The official start of Summer is only 11 days away!
As excited as we’re sure you are for the pool parties, beach days and warm summer nights – we also know that some of you are keeping your eye on the Ottawa real estate market to see if it’s also heating up.
So, without further adieu, here’s our Summer Market Outlook for Ottawa:
Increased Mortgage Rates Will Slow Demand But Not Drastically.
As we’ve seen throughout the Spring, mortgage rates have risen steadily and are almost back to pre-pandemic numbers.
This has helped slow demand but won’t have the power to drastically reduce the sales numbers. Sales will remain within historic highs, maintaining a tight market that will continue to put upward pressure on pricing.
Pre-Pandemic Habits Might Impact Buying Power.
With restrictions almost entirely lifted, people are going back to their pre-pandemic spending habits. When people start eating out, travelling and generally spending more than they have in the last two years, their buying power will ultimately be reduced.
Aggregate Home Prices will Rise.
Royal LePage predicts that the National aggregate home price will rise 15 percent year-over-year in 2022 to $895,000. This is an increase from their previous prediction made in December.
Representatives say the reasoning behind increasing predictions is that the first quarter of 2022 was so strong that regardless of the inevitable buyer fatigue and ease in demand, the numbers for 2022 will be higher.
Home prices in Ottawa are expected to rise 13.0% this year.
There might be a Rental Market Rebound.
These last two years, the rental market took a hit across the country (and the world) due to the pandemic. With lifted restrictions, we expect to see a significant rebound in the rental market, specifically due to students returning to campus & an increase in immigration to Canada.
Areas close to the University of Ottawa & Carleton University will likely see a resurge of students this summer & into fall.
Stay tuned to our socials for more frequent market updates! Follow us at @adammillsrealty
