We have seen a strong seller s market since January 1st of this year, low interest rates coupled with a lack of home inventory in Ottawa and the impending HST introduction has caused a sellers delight and a buyer’s nightmare. For 2 months homes have been priced high and bidding wars have pushed prices higher than anticipated and higher than the Ottawa market can sustain. Just recently home buyers have seen the increase in price as out of control and will likely put a slow end to this sellers market. With the temperature warming and the spring market upon us, sellers are flocking to the market hoping for the unrealistic returns of the last 2 months.
As inventory increases and supply increases the demand on homes will subside a little. Ottawa hasn’t seen such a strong sellers market for decades, as mentioned earlier, low interest rates, lack of inventory and the impending HST introduction on July 1st has caused a lot of sellers to hit the market prematurely and a lot of buyers to be frustrated and over paying for homes in the usual slow months of real estate. As the top real estate team in Ottawa and as the top authority on real estate in the Ottawa area, I have good news to report on the soon to be balanced market. Ottawa residents have seen the average sale price in Ottawa go from 300k to 330k overnight and the threat of a bubble has caused a few economists to worry. I am pleased to report the economists are worried for no reason as the market is changing and changing fast. Home sellers are hitting the market at a torrid pace hoping to cash in on this dream sellers market. Unfortunately in Orleans the market has peaked and home sellers are now in heavier competition which will cause for more accurate pricing and less demand for homes as supply increases. Ottawa over the years has seen sellers markets, buyers markets and balanced markets, as Ottawa’s authority on real estate I am confident to say that the only market that creates a win-win for all involved is a balanced market which is where Orleans is heading for a while.
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