Good New for Buyers: Conditional Offers the Norm on Ottawa Market in August

Dated: September 7 2022

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At the start of 2022, the Ottawa housing market looked like the Wild West of real estate.

Listings were being sold faster than new inventory was coming in. Most properties had multiple offers that led to bidding wars.

But this summer, things have slowed.

Market balance in 2022

If you’ve been following our Ottawa real estate market updates, you will have seen that inventory has finally begun to rise to a normal level (currently about 3 months) and the average number of days on market has gone up as well.

At the same time, there are fewer bidding wars happening and price increases are much less dramatic. In fact, although the average sale price of residential properties was 5% higher than last August, at $707,712 the average sale price went down a little more than 1% from July. This time of year is commonly slower, but the rapidly-balancing market has made this August different from the last few.

A total of 1,137 residential class properties sold in August 2022, a decrease of 27% year over year.

And, as of August 2022, it has once again become standard to see finance and inspection conditions on purchase offers.

Buyer benefits of having conditions

The resurgence of these standard conditions is good news for buyers.

In multiple offer situations, buyers who make conditional offers often get passed up for guaranteed money, causing some to feel that they have to take risks on real estate purchases.

However, buyers can now feel confident making their offers conditional upon getting an inspection or mortgage approval.

Not only will this give buyers more peace of mind, but it will help to satisfy their insurance companies as well. If the house is inspected before the deal is finalized, the insurance company will often have much more confidence in the state of the home (and for good reason).

These inspections are also beneficial for helping buyers to know what work needs to be done. Then they can appropriately prepare or negotiate with the sellers to address any major concerns. And, if the home is not up to code, you have the ability to choose to exit the transaction and continue looking for another house.

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Paul Schnittker

Almonte has been my home for many years, and I love living and working in this community. I moved from sales to Real Estate in 2016 because I wanted to help others find their dream home here in the Ot....

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