How To time The Ottawa real Estate Market - Greg Hamre - RE/MAX Affiliates
Everybody's trying to time the market. ⏰
If you're a buyer or a seller, you're thinking is now the time. ⏳
My name is Greg Hamre from RE/MAX Affiliates in Ottawa and the Hamre Real Estate Team.
We're at the halfway point of 2022, 60% of all buyers have already purchased their home this year. For those that purchased in the first quarter, they were getting interest rates of 2.09% to 3.5%
Homes were very affordable to own.
Now we're, we're sitting in the midway point where we've seen a few price increases already in interest rates. And now we're sitting at 5.09%
So your average monthly payment has not quite doubled, but it's getting close to that. What that does on the purchasing power is it pushes people to lower price categories or puts pressure on.
A lot of buyers are sitting back right now.
We can see the activity that they're out there. They're sitting on the fence. Now is the time that consumer confidence in the marketplace is questionable.
The reason you might wanna buy now is because of affordability.
If rates do go to 8%, Look at what your monthly payment will be locked in at it for a five year mortgage.
And you're locked in at almost twice of what you could have bought and much higher than you would have paid today. Also, the selection is at its best and inventory decreases from here on in for the rest of the year.
Some sellers may pull out thinking if this is not the time, I'll wait to market out. So you won't have the same selection.
But it's mainly about affordability. We can get you in right now for a five year fixed rate at an interest rate around 5%, which is still very attractive, and you'll be comfortable living in your own home, and building on your equity.✅
If you are a seller and you're basing the sale price of your home from 120 or 150 days ago, you might be getting in trouble.
You need to make some adjustments.
45% of the homes that we reviewed. In the last 24 hours have done a price drop and or canceled and, and come in with a new price point.
They've realized that they need to flex because of market flexes. The reason you want to do that is because, as if the interest rates go up, there'll be less buyers that can afford your home today.
We're in just the July 1st long weekend. So we're at night we're 60 days to Labor day. We're 120 days till the first snowfall❄️ starts. So timing is critical.⏰
If you're a buyer and you're thinking I'm gonna wait this out and buy in the fall, affordability may be a problem. It will cost you more to get locked in.
So timing is important. If you're thinking that now may be the time to list and or sell, I wanna talk to you. We can, we can guide you through this market. It's still very vibrant. We're very active.
My team is in full gear and in full flight, making things happen for buyers and sellers.
Inspiring dreams is what we do.
If there's a dream that you have, and it involves real estate, we wanna be a part of it.
Again, my name is Greg Hamre from RE/MAX Affiliates in Ottawa and the Hamre Real Estate Team.
We hope to see you soon. Take care.