Ottawa has seen an estimated 20% increase in the average residential sales price, with the average house sales price touching $600,000, as compared to 2019.
With over 1600 residential properties listed last month; the Ottawa housing market is potentially a seller’s market. Market experts forecast that the homes for sale in Ottawa will experience higher seasonal price variations, with a nominal rise of 5% in this year. Hence, as a buyer, you should look out for the below listed red flags, while buying a home in this city.
Many Homes on Sale in the Same Neighborhood
You will most probably start your house hunting process from various online portals. If you notice several houses on sale from the same neighborhood, then it is a red flag to avoid the community. Check the local news for any significant developments in the area in question that has urged property owners to sell their houses.
For instance, in 2018, a Toronto-based builder asked the residents of a community, about 15 minutes from Ottawa’s downtown core, to relocate. The builders had a plan to refashion the 40-acre site. You should stay updated with every development in the area you wish to invest and decline the offers from such blocks.
Some desperate home sellers try hiding faults with last-minute fixes. You should pay attention to such quick renovations since you can not predict what the homeowners are trying to cover up. You may assume the facelift might be for improving the aesthetics of the house.
The latest reports suggest that Canadians in the O-Town spend nearly $15 billion on home renovations. About 10% of these repairs, made in a hurry, hide significant faults in the house. If such improvements are not carefully scrutinized, you can end up dealing with the issues for a long time.
If a homeowner is selling his house at a comparatively lower price, there could be a few possible reasons for it. Either they are in a hurry, else there is something wrong with the house. It is a significant red flag indicating you to decline the offer.
While checking the homes for sale in Ottawa, a suspicious odor emanating from the property in question is a prominent red flag. The sources for bad smells can be moulds or clogged sewerage. A closet or the basement with no artificial scents can be excellent spots to check unusual smells.
The furnishing in the basement staged off the ground, and a musty smell, are clear indications that the cellar has flood issues. The area could be a flood zone.
The City of Ottawa has partnered with the Rideau Valley Conservation Authority to update flood maps in areas along the city’s booming south end. You can refer to these resources to identify the neighborhoods prone to floods and exclude them from your house-hunting list.
In Ottawa, starting from April 6th, the stress test, initiated by the federal government, will get easier for insured mortgages. It implicates that the buyer has a down payment of less than 20 percent. Ensure to check the above-listed red flags to avoid investing in an undesirable property.