Ottawa, ON (PRWEB) January 14, 2016
2016 is looking like a good year to buy a new home in Ottawa. The CMHC is forecasting growth in average sale prices of 1.2% to 1.4% for this city, and interest rates are going to stay fairly low. This means it’s safe for homeowners to sell their current homes, as they’ll get good return on investment.
The news may be full of reports that may cause some prospective home buyers or sellers concern, but when the overall fundamentals are examined the market still looks good. Some of the factors that will be keeping the Ottawa real estate market healthy in 2016 are listed below.
Insulation From Economic Ups and Downs
As a government town, Ottawa is relatively sheltered from things like falling oil prices that are making life hard in Alberta. Since the Liberal win in last October’s election, the middle class has more confidence in job security, and therefore aren’t putting moving plans on hold.
Ottawa continues to be one of Canada’s safest markets. Whenever there has been a dip, there’s been a recovery within two years.
Interest Rates Won’t Rise Significantly
The RBC just raised its mortgage rate, but not by a large amount: five-year fixed mortgages are going up to 3.04%. Buyers and sellers should not panic, however, even though they are used to low interest rates. They should think back to the 1980s, when the interest rate peaked at 21%. Even in the 1990s rates were higher than they are now.
Baby boomers are still active and healthy, and are looking to trade their large empty nests for smaller homes. Millennials are ready for their first home purchases. Single women are buying their own homes as well.
These groups are all looking for smaller homes, which will continue to do well in 2016. Rowhouses will see high demand, as these groups are all looking to spend more on lifestyle and less on housing. Larger homes and bungalows will continue to see less demand, unfortunately.
A Downside for Investors: Properties Won’t Flip
Investors should not expect to flip properties right away, unlike a few years ago. Investors will need to be patient and keep their properties for a few years. Property managers will also find it more challenging to find good tenants with the higher than normal vacancy rates.
Overall the market will continue to see a fairly good balance - it’s reasonably even, with things being slightly in favour of buyers.
Read the Paul Rushforth Real Estate full analysis of the 2015 real estate market and look ahead at 2016:
About Paul Rushforth Real Estate:
Paul Rushforth and his team are currently earning the highest volume of sales in Ottawa. They help buyers, sellers and investors alike get the best possible price on real estate. Supported by a large team of specialists, Paul Rushforth is able to get fast, professional results.