If you’re a homeowner you might be feeling a little anxious about the ever-changing real estate market, and we can’t blame you! With changing interest rates, fluctuating home values, and the usual worries about selling or maintaining your property, it’s easy to feel overwhelmed. We thought we’d give some advice for some of the most common things we’re hearing from homeowners in 2024.
Changing Interest Rates
“I’m worried I won’t be able to move from my starter home because interest rates are so much higher than when I bought”
A lot of people think that once you’re in the market the stress is over but with the way the market has been over the last few years, homeowners are losing confidence. A lot of homeowners are worried that what they thought was their starter home, is now going to be their forever home because of high interest rates & overall affordability.
Our Advice: Ride it out! We know it can be stressful not knowing the future but just like anything in life, patience is key. The market will always fluctuate, so living in absolutes will never make sense. Don’t work yourself up into believing that you’re stuck forever. If right now isn’t the time for you to move on, then it’s not the time. Interest rates are slowly lowering and the market is picking up again, so sit tight and you’ll be able to make that move!
Fluctuating Home Values
“What if my home loses value before I decide to sell?”
It’s a scary thought, especially if you’ve put your heart (and some serious cash) into your home.
Our Advice:Home values can fluctuate, but they often appreciate over the long haul—especially in our beloved Ottawa. If you look at micro-trends you might freak yourself out. For example, from 2022 to 2023 the average sale price in Ottawa was down 7%. However, if you look at the average sale price from 2014 compared to 2024 it’s up almost 90%.
On average if you hold your home for 5-10 years, you’ll see market appreciation! If you’re looking to sell earlier or make even more out of your investment, think of home improvements that could boost your value.
If you’re unsure of where to start, join our Home Advisory Club! We provide expert tips and advice for homeowners and will even do a FREE home evaluation so you’ll know exactly what your home is worth!
Selling in a Slow Market
“What if I list my home and no buyers are interested?”
Our Advice: We will work together to avoid that! With our team’s expertise, we’ll set the right price and market your home effectively. A little staging and some professional photography can work wonders. You want buyers to fall in love at first sight—just like you did!
Especially in a slow market, it’s important to get every aspect of your listing right. Buyers want to feel like they’re getting value out of their home. In our experience, there’s always a buyer out there who will want your home, you just need to make sure they can find it!
Upcoming Mortgage Renewals
“My mortgage is coming up for renewal and I know my new rate is going to be higher than what I have now”
Our Advice: Shop your rate! Just because you already have a mortgage doesn’t mean you can’t look to other lenders to see where the best offer is. Your lender will send you a renewal notice before your renewal date with a rate offer. Don’t accept this without doing your research! You can negotiate rates with your lender, especially if you have a better offer from somewhere else.
Be sure you’re aware of all costs and penalties associated with switching lenders. Some mortgage contracts include fees such as a “prepayment penalty” or “early payout penalty”, make sure you understand these before switching lenders. In some cases lenders will cover some or all of this penalty for you in order to gain your business.
As an Ottawa homeowner, it’s completely normal to feel a bit jittery about today’s real estate market. But remember, you’re not in this alone! By tackling these worries head-on, staying informed, and working with a friendly team of experts (that’s us!), you can navigate the challenges with confidence!
If you have any questions or want to chat about your specific situation, don’t hesitate to reach out.
We’re here to support you on this journey because your home shouldn’t be a source of stress in your life – it should be filled with happy memories!
P.S. If you’re looking for more advice when it comes to your home, follow us on socials! We share content to help educate and inform Ottawa homeowners like you!
