Buffini’s Market Predictions

2023

As we wind down 2022 and get ready for 2023, I’ll be focusing our market update on the coming year based on Brian Buffini’s predictions. If you are looking for the latest on the Ottawa Real Estate market, you can get that in the Ottawa Real Estate Board’s November press release here: www.bit.ly/3PFwdLr

The first factor to consider for 2023 is that inventory continues to remain tight due to low housing supply and will continue to tighten as the government hopes to attract one million-plus immigrants over the next three years. This underlying factor is backstopping the Real Estate market, making it a strong long term investment and great hedge against inflation.

Interest rates are at a 10-year high with a 5-year fixed variable rate of 5.72% House prices have fallen by 8.5% in Ontario and 4.5% in Ottawa year-over-year. Additionally, stress tests put in place to protect the consumer are making it more difficult to purchase a home. All combined, the short term effect is that 44% of buyers have decided to put their purchase plans on hold. Given the long-term potential for the market, lower competition and cheaper prices, now is a great time to buy for those who can afford it. Brian Buffini’s motto for 2023 - buy and re-fi (i.e. buy now to take advantage of market conditions and refinance in 1-2 years as interest rates cool).

Sellers are also waiting to sell given the long-term market potential and short-term softening prices. Rising interest rates are causing some distress for owners with variable rate mortgages, so expect some houses to come on the market for those who cannot wait.

Expect 2023 to be a year of transition and opportunity!