Houses for sale in Ottawa

“The reason for that is typically the quality of asset and the type of product that you can buy is better whilst the market is still softening because the people who are exiting are doing so because they really feel they have no choice. As soon as people have kind of got to the bottom and things are getting better, the first thing that people do is not sell if they can possibly avoid it.”

Read next: What’s in store for the housing and mortgage markets in 2023?

Debt financing is problematic for many borrowers at present, with a sizeable number of lenders also on the sideline for anything other than the very best product. Equity-rich buyers, though, may not necessarily need to utilize debt to finance a deal – and could find themselves purchasing at an amount well below a property’s prior valuation.

When assets are placed on the market because of refinancing or asset allocations that are being impacted by what’s going on in the bond and equity market, “the likelihood is that they will be at quite a significant discount, certainly to the way they were trading before, and that’s an opportunity for people to pick up what they consider to be good, quality, long-term assets,” Axford said. “So absolutely, there are opportunities there.”

The current market cooldown is expected to last well into 2023, although Axford noted that Canada could be at an advantage compared to other economies whose central banks have taken aggressive action against inflation.

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