There’s a lot of fear and uncertainty circulating when it comes to the state of Canada’s housing market. News outlets are talking about a looming recession, rising interest rates, and inflation at an all-time high, and everyone is left wondering where the housing market will go in 2023.
Whether you’re looking to enter the market or want to make sure your investment is safe, everyone’s mind is on the same question: will there be a housing market crash?
While we can’t tell you with absolute certainty that there won’t be a crash, here are a few reasons why it’s more unlikely than you think for Ottawa.
Rising interest rates aren’t enough to completely halt buyer demand in Ottawa. While we have seen buyers become a little more cautious when offering on properties, the offers are still there.
There are many reasons why buyer demand in our city remains strong, but some key attractions are our booming economy and job market, as well as relative affordability compared to other major cities in Ontario. From a cost compared to space standpoint, Ottawa remains a market that provides extreme value and therefore attracts buyers from across Canada. In times of economic uncertainty, Ottawa is seen as a stable economy based on historical data and trends.
There has been a slight increase in supply this year, but the rate at which demand has grown far outweighs the supply growth. In fact, in some areas with extremely high demand & low inventory, we still see multiple offer scenarios.
While there are plans to increase the housing supply across the province, progress on this front is relatively slow due to the cost of labour and supply shortages. Government plans to increase housing supply consist primarily of townhomes and semi-detached homes, leaving high demand for detached, single-family homes.
What we really see here is a return to a more balanced market, not a crash. We went through two years of dealing with an unprecedented hot housing market, so any sort of cooling is sending people into a frenzy.
A cooling market just means we’re going into a more stable market. If you thought investing in real estate would result in a quick return, you’d be sadly mistaken. The time to sell has passed, and now owners are in for the long hold game.
If you’re looking to enter the real estate market, there will continue to be opportunities to do so, despite rising interest rates. Speak with a real estate agent to get an accurate idea of what’s possible for you in this market.
Contact us if you’ve already entered the market and are wondering if now is a good time to sell! Not every situation is equal, so selling now could still be a good option depending on your goals and property.