Will The Ottawa Real Estate Market Crash - Hamre Real Estate Team RE/MAX Affiliates Ottawa
📉💥Will this crash the market?
🚨Yesterday's news was the 🏦Bank of Canada raising their interest rates by 0.5%.
👉It's the sixth time this year that we've had a ↗️ rate increase and there's still another one expected.
👀Hopefully it doesn't happen.
😀My name is Greg Hamre with RE/MAX Affiliates in Ottawa📍 and the Hamre Real Estate Team, 😎 and the interesting facts are that 🗓 10 weeks into the year of 2022, 💵 the average price point of a home was $800,000.
🗓We're now in the last 10 weeks of the year and the average price point is 💰 $600,000.
🤯 That's a $200,000 price difference.
🚫 That doesn't mean that how homes have dropped that much in 🏡 pricing actually, 👉 but it is where the buyers are buying and that has everything to do with interest.
👀Will the market crash💥 in Ottawa?
No, that's not the case. 👈
😎If you look at the pie of buyers for homeowners.
The pie of homeowners is that circular disc. 🔴
➡️ 35% of those homeowners are mortgage free.
➡️ 65% of the pie have a mortgage, but they're in a positive equity situation.
➡️ 1%, uh, of the pie is 🌊 underwater, and that's in Canada.
📍Ottawa is in a very different market in general. 💎 We're different than 🏙Toronto, 🌆Montreal, 🐎Calgary, and 🐋 Vancouver, where we're a different city altogether, and you can't really follow those.
⭐ But we're actually in very good shape.
🏡The truth of the matter is we do not have enough homes in Ottawa, to support the 📊 growth of this ✈️ destination city.
😀In saying that, you have to understand where are we at 🗓 year to date.
⏰ This is the 10th last week of the year, and we have less listings coming on the market than we had in 2021 and 2020 at this time.
So there is less inventory. 📉
🗓The last five weeks, our market has been selling 🏡 300 homes a week.
🏡💰So homes are actually still selling.
Buyers are very particular. 🔎
🔑Why are buyers particular? 🔨Because you can't get renovations done quickly. ☎️ The days past when we'd call up and say, yeah, 🍎 we'll get the kitchen in done. 🌳 We'll get the hardwood done, 💎 We'll get the painting done before you move in.
✅Those contractors are working six and nine months out, so that's not possible.
🗝 Secondly, with the difference in that, in the interest rate, 💰buyers are at their max right now.
💎So when you tell 'em that they gotta replace windows or do a roof or do a new kitchen, they're.
🔑✨They really want turnkey homes and the really nice homes are selling, especially in the million-dollar-plus category, 👑 that luxury market is still very active.
We have buyers💰 that are looking for particular 📌🗺🏡 product in that price range💲 and below, especially condominiums, and they can't find👁 what they're looking for. And if you were thinking🧠💰 of selling, And you wanna save yourself the hassle of staging the home, getting the photography 📸done, your Christmas decorations🎄🎁 are going up and you don't want the inconvenience of people coming through your door.🔑
We may be able to put that piece of the puzzle🧩 together for you immediately. We may have a buyer💰 for you. The condominium market🌆 I, I've touched on a moment ago is very short of inventory🔻 in Ottawa📌, and you're seeing. Some real big growth💹 in that part of the market📊. And a lot of out-of-town investors 🌎starting to look at Ottawa going all they're building, uh, with those grains in the sky in Ottawa and there's a number of them.
All they're building👷♂️ is rental properties, rental product. And there isn't a buyer💰 owned or an investment owned product coming very limited new inventory🏘, not problem's going to exist for about the next 10 years.🔻
So, if you understand simple economics📊, supply and demand↔️, the condo market 🌆in Ottawa, Is gonna be a, have a shortage for a number of years here.🔻
And when you look👁 at that and you figure that out, the, the fall time is really when the kind market peaks because people start to think, Older👵 people and, and younger people👶, lifestyle starts kicking and they go:
" I don't wanna deal with snow shoveling. I don't want to deal with cold car. I wanna park underground."🤕
I want amenities like a pool 👙and, and recreation at a gym 🏋️♂️in my building🌇. And some of the condo developments in Ottawa give you lifestyle✨. A lifestyle like that, and more of conveniences of coffee☕ shops, restaurants, eateries🥡🥢, absolutely wonderful where you really feel like you're living in✨, in a vacation style.🍸
🗣Lastly, I want to talk to you about our snowsuit fund. The Ottawa Snowsuit Fund❄️☃ is a big part of our heart❤️ and a big part of our Camp Fall 🍂campaign. We run it for six weeks. If you have a slightly used or new snow suit, you can drop it off at any of our nine RE/MAX Affiliate offices throughout Ottawa, or call📞me and I'll come and pick it up.✅
🇨🇦 I love buying locally supporting all our local merchant🏷.
But I will give you a tip that Costco has a 30% off Snowsuits❄️☃ right now online. And they'll 🚚deliver 'em right to your house 🏡or ship 'em right to our office💨. 30% off and it's🖱 just a click🖱, click, 🖱click and it's done✅.
And then there are kids that in Ottawa that could really as appreciate your support and make sure that no kid goes out and aren't stuck inside, not able to play out in the snow.❄️☃
⛸Beyond the wonderful beauties that Ottawa📍has in our four-season ⭐ destination city. Let's see 👁 everybody out playing in that snow🤸♀️ and hopefully on the canal.⛸
🔵 🔴⚪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.🤝
#WeKnowOttawa #REMAX #OttawaRealEstate