Bidding Wars in the Ottawa Real Estate Market
With Ottawa currently experiencing low volumes of real estate resulting in a seller’s market, buyers are willing to compete in order to buy.
With Ottawa currently experiencing low volumes of real estate resulting in a seller’s market, buyers are willing to compete in order to buy. Bidding wars have become common place among in demand areas and homes with larger lots that have the potential to be severed.
One of the implications of stress test introduced in January has been that fewer people are looking to sell their homes for fear of not qualifying and given the limited inventory. Ottawa has seen an increase to the tech sector combined with the stability of the federal government which has increased the number of buyers. Purchasers who have been priced out of the Toronto markets have also been moving north towards the affordable capital city.
Given the demand for property and homes, real estate agents and sellers have benefited from the frenzied buyers by hosting open houses with the ability to make an offer held on one day creating a competitive offer situation. This pushes the listing to over-asking price and limits the conditions some buyers count on in order to ensure the home is inspected and their financing has been approved.
Working with a Mortgage Broker can help clients navigate these tricky scenarios.