime example that every house is different and several factors have to be considered to determine selling price.
What are the selling prices for condos and homes in Ottawa? In October, the average condominium sale price was $445 691 and that is an increase of 9% from last year. The average residential sale price was $677 873 that is a decrease of 5% from last year.
Buyer and Seller advice:
Buyers: Interest rates are up but prices are down. That means less down payment! Talk to your mortgage person and find out what does that mean for your monthly mortgage payments if you purchased now. It could be around the same mortgage payment you would have made if you had bought back in the spring at a higher price point but a lower interest rate. Do the numbers and find out.
Sellers: The average days on market right now is 29 days so, if you are thinking of selling soon, always take the time to prepare to make your home look its best. My top three pieces of advice for home prep: paint, declutter and clean!
If you have real estate questions, reach out! I love talking about the market and the opportunities available in this market.
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