As prices have come down in recent months, it’s important to review how you can take advantage of the particular scenario that you’re in (whether it’s buying, selling or both). The general advice we give is to do the challenging part first. In the previous hot seller’s market that Ottawa was in, buying was generally the more challenging part of the process due to the competitive nature of the market. (It’s valuable to note that we’re still in a seller’s market – currently sitting at about 3.8 months of inventory. A balanced market is between 4 and 6 months of inventory and a buyer’s market is more than 6 months). Currently, in general, the more challenging part is selling your home. But, it’s important to note that the strategy will always differ depending on the needs of the client.
The important parts of selling your home include:
- Getting it listed for an accurate price (based on the current market conditions).
- Factor in the average time on market with a closing date in mind.
- Add that time to the offer that you make on another home (ask for a later closing date).
- Position the property with professional photography, staging and marketing.
- Think outside the box.
- Work with real estate professionals with a toolkit full of beneficial strategies that provide
realistic pricing expectations.
What we’re seeing right now is that houses that are priced properly are selling in a week or two. The houses that aren’t priced accurately are sitting on the market. It’s a balancing act. If your home sits too long buyers will come in and try to give you a low offer and in the end your home will ultimately sell for less.
Doing the challenging thing first may also be different based on what you’re looking to buy. If you are looking for something generic and run of the mill, like a townhouse in Barrhaven vs a very specific country property on an acreage or a lake. We don’t want to sell your house right away and have you end up homeless because you haven’t found the gem you are looking for.
Move up buyers can come ahead a lot this year – especially if you’re going from an entry level home or your first house into a second home. The timing is perfect right now for those looking to upgrade into a more expensive home. It is true the interest rates are higher but the gap is smaller between the two types of housing (starter home vs high end home). Individuals who are selling high priced homes and not buying anything else or downsizing to something less expensive are losing equity in this market. There were also many who bought at the height of the pandemic in “Zoom towns” further away from their employers. Many assumed they would work from home in perpetuity, but things changed. Many are ending up having to go back to the office leading to long undesirable commutes. We’re seeing these types of homes hit the market.
A similar phenomenon is also happening with cottages. Those who couldn’t travel felt driven to purchase cottages during the pandemic. Now that travel has opened up, this may lead to the market being flooded with cottages and rural properties which would lead to lower prices. “Zoom Towns” could be coming down in price too for that reason. Also, some larger homes that include home offices that aren’t needed now are coming back onto the market. This could create an opportunity to purchase something for a good price. Especially if you’re in the market for a passive income stream like an income property. Be sure to watch out for these trends!
For more valuable real estate related tips, you can check out the REAL Collective Podcast on iTunes, Spotify or YouTube.
