If you’ve been keeping a close eye on the Ottawa housing market, you may have noticed some listing prices trending downwards of late.

While this seems promising for first-time buyers or those with tighter budgets, you still need to be careful.

We’ve noticed a number of listings coming on the market recently with asking prices well below the current market value.

And, sure enough, these houses are selling for much more than asking.

High Home Prices

While you may be feeling hopeful about seeing some lower home prices on the market, we wouldn’t get too excited just yet. The average price for a residential property sold on the Ottawa Real Estate Board in March was $853,615. That’s a 13% increase from March 2021.

Considering that March 2021 saw the average home price increase 35% year-over-year, it is safe to say that this spring market isn’t cooling down just yet.

In fact, it may only be getting more competitive.

The total number of sales on the market last month went down 10% from the previous year. Keeping in mind that last March saw an unprecedented amount of activity due to breaks in lockdowns and an early spring, this makes sense.

However, with 2,011 properties sold, March 2022 still saw 12% more sales activity than the 5-year average.

No Sign of Slowing

Compared to the number of units sold in February, March saw a 42% increase. As this month is often used as an indicator of the activity we will see in the spring, we can expect a strong season ahead.

We know that there continues to be a pent-up demand of local buyers waiting to purchase properties, which has led to homes spending less time on the market. At this point, the inventory for Ottawa is just slightly above a half month’s supply.

As such, buyers are facing difficulties in finding and obtaining a property. They are often working with tight timelines and facing multiple offers.

And, with prices remaining high, many buyers are also dealing with budget constraints.

The inability to find enough suitable and affordable housing options is reflected in the growth of rental deals completed by OREB agents in March. By this time last year, 1,079 units had been rented through MLS.  This year, the number is already at 1,291.

Word to the Wise

Buying a house in this market isn’t easy, but it’s certainly not impossible.

You just need to be as prepared as possible. Get pre-approved, know your budget, work with a Realtor, and have a strong offer strategy. This will go a long way to helping you save time, prevent stress, and find something that works for you.

Our advice to buyers in this market is this: don’t assume that asking prices reflect the current market value of your home. If you see something of interest to you, speak to your Realtor to find out whether you would be able to consider that home within your budget. They will be able to tell you quite easily how it compares to recently sold homes.

And, if you do see something that works for you, then your Realtor will be your best asset when it comes to making a strong offer.