August market impacted by uncertainty
What’s the situation on the market?
It’s no secret that the market is changing. And with yet another mortgage rate increase this month, it’s clear that it’ll have another impact on the real estate market. But what will we see going forward? Let’s start by having a look at how the market fared in August.
August is generally a slower month for Ottawa real estate simply as the second month of summer vacation, many are on vacation and ‘back-to-school’ is on the horizon. But this year, the already slowed down market faces a unique, additional compounding factor: uncertainty. Interest rate hikes are impacting buyers’ decisions and we are seeing a power shift from seller to buyer, beyond the pandemic market craze.
This means that the average number of days a property stays on the market is getting closer and closer to the 30-day mark as buyers not only have more, but take more time to make their decisions. More time means more opportunity to follow the usual buying process and facilitate financing and inspection.
With regards to pricing, some areas are still seeing an increase, just at a much slower, steadier pace, as expected among the typical Ottawa market. With close to 3 months of inventory for residential class and 2.2 months of inventory for condos, we are getting closer and closer to that balanced market.
It’s important that buyers have access to all their choices and sellers are pricing their properties strategically based on market activity. This is where working with a realtor becomes even more helpful than usual! You know who to call! Or reach out via info@goodstory.ca!
Related links:
- The Ottawa Real Estate Board: Buyer Uncertainty Slows Down August Resales
Ottawa Citizen: ‘Buyer uncertainty’ further slow sales in August: Ottawa Real Estate Board
