In early 2022, all the headlines tied to the housing market lamented how challenging it was for buyers. Home prices were experiencing record highs, mortgage rates were low, and buyers were purchasing properties without an inspection or even stepping foot in the place. Now, rates are higher but prices have started to correct. Here are the considerations and planning you should be doing if looking to buy in 2023!
Some Background
In 2020 and 2021, buyers found themselves in the midst of one of the most competitive markets ever. Due to the low interest rates, investors were also flooding the market to capitalize on the low lending and high asset dynamic, contributing to prices rising. Many homeowners, in turn, began to sell to take advantage of the high prices.
Buyers then had to submit initial offers that were well above the asking price just to be considered. Bidding wars were becoming all too commonplace and this continued for some time. Since then, interest rates have risen, inventory has stabilized, and exorbitant prices have started to come down in the places they had shot up.
A Question of Timing
If you’re ready to and capable of buying, just do it. Simply put, it’s next to impossible to predict ‘the perfect time to buy’. Trying to time the market is best left for developers and investors, not homebuyers. If you’re in the financial position to buy and plan on living there, now is as good of a time as any to go for it! While prices might continue to drop, real estate has always been a long-term investment play, especially in Ottawa. You need a place to live, and you certainly won’t be saving much by continuing to pay rent.
Buying in the Winter
Contrary to popular belief, there are actually a lot of advantages to buying a place in the winter. Winter is, for obvious reasons in Canada, the least busy season for activity. With house hunting being slower, you’ll likely have an easier time getting your offer accepted… maybe even a better deal! Given the intense competition of late, why not use this to your benefit?
You also get to check on the condition of essential property elements with respect to the harshest season of the year. You’ll get to inspect window and door frames and get a sense of how they are sealed. If there is a draft coming through, negotiate this in the final sale! Again, if you’re in the position to buy now and will be living in the home, now is the time!
More Changes Coming
Due to that recent history we covered, there have also been lots of efforts and changes being worked on policy and regulations wise for home buying and selling. First off, some foreign buyers will no longer be able to buy homes in Canada for two years, which has been a contributing factor to market prices. The First Home Savings Account will be introduced and allow aspiring buyers to set aside up to $40,000 towards the purchase of their first homes.
The provincial government is also set to introduce new regulations in the spring to help make the home-buying process more transparent. Currently, home buyers submit offers but don’t get to know what the other offers are. Under the new regulations, a seller can choose to disclose the details of competing bids to create more like an auction-type situation.
As a buyer, you’ve got options. There’s less competition now than a year ago and there are fewer chances of bidding wars. What you need is a local agent who is familiar with and understands what’s going on in the market and how that intersects with your individual needs. So let’s prioritize your buying requirements and deliver on your home desires.
Make buying easy and contact New Door Ottawa Real Estate Team today. We’ll help find your dream home at the right price!