Have the prices gone up since the rates went down?
I looked at prices of the median residential home across the major suburbs in Ottawa within 10 days of the past 4 rate reductions to track, if any, the impact on prices.
Here’s what I found.
Question: Have the prices gone up since the rates went down?
Hypothesis: Yes, I bet they went up a bit.
Research:
Baseline: April 10th +10 days = Median Price of $691,000
Now let’s start lowering rates and see what happened!
June 5th impact? $695,000 ok. small but fair
July 24th? $672,000 probably just a one-off
Sept 4th? $680,000 better, but still lower than baseline
Oct 23rd? $677,000 that’s really weird, rates dropped .5%
Analysis: Well, it looks like in this particular instance, the prices have NOT gone up since the rates went down. Technically, they also went down.
Conclusion: In Ottawa’s suburbs, prices for residential properties have NOT gone up since the rates have started to come down. I believe this is really due to the financially conservative nature of the residents given the drop in values we saw after the Covid bubble. We’re not used to big swings in value like that, and I think it put us on our heels. People are still being very careful with their spending.
There you have it. I’m honestly surprised as I at least suspected a 20K rise in the average price. Nothing big, but enough to show that people are at least opening up their pocket books just a little more.
Seems that’s not the case.
If you have any questions let me know 🙂
The Evans Real Estate Group Blog 