If you’ve been following the property market over the past few years (both in Ottawa and across Canada) you’ll have noticed there has been a shift. Mortgage interest rates have risen and there’s less of a mad scramble of buyers looking to get their hands on real estate. You might feel like you missed your window as a buyer, but you’d actually be wrong—and here’s why. As an Ottawa Realtor with a decade of experience, here are my top three reasons why now is a good time to buy.
1. The rising interest rates actually balanced the market for buyers.
Interest rates were quite low up until March 2022, which can be very alluring to a buyer for obvious reasons, but it also meant the market was extremely unbalanced, in what is commonly referred to as a “seller’s market”. It meant that there were far more buyers than sellers out there and that while house prices were soaring, buyers were often caught in bidding wars on the small number of homes that did enter the market. The market was moving fast, sometimes with homes selling in days or even hours.
This unbalance is a huge disadvantage to buyers, not least because buyers often end up missing out on the homes they want because of the amount of competition, but also because of the risk of potentially paying more than necessary in order to secure a property.
Now that interest rates have risen, the market has balanced out. There is far more inventory of homes available for sale, and thus people have more choice when looking. With this balancing, house prices have also dropped, and with less competition, the buying process is feeling overall a lot less stressful: there is more time to make your decision and opportunity to negotiate.
2. Interest rates will change again; you can renegotiate in the future!
More often than not, buying a home is a long term investment. When you’re planning to purchase a home for the next decade(s) of your life, consider that the rate when you purchase is not the rate you have to pay forever. As mentioned, right now buyers are benefiting from lower house prices as well as more properties to choose from, so if you find the right home for your future, you may be glad you bought it now when you renegotiate your rate down the line when the interest rates change again.
Beyond that, there are always many options when it comes to your prospective mortgage. If you want to feel stable you can choose a fixed rate. Even now in January 2023 with yet another rate increase, the 25 year average for fixed rates is still 5% which is still very good according to Kevin Mayer, an experienced Ottawa mortgage agent.
Speaking with a mortgage expert alongside your realtor can help you plan your long term strategy so you have a clear plan that will work for your individual and specific needs.
3. It’s not about timing the market, it’s about your time in the market.
Whether you've found yourself ready to be a first-time buyer, or you need to change your living situation, it's important to remember that your needs and goals are the priority, not the interest rates. I have been fortunate enough to work with many clients in various positions over the past ten years, and there is always a reason to feel wary or to be cautious—that is where I come in. Me and my team are here to protect and safeguard your interests in the home buying and selling processes so that you can move onto the next chapter in your life, whenever that may be.
The first step is easy: let’s chat! Get in touch anytime via email, phone or social media.
melanie@melaniewright.ca
613.769.6113 (cell)
@melaniewrightrealestate
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