We spoke with Mitch MacKenzie As we round off January, it's crucial to dive into some vital facts shaping both the residential and condominium markets as we head into February.

First off, the first 23 days of January have seen a noticeable surge in buyer activity in Ottawa, with a solid 9.5% increase in unit sales. Adding to the mix, the Bank of Canada has just declared its fourth consecutive rate hold, maintaining the status quo in interest rates. Read the Bank of Canada Press Release here.

Now, let's talk about the elephant in the room – prices. Brace yourselves; they're set to climb month by month, as they always do, even with interest rates at 5%. Take a look at last January to June and July for a glimpse into the future:

From January to July last year, average residential prices shot up by 11.7%, a whopping $79,000 increase.
The condo market wasn't far behind, experiencing an 8.9% rise from January to June, translating to a $37,000 surge.

Why does this matter for buyers?

First-Time Buyers:

If you're a first-timer, this is your wake-up call! With interest rates sitting at 5% or higher since January 2023 and prices steadily climbing, waiting it out won't do you any favors. Brace yourself for rising prices moving into the summer, meaning steeper down payments and heftier land transfer taxes.

Upsizers:

To those looking to upsize, timing is everything. If last year's trend holds, and with the same interest rates, your $600,000 townhome could swell by $40,000-$60,000, and that bigger detached dream home you're eyeing ($800,000+) might climb $70,000-$90,000. Buying now with the longest closing possible allows you to ride the rising prices when selling your current home. Alternatively, if selling first is your game plan, aim for the peak market (May/June) with a longer closing. This way, you can pounce on potential summer deals at a lower price, securing a quicker closing for your upsize.

Advice for Sellers:

Selling ain't just about timing; it's about strategy. Keep a close eye on your neighbourhood's dynamics. Knowing the monthly or even weekly sales rates can help you gauge when demand outstrips supply. Couple that with top-notch photography and a savvy pricing strategy, and you might find yourself with multiple offers and the best possible deal. Don't settle for a realtor who just throws your home on the market; find one with a solid plan to maximize your earnings in the shortest time possible.

And let's not forget – most sellers are also buyers. The "it's a wash" philosophy holds, especially in a hot or low market. However, consider the nuances – your home's style, location, and price range can tip the scales.

In summary, being well-informed in today's real estate game is your ticket to making sound decisions. Whether you're a buyer or a seller, understanding the trends and timing your moves wisely can make all the difference in your real estate journey.

Interested in how changes in the market will impact you? Reach out via phone or email!