When you’re not immersed in it day after day, Ottawa real estate is not likely something you find yourself thinking much about. If you’re not buying, selling, or investing, why would you want to focus on what is happening in the housing market?

The truth is what happens in real estate can trickle down to other aspects of life, which becomes even more apparent when a change is on your radar. While it’s best to leave the intricate details to an experienced local real estate agent, having a handle on current conditions is always helpful before making your move.

In this post, we’ll show you some of the scenarios you’re most likely to encounter so that you can plan for success no matter what.

A Glimpse Into Ottawa’s History

To better understand the new reality of Ottawa real estate and where we might be headed, it pays to look at the past. For example, did you know that the average cost of an Ottawa house was just $340,021 in 2013, according to the Ottawa Real Estate Board? 

By the end of 2023, that same house had grown in value to an average of $633,138. In just 10 years, housing values have almost doubled. In fact, there has never been a time when Ottawa real estate has decreased in value over the long term. There have been a few hiccups here and there where prices decreased temporarily, but the trend has always been up.

Knowing that can fuel your confidence if you are thinking about taking the plunge and buying your first house or adding to your portfolio. The longer you are in the market, the more investing in a home will pay off. 

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What makes Ottawa such a vibrant and dynamic place to live? See for yourself in the posts below:

• Ottawa: More Than Meets the Eye
• Is Ottawa Boring? No, and Here’s Why!
• Rural Ottawa or City Living: Which is Right for You?

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Local Markets Can Change

As time goes by, the need for housing keeps growing. Increased immigration and more people relocating to Ottawa only intensify the demand that the city is scrambling to keep up with.

This unprecedented demand and low supply partly explains why houses have become so expensive in today’s market. 

Even so, conditions can fluctuate depending on other factors. For example, high interest rates and economic uncertainty can dampen sales even though many people would like to purchase a home. 

And even when the market is slow, there will always be some people who are ready to make a change. The key is to understand what is happening in your neighbourhood and to position yourself for success in any situation. Here are a few scenarios to be aware of when a change is on the horizon:

• A Seller’s Market: There is a buying frenzy happening, and not enough houses for sale. Chances are, your home will sell quickly. Then, you’ll need to prepare yourself to buy a new home while potentially facing steep competition.
• A Buyer’s Market: Buyers are hesitant to act, which means homes are sitting on the market for longer. As a seller, you may have to reset your expectations and work a little harder to negotiate with those who are in the market. But the good news is that once your house sells, you are in an advantageous position to find your new home.
• A Balanced Market: The number of buyers roughly equals the number of sellers. You may have to negotiate a little on both sides of the transaction. Otherwise, you likely won’t face too much difficulty when buying or selling.

Why Do Market Changes Matter?

When housing sales are on the slower side, other industries can also see the impact. People become less optimistic and more cautious about making significant decisions. They don’t just take longer to buy or sell real estate, but will also cut their discretionary spending in other areas. 

On the other hand, when the real estate market is on fire, it’s usually an indication of high consumer confidence and a thriving economy overall. Think of it like a party. When there are a lot of people having a great time, even more people want to join in the fun. High sales activity in the real estate market can also mean local businesses thrive as new homeowners get out to explore the neighbourhood.

Searching for Hidden Opportunities 

It can feel discouraging when buying or selling in a market that isn’t entirely in your favour. However, the new reality is that real estate is fast-paced and nuanced, which often means there are plenty of opportunities beyond what you see during an online search.

When buying, browsing the MLS® is an excellent first step. But the operative words there are “first step.” There could be unadvertised or back-to-market listings that you aren’t seeing. A local real estate agent can often connect you with local homeowners who wish to be anonymous. The perfect home could be a few phone calls or emails away, but you will never know unless you apply some creativity to your approach.

Selling your home in a market where buyers are on the fence can be even more frustrating. It seems like you have a parade of interested parties coming through your door but no serious offers. In the meantime, you must keep your home looking pristine and show-worthy while keeping up with your daily responsibilities and routine. 

If this happens, the key is to focus on targeting the right type of buyer. This means ensuring your price is competitive and that your listing is visible wherever the most likely buyer is searching. A successful sale often requires that you set reasonable expectations. 

However, it is encouraging to know that all it takes is one buyer with the ability and desire to own a home just like yours. As more people set their sights on Ottawa, a successful transition could be just around the corner.

Do you have questions about buying or selling a home in Ottawa today? We are happy to help with whatever you need. Contact us at mail@chellteam.com or call 613.829.7484 to take the first step.