By Michael McWilliams
To buy a home or not? Sometimes that seems like a scary proposition. I do not remember a time when I thought the price of a home was so low that I should just get out there and buy one immediately. It has always seemed like a challenging process. There is always the question of whether it is the right time. I have often had these nagging doubts about whether we were in a bubble, or the interest rates were too high, or I didn’t have enough money to buy my dream home or there might be a recession. There was always an abundance of reasons not to buy a home.
The real estate market in Ottawa—much like the rest of Canada—is going through yet another cycle. The cost of residential housing in Ottawa had been increasing rapidly for several years before the onset of the COVID 19 pandemic in early 2020. During the pandemic, the market got even hotter as buyers felt compelled to get into a home before they were priced out of the market. This all peaked near the end of 2022, and since then the market has softened to a point that we might consider it a balanced market today. This certainly does not mean that the price of housing has fallen in any significant way but rather that there appears to be approximately the same number of buyers as there are sellers in the market currently.
Real estate in general is always a hot topic. It is a popular dream to own a home, yet the ability to buy a home seems to be slowly slipping out of reach. The condition of the market is always evolving due to the different people engaged in buying or selling real estate at any given time. This is all made even more complicated by ever-changing factors such as interest rates and economic conditions. So many of us would just like to buy a home and live happy lives in the communities in which we live and work. If we think of all the challenges of buying and owning a home, we might talk ourselves out of it! Property taxes, maintenance costs, landscaping, condo fees, utilities … the list goes on.
But it’s not all bad. We are fortunate to live in a beautiful city filled with wonderful neighbourhoods like Lowertown and the ByWard Market. Despite the current economic uncertainty in the world, home ownership is still attainable. There are many systems in place to help people achieve their goals in real estate. There are many people in the industry to help navigate the path to home ownership, including realtors, mortgage brokers, lawyers and investment experts. Furthermore, there are many positive reasons to make the effort and consider getting into the real-estate market. Owning a home gives a sense of permanence and peace of mind, and can help us reach our financial goals.
In conclusion, while it may seem like a scary proposition, home ownership is still within reach for people who dream of owning their own home. Consider the current conditions of the market and decide what makes the most sense for your long-term goals. History tells us that while there are always ups and downs in the real-estate market in Canada, it has always trended upwards in the long run. So now might the right time to determine what you want and make a plan.
Michael McWilliams is a sales representative with Engel & Volkers Ottawa Central.
