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Elisabeth & Jim Hamilton
THE MARKET INSIDER
Market Trends – An Early Spring Market
Q&A – Should I Buy or Sell First? | Downtown Opportunity
Q&A – Should I Buy or Sell First
We get this question a lot. If I buy first, how do I know when my house will sell and for how much? Could I be stuck owning two homes? If I sell first, will I be able to purchase the home I want? Will I risk being homeless?
While strategies vary greatly depending on your personal situation, in this market buying first often makes good sense. Consider the following:
As reported in Jim’s interview on CBC’s All in a Day, home buyers are flocking to rural areas in large numbers. Attracted by lower prices, more space and proximity to nature, this wave is putting upward pressure on rural and suburban property values. But what does this mean for downtown properties?
Buy low, sell high – as growth in rural areas outpaces urban areas, there is an opportunity to invest in downtown properties while they are “on sale”. The rural trend will run its course as prices continue to rise due to demand and we emerge from the pandemic. When it does, higher equity in rural properties will make a downtown purchase much more attractive.
Downtown benefits have not gone away – shorter travel times, proximity to retail, access to cultural events, and a greater sense of community are all attractive qualities of Ottawa’s urban core, particularly so as COVID restrictions ease. Add to this an explosion in new development and a growing mass transit system and you have a very attractive lifestyle in the city.
An Early Spring Market
Perhaps due to forecasted higher interest rates, the anticipated easing of government COVID restrictions, or an uptick in economic activity, Ottawa’s spring housing market got an early start this year. February saw 52% more transactions than January. While an upward trend in activity is normal this time of year, this growth is significantly higher than usual. House prices also continue to grow. The average sale price for a condominium-class property in February was $466,682, an increase of 15 per cent from 2021, while the average sale price for a residential-class property was $837,517, increasing 17 per cent from a year ago.
Has our spring market come early or will it continue as it traditionally has through to the summer? Higher interest rates and other macro factors in the global economy are headwinds to watch to be sure. But, continued strong demand and inventory scarcity are unrelenting and continue to put upward pressure on the housing market.
New listings offer a glimmer of hope for buyers as they are 4% higher than the five-year average for February and up 12% from February, 2021, no doubt as a result of strong price growth. This news is tempered with 0.7 months of current inventory and the continued downward trend of Days on Market as new listings are quickly snapped up.
“Ottawa is a beautiful city with a healthy, stable economy and is a utopic place to work, live and play. It attracts Canadians from other cities and people from all over the world. But it is deeply entrenched in a Seller’s Market. This means homebuyers need to have all their ducks in a row and are prepared to move expeditiously.” said Ottawa Real Estate Board President Penny Torontow.
While the market can be daunting, Elisabeth and I continue to successfully help our clients make strong housing moves during these unparalleled times.
OREB | Rina@oreb.ca
A Note from Us
Life is busy, but we are never too busy for you. We’d love to connect for a coffee, visit, walk or whatever…
(613) 276-1675 | Elisabeth@ElisabethHamilton.ca
(613) 867-1675 | Jim@ElisabethHamilton.ca
Our Clients Say the Nicest Things!
“Our first home-buying experience has been such a positive one thanks to you both.”
Simon & Amanda
Elisabeth & Jim Hamilton
Innovation Realty, LTD.
376 Churchill Ave N Unit 101
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