Strategic Timing: When to Make Your Move in Ottawa's Real Estate Market

If you're contemplating a move, you might be wondering whether it's wiser to wait until mortgage rates drop before making your move. Let me provide some insights that might help clarify this decision for you.

In the real estate market, there's a well-established correlation between mortgage rates and buyer demand. Generally, higher mortgage rates lead to lower buyer demand. This is because potential buyers, perhaps like yourself, might be reluctant to commit to higher mortgage rates for their next home purchase. Consequently, many decide to postpone their moving plans.

However, when mortgage rates begin to decrease, we observe a shift from limited or tepid demand to robust and active demand. This surge typically comes from buyers who previously hesitated while rates were high but are now ready to make their move. Below, you'll find a graph that illustrates this dynamic clearly and shows the current state of the market:

As Lisa Sturtevant, Chief Economist for Bright MLS, notes: “The higher rates we’re seeing now are likely going to lead more prospective buyers to sit out the market and wait for rates to come down.”

Why You Might Not Want To Wait

So, what does this mean for your move? Here’s the crucial point: although experts anticipate that mortgage rates will eventually decline this year, they expect this to happen later than initially predicted.

When rates do fall, you can expect a significant return of buyers to the market. This influx means you'll face much stiffer competition from other buyers when you try to purchase your next home. Waiting could make your move more stressful due to increased demand, potentially leading to multiple offer situations and rapidly rising prices.

However, if you’re ready and able to sell now, it might be advantageous to get ahead of the curve. By moving before the competition picks up, you can potentially avoid the rush and benefit from the current market conditions.

Bottom Line

If you're deliberating whether to wait for lower mortgage rates before moving, remember to consider how changes in buyer demand could affect your plans. If you prefer to get ahead of the competition and sell now, it’s a good idea to discuss your options with a real estate professional.

For more personalized advice tailored to your specific circumstances, or to explore the opportunities available in today's Ottawa real estate market, feel free to reach out to me directly. You can contact me through my website at www.markbelangerrealty.com, or schedule a time to chat via my Calendly. Whether you’re looking to buy, sell, or simply get a better understanding of your options, I’m here to help guide you through every step of your real estate journey.