Did the bubble just burst? Ryan Brown with The Tulip Team at RE/MAX explains what's going on in the Ottawa real estate market this summer.
Let's chat about what's happening in the market right now. As you may have seen in the news, the market has done a 180 and people are just a little bit concerned about it.
Houses are taking longer to sell because there aren't 10 buyers breaking down the door. We're seeing more price decreases than we've seen in years and it actually matters if a home has deficiencies or locational disadvantages.
It's almost like things are operating like they were pre-pandemic.
Looking at the charts, for new listings, we're pretty much par for the course. Historically, there are fewer new listings in the summer.
For sold properties per week you can seethat , because of rising interest rates, less people are buying houses as it has rapidly become more expensive to borrow funds. The direct result is going to be a slight price correction from the peak there.
There are not many buyers that want to pay February prices with a July interest rate and until the inventory gets absorbed again, they don't have to.
That being said we're still positive year over year in terms of the average sale price. However, that gap is narrowing and we should definitely not expect to see 20+ percentage increases again anytime soon.
If you're going to buy a home in the next few months get your pre-approval locked in before the next rate hike.
If you're going to sell your home in the next few months, make sure you analyze your macro market with your REALTOR® to see where things are headed. And unless you have an 11/10 house, it might not be a great idea to rely on multiple bidders to reach your expected sale price.
I hope that sheds a little light on what's happening in the market. If you have questions about your personal real estate needs, feel free to reach out anytime.
Ryan Brown, REALTOR®
RE/MAX Hallmark Realty Group, Independently owned and operated Brokerage
Ryan: 613-301-7115 Ofice: 613-236-5959
No comments:
Post a Comment