Understanding “The Spread” in Downsizing
There are a lot of great reasons to downsize: health, family or the environment to name a few.
But for many of the downsizers I talk to, one of their key concerns is – $$$ – money.
After all, downsizing isn’t easy, and you are are thinking of selling your home you probably want to come out with more money in your pockets, so you can live the life you want to live after downsizing.
And if that is your goal, you need to think about “The Spread”.
What is “The Spread”? The Spread is the difference between the price of the property you are selling, and the price of the property you are moving to. Simply put, the Spread is how much money you are likely to have in your pockets after downsizing.
Now, the good news is that the Spread has gone up for your average Ottawa resident since 2019. Here are the stats:
In 2019, the average condo in Ottawa sold for $304,203.
In 2019, the average residential home sold for $486,590.
That means that in 2019, the average Spread was $182,387
Now fast forward to 2024. The average price for a residential home is now $829,302 for a in June 2024 – up 70% from 2019.
And now the average condo is $455,939 in June 2024 – up 49% from 2019.
The Spread now is $373,363 – for your average home vs your average condo in Ottawa.
That’s an increase of 104%.
Good news for down-sizers.
Now of course, prices are up, interest rates are up, and a lot of people are struggling, and I don’t want to minimize that.
But the Spread between condo properties and single family homes in Ottawa has probably never been higher than it is today.
If you are looking to increase “The Spread” in your downsizing plan, one way to increase the spread is to find properties that are a great value.
That’s why one of the services I offer is to provide priority access to Off-Market Properties, Foreclosures, Private Sales, Power of Attorney, Estate Sales and More to our valued clients. These are properties that are often not listed on the MLS, and often sell for quite a bit less than similar properties in the same neighbourhoods.
With some of these properties, you can save 10% or more off of comparable properties.
And that means more money in your pocket – so you can live your ideal life after downsizing.
If you are interested in receiving priority access to these hard-to-find real estate opportunities, just sign up at the link below and you will be notified as soon as properties meeting your criteria come to our attention – before they hit the market.
Click here to find out more about hard to find and off market real estate opportunities.
Best,
Chris
Statistical Sources:
https://www.oreb.ca/newsroom/record-breaking-2019-closes-out-decade/
https://www.oreb.ca/wp-content/uploads/2024/07/OREB_MarketUpdate_HLP_June24.pdf
