Who is most at risk in a slowing Ottawa real estate market?

Published 01 November 12 09:00 AM | Gord McCormick 

Our recent market changes will affect all participants but
who is at the most risk in this downturn? (in no particular order)

Those who had signed up for new construction properties some
time ago and still have an existing property to sell, will face a different
market to sell in than they bought in and this could be both stressful and
costly. 
Investor category buyers of both homes and condos who were
planning a quick "flip", based on the assumption of a continually rising
market.
New condo buyers may see project and delivery date delays,
which causes uncertainty and disappointment.
Those who have sunk in large $$ amounts in upgrades, Reno's,
landscaping or other improvements, really run the risk of being "over improved"
and price their properties too high for the market.  Cost value of improvements does not equal
market value in a 1:1 ratio and it is easy for sellers to lose sight of this.
Higher priced homes could face a shortage of buyers, as "move
up" buyers from mid-priced homes ($300K-$500K) are unable to get their
anticipated selling prices and thus choose to stay put.
Homes that have been on a "deferred maintenance plan" for
many years that require buyers to spend a lot of cash post possession, can
really expect to have a rough ride in this market.  Most buyers prefer to pay for improvements on
a low priced mortgage not out of cash flow, other savings or costlier lines of
credit.
Sellers that have very unique or unusual properties that are
looking for that "certain buyer" in a smaller buyer pool will have more trouble
than usual also.
Sellers of newer homes in areas with ongoing construction
activity could face increased competition and price pressure, if builders choose
to drop prices or add inducements to move new home inventories.
Owners planning to rent out properties will see pressure on
monthly rental revenue potential, as more unsold properties continue to flood
the rental market.
A tougher market makes it all the more important that buyers
and sellers have the best professional advice and assistance possible.  A REALTOR® can help their clients navigate
these slightly "choppy" waters and also plan and manage their
expectations.  If you are in need of
professional advice concerning your buying or selling plans, by all means give
us a call.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692
oasisrealty@rogers.com  oasisrealtyottawa.com

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