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Ottawa’s shifting real estate market 2018

I can vividly remember the day, years ago, when I found out I was going to be a mother. Being overwhelmed with first joy, your mind then starts racing, taking into consideration each and every minute detail surrounding raising a baby – you fast forward to seeing your new family addition growing, playing in a yard, having a play room, and then it occurs to you…. My home isn’t big enough to have a little one running around here, let alone to house all of the things that come with a baby – crib, stroller, toys, clothes. Your joy and excitement surrounding your new bundle of joy, is quickly overshadowed by the reality that you need a bigger home, and quickly.  

Families need a place to eat, sleep, play, and grow into. Today, as a 11 year veteran of the real estate industry, and busy mother of 2, I want to discuss what’s happening in our market. There is a common misconception in our very conservative city that it is best to ‘wait for a better market’ to make a move – and as a professional, I don’t believe you are going to see that substantial change again for a very, very long time.  

You see, Ottawa experienced a very strong buyer’s market (which means a lot of homes on the market, and not a lot of buyers). Buyers have had their choice of many options with little competition, and prices stayed relatively low between 2012 and 2016. As we know however, the real estate market is cyclical and a shift is bound to come eventually. Our market shifted in 2017 and we are now in a seller’s market (not many homes for sale and a great number of buyers looking for homes). You can see the trend here from CREA, the Canadian Real Estate Association, which puts together the MLS® Home Price Index (HPI). HPI comprises a set of software tools configured to provide time-related indices on residential markets and is the best and purest way of determining price trends in the housing market. 1 

 real estate ottawa

You can clearly see the trend over the last year has been enormous growth. The average sales price in 2016 was $371,897 and rose to $392,474 by the end of 2017. That’s an increase of 5.5%. If you look at what that means for buyers that are selling a smaller condo or townhome, and trying to move up into a larger home, this makes the larger home much more expensive then any appreciation on a less expensive townhouse or condo. I believe we are going to continue to see housing prices increase for the next several years. With the cyclical nature of the real estate industry,  wouldn’t you want to take advantage of these rising prices in a larger home, that suites your needs for years to come, while also taking advantage of the lower mortgage rates we are experiencing at the moment, as those are also on the rise.  

If this information has sparked questions about the market, or if you would like any advice on your current real estate situation, Jenna & Co. is here to help. We offer a no obligation consultation in which we will discuss the value of your current home, your ideas on where you would like to move, put together a moving budget for you so you know if it’s affordable, and lastly, we will help you with a to do list of things you need to get done on your current home in order to sell. When it comes time to purchase or sell, our team of tough negotiators will work hard to ensure that you are receiving the best advice and paying the best price possible, even in a shifting market. 

Please give us a call today to arrange a time for your personalized consultation at 613.699.2079 x 1. Take advantage of the market today, and watch your investment grow!

 

Source: https://www.crea.ca/housing-market-stats/mls-home-price-index/

 

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