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Higher interest rates could be fast approaching!

The first Quarter of 2022 will be the most substantial environment for sellers; Time is of the
Get ready to experience another crazy year in the Ottawa Market, similar to what we saw over
the last two years. Especially during the first quarter of 2022 (January, February, March).
Buyers who couldn’t get into the 2021 housing market are frantic to make their move before
potential interest rate hikes.

2022 Market Predictions
● Q1 will be an extremely strong seller’s market.
● Pent-up demand from buyers who were unable to achieve their housing goals in 2021.
● The prospect of higher borrowing costs will trigger another feeding frenzy in the Ottawa
Real Estate Market.
● With the critical lack of inventory – demand will continue to outpace supply in Q1.
● The Federal Government plans to increase immigration levels which always brings a
surge of new demand.
● The onset of another lockdown due to the Covid-19 Omicron variant, which will again
hyper escalate the importance of a home to enable a stable, comfortable environment to
both live and work.
● Travel plans and entertainment will again take a back seat and housing needs will
continue to be a priority that has defined the last 2 years due to the pandemic.
● Local first-time buyers and newcomers to Canada are choosing to buy here. Ottawa
offers a vast amount of green space and still has greater affordability than other major

Higher Borrowing Cost Will Trigger Another Feeding Frenzy
Buyers are desperate to get into the 2022 market as purchasing power will be affected by the
18-year high inflation rate, along with potential mortgage rate hikes.

Interest Rate Predictions For 2022
● We could see 1 -3 hikes in interest rates throughout the year.
● The Bank of Canada could raise interest rates multiple times during 2022 with the
potential of the first increase slated for Q2.
● Higher interest rates fuel less demand, cooling the RED HOT housing market.

How Will This Benefit You In the Next Three Months?

● Your equity has bloomed! With a 20% increase in Ottawa home prices in 2020, and a
24% increase in 2021. It could be the time to make your next move.
● Your home will sell quickly and more than likely in multiple offers, therefore giving you a
very healthy return as demand still outpaces the supply.


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