Archives for Ottawa real estate

Stats Graphic April 2018 Highlights

The Spring market continues to buzz in Ottawa real estate, with the number of sales up over 13% in April in spite of inventory levels being down 23% over this time last year.  Home buyers are seeing more competition, which is good news for sellers.   Certainly we are seeing more multiple offers and higher sale prices, however, with prices still reasonable compared to income in Ottawa real estate these factors aren’t stopping buyers.

Hot Real Estate Market in an Icy April 

May 3, 2018 Highlights from the Ottawa Real Estate Board

 

“Full employment and reasonable house prices in proportion to incomes are fueling our market. Ottawa is not only a beautiful and dynamic capital but also one of the more affordable cities in Canada,” observes Ralph Shaw, Ottawa Real Estate Board President. “While prices and conditions do vary by area, the overall residential marketplace shows solid and steady performance on investment for homeowners, and offers a variety of property class options and price points for those looking to enter the market,” he advises.

“While sales were strong this month, certain areas in Ottawa continue to experience limited supply with both condo and residential inventory down 23.7% from the same month last year. With our low inventory, potential sellers are reluctant to put their home on the market if they are uncertain of their ability to acquire another property.”

“April’s colder than usual temperatures may have been one of the reasons potential sellers delayed listing their properties. However, there are other factors at play which are contributing to the lack of supply. Of course, the new mortgage stress test is affecting some homeowners who may no longer qualify to upsize their homes,” Shaw points out.

“Further compounding the issue within Ottawa proper is a restricted supply of serviceable land, and thus fewer new build opportunities. We need both the new build and resale inventory to be robust enough to meet demand on a consistent basis,” he explains.

“Moreover,” Shaw elaborates, “life adjustment sellers such as Boomers, lack suitable purchasing options due to urban engineering. Many of them do not want to live in downtown condominiums, preferring smaller homes with an attached garage and a decent sized yard where they can still host family BBQs and entertain. Our city council would benefit from the input of Ottawa’s long-serving REALTORS® who truly understand the variety of needs of local home buyers and sellers,” Shaw concludes.

 

 

You’ve done your research, found the perfect Realtor, crunched the numbers, created your list of must-haves and now it’s time to start the exciting process of HOUSE HUNTING! When you’re looking at homes for sale it isn’t always easy to look beyond the cosmetics.  Not to worry, we’ve created this handy graphic to help home buyers to stay focused.

Viewing tips for Buyers graphic-2

You’ve done your research, found the perfect Realtor, crunched the numbers, created your list of must-haves and now it’s time to start the exciting process of HOUSE HUNTING! When you’re looking at homes for sale it isn’t always easy to look past the cosmetics.  Not to worry, we’ve created this handy graphic to help home buyers to stay focused.

Buyers Get a Jump on the Spring Market
April 5, 2018

Members of the Ottawa Real Estate Board sold 1,660 residential properties in March through the Board’s Multiple Listing Service® System, compared with 1,478 in March 2017, an increase of 12.3 per cent. The five-year average for March sales is 1,339. March’s sales included 358 in the condominium property class and 1,302 in the residential property class.

“Inventory continues to fall below normal average, but we are still seeing more sales than last year because listings are not staying on the market,” states Ralph Shaw, President of the Ottawa Real Estate Board. “Properties that are priced well are selling quickly with days on market dropping to an average of 43 days from an average of 54 days on market in March 2017.”

The average sale price of a residential-class property sold in March in the Ottawa area was $447,561, an increase of 8 per cent over March 2017. The average sale price for a condominium-class property was $275,592, an increase of 0.7 per cent from March 2017. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.

“The most active price point in the residential market continues to be the $300,000 to $449,999 range, accounting for 46 per cent of the market. In addition, the $500,000 to $750,000 market is a price point that is showing robust growth representing 21 per cent of the residential homes sold in March,” Shaw acknowledges.

“In the condominium market, between $175,000 and $274,999 is the most buoyant price point, accounting for 51 per cent of the market. We continue to believe it is due to low interest rates and the lack of supply of rental inventory pushing renters into the market,” he adds.

“Overall, as a result of the stable pricing in the condominium market and reasonable increases of 8 per cent in the residential market, Ottawa continues to be a healthy and vibrant real estate market,” Shaw concludes.

In addition to residential and condominium sales, OREB Members assisted clients with renting 551 properties since the beginning of the year.

Real Estate Snapshot Graphic March 2018-final

Real Estate Snapshot Graphic March 2018-final

Buyers Get a Jump on the Spring Market taken from the Ottawa Real Estate Board 
April 5, 2018

Members of the Ottawa Real Estate Board sold 1,660 residential properties in March through the Board’s Multiple Listing Service® System, compared with 1,478 in March 2017, an increase of 12.3 per cent. The five-year average for March sales is 1,339. March’s sales included 358 in the condominium property class and 1,302 in the residential property class.

“Inventory continues to fall below normal average, but we are still seeing more sales than last year because listings are not staying on the market,” states Ralph Shaw, President of the Ottawa Real Estate Board. “Properties that are priced well are selling quickly with days on market dropping to an average of 43 days from an average of 54 days on market in March 2017.”

The average sale price of a residential-class property sold in March in the Ottawa area was $447,561, an increase of 8 per cent over March 2017. The average sale price for a condominium-class property was $275,592, an increase of 0.7 per cent from March 2017. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.

“The most active price point in the residential market continues to be the $300,000 to $449,999 range, accounting for 46 per cent of the market. In addition, the $500,000 to $750,000 market is a price point that is showing robust growth representing 21 per cent of the residential homes sold in March,” Shaw acknowledges.

“In the condominium market, between $175,000 and $274,999 is the most buoyant price point, accounting for 51 per cent of the market. We continue to believe it is due to low interest rates and the lack of supply of rental inventory pushing renters into the market,” he adds.

“Overall, as a result of the stable pricing in the condominium market and reasonable increases of 8 per cent in the residential market, Ottawa continues to be a healthy and vibrant real estate market,” Shaw concludes.

In addition to residential and condominium sales, OREB Members assisted clients with renting 551 properties since the beginning of the year.

Buyers Get a Jump on the Spring Market
April 5, 2018

Members of the Ottawa Real Estate Board sold 1,660 residential properties in March through the Board’s Multiple Listing Service® System, compared with 1,478 in March 2017, an increase of 12.3 per cent. The five-year average for March sales is 1,339. March’s sales included 358 in the condominium property class and 1,302 in the residential property class.

“Inventory continues to fall below normal average, but we are still seeing more sales than last year because listings are not staying on the market,” states Ralph Shaw, President of the Ottawa Real Estate Board. “Properties that are priced well are selling quickly with days on market dropping to an average of 43 days from an average of 54 days on market in March 2017.”

The average sale price of a residential-class property sold in March in the Ottawa area was $447,561, an increase of 8 per cent over March 2017. The average sale price for a condominium-class property was $275,592, an increase of 0.7 per cent from March 2017. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.

“The most active price point in the residential market continues to be the $300,000 to $449,999 range, accounting for 46 per cent of the market. In addition, the $500,000 to $750,000 market is a price point that is showing robust growth representing 21 per cent of the residential homes sold in March,” Shaw acknowledges.

“In the condominium market, between $175,000 and $274,999 is the most buoyant price point, accounting for 51 per cent of the market. We continue to believe it is due to low interest rates and the lack of supply of rental inventory pushing renters into the market,” he adds.

“Overall, as a result of the stable pricing in the condominium market and reasonable increases of 8 per cent in the residential market, Ottawa continues to be a healthy and vibrant real estate market,” Shaw concludes.

In addition to residential and condominium sales, OREB Members assisted clients with renting 551 properties since the beginning of the year.

Buyers Toolkit – Springtime

Spring is in the air, and the real-estate market is ramping up for the beginning of buyers’ season.  Things tend to move faster in the spring and houses for sale are often sold shortly after they are listed.  As a potential home buyer, it is important to be prepared as possible before you start looking at potential homes – that way, the chance of losing your “dream home” to another buyer is greatly decreased. You may be wondering … “What are some of the important things that can help you stay on-top of, and ahead of this year’s spring market?”  Have no fear, in this toolkit we have everything you need to know, and do, to make the buying experience go smoothly for you!

Your “Tools”-What you want to be prepared with ahead of time:

Mortgage Information & Pre-approval

Find out what mortgage you qualify for, and get your mortgage pre-qualification.  By taking this step you’ll know exactly what you can afford to buy and when you’re ready to make an offer, you can be confident knowing you are staying within your financial boundaries.  A financing condition is pretty standard in an agreement of purchase and sale; after your offer is accepted by the seller the time you have to meet the conditions is best spent finalizing your financing on a specific property rather than starting the approval process.

A Realtor

Although that seems like a no-brainer, making sure you have hired the realtor who is right for you is very important when it comes to purchasing a home.  Do some research, ask questions, interview a few realtors, check online profiles and reviews.  You’ll be spending a lot of time with your real estate agent; make sure you trust them, that they’re knowledgeable and that you’re comfortable with them.  Quick and easy contact with your agent is another key piece when it comes to signing and sealing a deal.

Your List of Needs vs. Wants

Knowing what you’ll need in your future home, and things that you want (your wish-list) is one of the most important aspects when it comes to looking for a new home. Needs are things that you must have in your new home (e.g. minimum number of bedrooms, a yard for the dog, a safe neighbourhood) whereas the wants’ or your “wish-list” are things you don’t necessarily need, but you’d like to have (Example: Granite countertops).  Your “must-have” list will help you rule out homes for sale that aren’t suited for your needs rather than spending valuable time on those that don’t.  This process can also open up your search options if some of the things on your need list actually turn out to be wants.

Pro-Con List

It’s important to keep a list of the pros’ and cons’ of each property that you visit, in order to have a better recollection of the home that is best suited for your family. Remember to check small details in each home, like testing the lights, and plumbing, and make note of the neighbourhood characteristics.

Trust Your Gut

When it comes to knowing what home is the right choice for you, you can use the simple tools listed above to help make an informed decision, however the most important aspect of home-buying is knowing when to trust your gut. The spring market moves quickly, and sometimes being prepared, and trusting your instincts are the two key factors standing between you, and successfully making an offer on your future home in time. If the potential home is in your price range, and has the combination of needs and wants you desire – don’t take the time to sleep on it, or you may lose the opportunity to make an offer. Trust your intuition and keep in close contact with your realtor to have the best support and knowledge while making these decisions.

There are many different aspects that are key elements to finding the right home. Working with your realtor to negotiate for a fair price, finding the neighbourhood you’re comfortable with, and ensuring you have the right credit and down-payment for the home you’re interested in are just some of these factors. The home buying process doesn’t need to be complicated – tool kit in hand, and realtor by your side, will make this spring market a piece of cake for you.

Let us know how we can help!  Contact us info@teamrealty.ca

Landlords and Legalization: What budding weed laws may mean for Landlords

With the legalization of marijuana on the horizon, property owners of rental units are wondering what that will mean for them. As all the rules and regulations surrounding cannabis use have yet to be ironed out, it’s only natural that landlords are beginning express concern, or in some cases excitement surrounding the opportunities legalization will present.

The legalization of medical cannabis passed in 2001, but as Canada moves forward to legalize the use of cannabis across the country, there are many different views surrounding the changes. With multiple angles to consider, it’s no wonder that landlords across the country are beginning to question, challenge, and prepare for the pending legalization. What are the pro and con sides of the debate surrounding legalization for landlords, and how might rental properties be affected by the new legislation?

Firstly, one of the stipulations surrounding the new legislations is that marijuana can only be smoked in private residences. With this stipulation, there are two clear opinions stemming from landlords surrounding the pending legalisations:

  • Against – due to questions of property value, maintenance, and lack of control over their rental units
  • For legalisation – viewing legalisation as an opportunity in the rental market, as there will be a need to fill

Looking initially at those against legalization, and their concerns surrounding property values, costs of fumigation, and loss of control within their rental units, it is understandable why landlords are questioning how they will be able to control their properties once smoking weed becomes a legal right, contained to private residences. Much like how many landlords have clauses surrounding not allowing pets within their units, it is likely that there will be a surge in rental units that are anti-weed smoking, meaning that tenants are not permitted to smoke weed in these units. Although it is a tricky situation to regulate, as smoking weed is going to be a legal right, it is possible to see landlords increasing their rents, and tightening up conditions of leases in order to accommodate the new legislation and the costs that could be ensued. In the same way that landlords try and regulate the type and number of pets permitted in each unit, it is possible that they will attempt to make these same regulations surrounding marijuana in order to protect their property from damages, the need to fumigate, and to ensure the well being and happiness of al their tenants. A potential surge in rent increases could lead renters to be searching for weed-friendly apartments, (much like pet-friendly apartments), which could see a rise in vacancies in some places, along with some renters seeking out the option to purchase a private residence in order to enjoy their space freely, and as they see fit.

On the other hand, some landlords are viewing this new legislation as an opportunity to take advantage of what will be a need in the market, much like those who take advantage of the need/want for pet-friendly rental options. The legalisation of marijuana opens a new need in the rental market for properties that will allow tenants to smoke, and grow their plants hassle free. With this opportunity, landlords can specialize their units with these new stipulations in mind, allowing those who wish to be able to smoke without hassle to find living arrangements that are both suitable, and enjoyable to them. With some landlords pushing to ban cannabis smoking in rental units, it is possible that cannabis users could end up with no where left to go, unless units like these exist. Although they may see a slight increase in the cost of renting these units, the ability to partake in cannabis use without issue is attractive to those seeking to exercise their legal rights. Much like those individuals who look specifically for rental units that allow pets, these tenants may result in fewer vacancies and longer tenancies, as the accommodations will be difficult to find with many landlords being against the new stipulations. Although the desire to smoke and grow cannabis would not be a requirement to live in a rental unit such as this, new tenants would have to be okay with the fact that the building does allow tenants to partake in their legal right, and therefore would minimize possible complaints surrounding smoke and pot smell. Although there is much to still be decided and ironed out in terms of details on these types of rental properties, it is certain to be a wise investment and a new opportunity to take advantage of within the market.

The new legislation is a topic of discussion all around, surrounding use, growth, and ability to purchase marijuana, and it’s regulation. Landlords are preparing themselves for the coming changes, whether they are pro, or con, in terms of the new legislation and how their properties may change for existing and new tenants. It is possible there will be a rise in tenants seeking out marijuana friendly rental units, willing to pay premium prices for personal privacy and their ability to smoke hassle free.

Wanted: Ottawa Homes For Sale


When the calendar rolled over into 2018 many real estate experts across Canada were speculating the housing market to “cool off” with  tighter mortgage rules and higher interest rates impacting home buyers.  While that may be the case in other real estate markets,  in the Ottawa Real Estate market the biggest factor in February’s 2.8% drop in the number of sales (year over year), is that listing inventory is scarce.

“There is no doubt our sales number would have been much higher if we had more properties available for sale.  Buyer demand is there, but our inventory in both residential class and condos continues to decline.  This is creating a supply side issue in the Ottawa real estate market”

  -Ralph Shaw, OREB President

The Ottawa Real Estate board’s recently released statistics show that home buyers are still actively searching for properties  in spite of the low inventory, which is a trend that is continuing from 2017.  F If the decrease in supply in both the residential and condo markets continues into the Spring,  it may put an upward pressure on prices.  If you are thinking of selling this is a great time to get your home on the market.

Below we’ve included the latest news release from the Ottawa Real Estate Board.   Please note: average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.  We have access to current statistics and trends in our neighbourhoods and communities, it’s our job to stay on top of the market trends!  We have up to date Real Estate Market Reports readily available for you and we love to chat real estate – contact us anytime!

DRAFT real estate snapshot February 2018

News Release Below:  March 5, 2018 Posted by the Ottawa Real Estate Board

Members of the Ottawa Real Estate Board sold 979 residential properties in February through the Board’s Multiple Listing Service® System, compared with 1,002 in February 2017, a decrease of 2.3 per cent. The five-year average for February sales is 922. February’s sales included 250 in the condominium property class and 729 in the residential property class.

“There is no doubt our sales numbers would have been much higher if we had more properties available for sale. Buyer demand is there, but our inventory in both residential-class and condos continues to decline. This is creating a supply side issue in the Ottawa real estate market,” concludes Ottawa Real Estate Board President, Ralph Shaw. “If this trend continues, the market will move to favour sellers, and buyers will find themselves competing for a limited number of listings.”

“Compounding the supply issue is the fact that after a record year last year, new construction is hindered getting to market because builders just cannot find enough land as a result of the urban boundary and land prices going up,” Shaw points out. “Given this environment, it’s a good opportunity for Sellers to get their property on the market,” he advises.

The average sale price of a residential-class property sold in February in the Ottawa area was $429,600, an increase of 2.7 per cent over February 2017. The average sale price for a condominium-class property was $273,174, an increase of 5.6 per cent from February 2017. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.

“The most active price point in the residential market continues to be the $300,000 to $449,999 range, accounting for 47 per cent of the market. While the most active price point in the condo market, between $150,000 and $249,999, accounts for 56 per cent of the market,” Shaw notes.

“The reality is that condo sales are driving the number of properties sold at the moment. Due to demand, the condo market is experiencing some price recovery. Units in the lower price points of the condo market are likely moving rapidly because of the limited supply in the rental market which is yet another factor at play. The lack of availability is essentially forcing renters into condo ownership,” he explains.

“Ottawa is beginning to experience similar indicators that have ultimately led to challenging real estate markets in our larger metropolitan cities. It starts with supply shortages which eventually lead to affordability issues. The city in particular needs to have an intelligent vision about how to support and stimulate all aspects of the market from new construction through to the rental market availability,” Shaw elaborates.

“With this being a civic election year, we look forward to talking with our council and mayoral candidates about what measures need to be taken now to support affordability, before we develop the supply challenges of Toronto or Vancouver,” he cautions.

In addition to residential and condominium sales, OREB Members assisted clients with renting 348 properties since the beginning of the year.

New Mortgage Rules – Renewing and Refinancing

January 1st, 2018 Canada’s new mortgage rules came into effect and it was big news. These new rules appear to have the greatest impact on those looking to qualify for a new mortgage but if you are looking to renew or refinance your mortgage, you may be impacted as well. At the centre of the new rules is a stress test requiring applicants to qualify at a rate at least 2% higher than the rate they will be paying, regardless of the down payment they are making on the home. The new rules may limit your options but rest assured, you will not lose your mortgage over these changes.

Mortgage Renewals

If your mortgage is up for renewal, lenders do not need to apply the stress test to renew an existing mortgage. This means that as long as you stay with the same lender and don’t change any of the terms of your mortgage, you will have no problems. But, if you want to shop around for the best rate, you will need to pass the stress test with any other financial institution. This may limit your options and may force some Canadians to accept a higher or uncompetitive rate if they are unable to pass the stress test.

Mortgage Refinancing

If you are planning on refinancing your mortgage, even if it is with the same lender, you will need to qualify at the higher stress test rates. This will affect Canadians who are looking to borrow money against their homes for renovations or repairs. If you are looking to refinance, you will have to qualify for the new loan at a rate that is 2% higher than your existing rate. This may mean that some Canadians may have to settle for a smaller loan or forego plans altogether.

Take Aways

The most important thing to remember not to panic, you will not lose your home over these new rules.  Many Canadians will be able to pass the stress test for renewals and refinancing, but in any case as long as you stay with your existing lender, you will remain approved for the entire term of the mortgage.  To better understand how these changes may affect you, it is always advisable to speak to your mortgage broker or bank well before your renewal date;  it is best to understand your options in advance.

If you are looking to buy a home in 2018,  especially in the Ottawa real estate market,  getting your financing in order before you start serious house hunting, is increasingly important.  It will help you act quickly and with confidence when you find your dream home!  Let us know how we can help!

The Ottawa Real Estate board’s recently released statistics show that home buyers are still actively searching for properties.   Sales were up over 7% (year over year) in spite of the low inventory, which is a trend that is continuing from 2017.  January 2018 listings 994 (RES) and 406 (CONDO) compared with the 5 year 1,396 for residential and 500 for condominiums.   If the decrease in supply in both the residential and condo markets continues into the Spring,  it may put an upward pressure on prices.  If you are thinking of selling this is a great time to get your home on the market.

Below we’ve included the latest news release from the Ottawa Real Estate Board.   Please note: average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.  We have access to current statistics and trends in our neighbourhoods and communities, it’s our job to stay on top of the market trends!  We have up to date Real Estate Market Reports readily available for you and we love to chat real estate – contact us anytime!

real estate snapshot January 2018

News release from the Ottawa Real Estate Board  OTTAWA, Feb. 5, 2018

Members of the Ottawa Real Estate Board sold 712 residential properties in January through the Board’s Multiple Listing Service® System, compared with 664 in January 2017, an increase of 7.2 per cent. The five-year average for January sales is 638. “While January is typically the month we see the lowest number of listings come onto the market, the numbers for this month are very low,” Rick Eisert, 2017 President of the Ottawa Real Estate Board, observes.

“The five-year average for new listings in January is 1,396 for residential and 500 for condominiums. January 2018’s listings were at 994 and 406 respectively.” “We saw this trend throughout 2017, and the result is our resale market is being challenged by decreasing supply in both the residential and condo markets. Furthermore, as the supply continues to be reduced, it will tend to put an upward pressure on prices. This is simple supply and demand economics,” he adds.

The average sale price of a residential class property sold in January in the Ottawa area was $427,487, an increase of 8.8 per cent over January 2017. The average sale price for a condominium-class property was $263,744, a decrease of 8.6 per cent from January 2017. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood. January’s sales included 173 in the condominium property class and 539 in the residential property class.

“Sales in the residential property class this month were on par with January 2017 with a minor decrease of 1.1 per cent. Unit sales in the condo market, however, have seen an increase of 45 per cent from 119 units sold in January 2017 to 173 units in January 2018,” Eisert explains. “The most active price point in the residential market is the $300,000 to $449,999 range, accounting for 47.5 per cent of the market. While the most active price point in the condo market, between $150,000 and $249,999, accounts for 55 per cent of the market,” states Eisert. “There is a marked increase in the number of condo units sold in the lower end of the market specifically. This is likely due to the attractive lower price point and the fact that the demand is there.”

“For homeowners thinking of selling, this is a good time to get your property on the market before spring,” Eisert advises. “Since inventory is currently low, sellers will certainly get attention because selection for buyers in some areas, in particular, is quite limited.” In addition to residential and condominium sales, OREB Members assisted clients with renting 166 properties since the beginning of the year.

An Era of Change: 2018 Ottawa Real Estate trends 2018 an era of change

Canadian real estate is in an era of change.  2017 closed with a bang, as we saw some of the largest increases in real estate prices in nearly a decade. The curiosity now turns to 2018, and what can we expect to see in Ottawa, and across Canada.

Ottawa is climbing the list as a hot spot for home buyers this year, joining popular cities like Toronto, Montreal and Vancouver.  Ottawa may hold an even higher interest for buyers, where real estate prices are significantly lower than areas such as Toronto and Vancouver. The pool of potential home buyers shows a steady increase  by individuals able to work remotely  who are not limited by commute time when choosing where to buy a home.  This growth trend is expected to continue throughout 2018. With a variety in communities, opportunities, and availability, the Ottawa area has a lot to offer to potential buyers. Whether they’re looking for a quiet home in the suburbs of Kanata or Barrhaven, a property in one of the many smaller communities within a 30 minute drive (Carleton Place, Arnprior, Manotick, Stittsville, Carp, just to name a few) or condo in the Byward Market, Westboro, Centretown, or the Glebe;  Ottawa creates new opportunities for growth and change.

Experts are predicting that real estate markets in Quebec, Alberta, and British Columbia will likely see a solid year of increase, while the market in Atlantic Canada will remain stable and subdued. As the changes to mortgage rules came into effect January 1, 2018, we will likely begin see a shift in the pace of the market here in the Ottawa real estate market, and across the country.  While impact of the regulations will not go unnoticed, Ottawa prices are expected to rise, albeit at a slower pace compared to 2017.  Experts predict a less than a 10% increase in the value of homes this year; protecting home owner’s equity, while giving home buyers an opportunity to find affordable housing in and around the nation’s capital.

2017 was dubbed the “the Year of the Condo”  as many real estate markets across Canada saw a significant boost in condominium sales; we may continue to see a shift from large homes, to smaller living spaces. Condominiums will be 2018’s hot trend, experts say, driven by millennials entering the real estate market and by baby-boomers downsizing.  Ottawa offers a variety of prospects in this regard, with the focus shifting to “life-style”, not just what’s behind the front door.   As interest in these smaller living spaces grows, we’re seeing more buyers searching for the “right fit”, as their community becomes an important extension of their home.

This factor gives Ottawa an advantage across the city, with its’ diverse and ever-growing communities.  Almost every community across the city holds its’ own unique possibilities, and people, while the vast availability ensures that everyone can find a place to call home.  Reach out to us at info@teamrealty.ca for detailed market statistics, neighhourhood trends and information about what 2018 will hold for home buyers and sellers alike.  Check in with your Realtor, your dream home may be just around the corner!


2017 was quite a year in the Ottawa Real Estate market; record breaking numbers in units sold (condominium sales up over 22%) and double digit (percentage) increases in average sale price in several neighbourhoods, Canada 150 (or should we say Ottawa 150?!) was anything but average!

Below we’ve included the latest news release from the Ottawa Real Estate Board.   Please note: average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.  We have access to current statistics and trends in our neighbourhoods and communities, it’s our job to stay on top of the market trends!  We have up to date Real Estate Market Reports readily available for you and we love to chat real estate – contact us anytime!

Ottawa Housing market update Ottawa Citizen

December 2017 Ottawa Real Estate Market snapshot graphic FINAL

From the Ottawa Real Estate Board: January 4th, 2018 

Members of the Ottawa Real Estate Board sold 771 residential properties in December through the Board’s Multiple Listing Service® System, compared with 711 in December 2016, an increase of 8.4 per cent. The five-year average for December sales is 687.

December’s sales included 205 in the condominium property class and 566 in the residential property class. The average sale price of a residential-class property sold in December was $434,098, an increase of 3.4 per cent over December 2016. The average sale price for a condominium-class property was $255,335, a decrease of three per cent from December 2016.

“December saw an increase of 8.4 per cent in the number of units sold in residential sales and 25 per cent in condo sales. This could very well be attributed to the changes in the mortgage qualification rules implemented January 1, 2018,” speculates Ralph Shaw, 2018 President of the Ottawa Real Estate Board.

“2017 was another solid year for the Ottawa Real Estate market in both the number of transactions as well as the reasonable increase in prices, about seven per cent in residential and three per cent in the condo market,” Shaw acknowledges. “We continue to have a stable and balanced market. Although inventory tracked low all year and new listings were down each month, new home supply counteracted the impact somewhat.”

The total number of residential and condo units sold through the Board’s MLS® System throughout all of 2017 was 17,083, compared with 15,526 in 2016, an increase of ten per cent. Overall, residential sales volume was up 16 per cent.

“In 2017, the condo market rebounded with a 22 per cent increase in the number of units sold, which is quite significant. The relatively flat increase in prices suggests that we found the ideal price point in which to move the units,” Shaw concludes. “As for residential sales, there was a good availability of product under $500,000 considering almost 10,000 out of approximately 13,500 residential units sold fell in that range.”

2017’s average residential sale price was $425,063, an increase of 6.8 per cent over 2016, while the average condominium sale price was $269,903, an increase of 3.4 per cent over 2016. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

Read more…

It’s hard to believe November is over but here we are!  If you’ve been following Ottawa real estate you’ll know it’s been a busy 2017 and December will likely be no exception.  With the new mortgage rules coming into play in a few short weeks, many buyers are motivated to have firm deals completed before January 1st, 2017.

We’ve included the latest news release from the Ottawa Real Estate Board below.  Please note: average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.  We have access to current statistics and trends in our neighbourhoods and communities, it’s our job to stay on top of the market trends!  We have up to date Real Estate Market Reports readily available for you and we love to chat real estate – contact us anytime!

Ottawa Real Estate Stats graph from oreb

Ottawa Real Estate Overall Stats and highlights

Ottawa Real Estate Update | Latest News and Highlights in the Ottawa and Area Real Estate Market

OTTAWA, Dec. 5, 2017 – Members of the Ottawa Real Estate Board sold 1,239 residential properties in November through the Board’s Multiple Listing Service® System compared with 992 in November 2016, an increase of 24.9 per cent. The five-year average for November sales is 1,001.

“November numbers are upholding the robust year we have been experiencing in the real estate market in 2017,” Rick Eisert, President of the Ottawa Real Estate Boards states. “Both residential sales and condo sales continue to steadily increase.”

November’s sales included 294 in the condominium property class and 945 in the residential property class. “This is not surprising though,” Eisert remarks.

“The Office of the Superintendent of Financial Institution’s (OSFI) announcement regarding the new stress tests for low- ratio borrowers may have buyers rushing into the market before the stricter mortgage regulations come into play in January 2018. If this keeps up, I expect December could be a busier than usual holiday season for REALTORS®.”

The average sale price of a residential class property sold in November in the Ottawa area was $418,354, an increase of 3.2 per cent over November 2016. The average sale price for a condominium-class property was $257,212, a decrease of 7.6 per cent over November 2016. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.

“It is crucial in a market that is moving quickly, such as the one we are experiencing, to ensure you are pricing your property correctly. Having the guidance and market knowledge of a REALTOR® is essential for home buyers and home sellers,”

suggests Eisert. “The most active price point in the residential market is the $300,000 to $450,000 range, accounting for 46 per cent of the market. While the most active price point in the condo market, between $150,000 and $275,000, accounts for 66 per cent of the market,” says Eisert. “In addition to residential and Condominium sales, OREB Members assisted clients with renting 2,821 properties since the beginning of the year.”

It’s hard to believe November is over but here we are!  If you’ve been following Ottawa real estate you’ll know it’s been a busy 2017 and December will likely be no exception.  With the new mortgage rules coming into play in a few short weeks, many buyers are motivated to have firm deals completed before January 1st, 2017.

We’ve included the latest news release from the Ottawa Real Estate Board below.  Please note: average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.  We have access to current statistics and trends in our neighbourhoods and communities, it’s our job to stay on top of the market trends!  We have up to date Real Estate Market Reports readily available for you and we love to chat real estate – contact us anytime!

Market Snapshot-November 2017-DRAFT

Ottawa Real Estate Update | Latest News and Highlights in the Ottawa and Area Real Estate Market

OTTAWA, Dec. 5, 2017 – Members of the Ottawa Real Estate Board sold 1,239 residential properties in November through the Board’s Multiple Listing Service® System compared with 992 in November 2016, an increase of 24.9 per cent. The five-year average for November sales is 1,001.

“November numbers are upholding the robust year we have been experiencing in the real estate market in 2017,” Rick Eisert, President of the Ottawa Real Estate Boards states. “Both residential sales and condo sales continue to steadily increase.”

November’s sales included 294 in the condominium property class and 945 in the residential property class. “This is not surprising though,” Eisert remarks.

“The Office of the Superintendent of Financial Institution’s (OSFI) announcement regarding the new stress tests for low- ratio borrowers may have buyers rushing into the market before the stricter mortgage regulations come into play in January 2018. If this keeps up, I expect December could be a busier than usual holiday season for REALTORS®.”

The average sale price of a residential class property sold in November in the Ottawa area was $418,354, an increase of 3.2 per cent over November 2016. The average sale price for a condominium-class property was $257,212, a decrease of 7.6 per cent over November 2016. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.

“It is crucial in a market that is moving quickly, such as the one we are experiencing, to ensure you are pricing your property correctly. Having the guidance and market knowledge of a REALTOR® is essential for home buyers and home sellers,”

suggests Eisert. “The most active price point in the residential market is the $300,000 to $450,000 range, accounting for 46 per cent of the market. While the most active price point in the condo market, between $150,000 and $275,000, accounts for 66 per cent of the market,” says Eisert. “In addition to residential and Condominium sales, OREB Members assisted clients with renting 2,821 properties since the beginning of the year.”

What home buyers need to know before 2018

As of January 1, 2018, Canadian homebuyers will have to meet stiffer requirements in order to qualify for a mortgage with a federally regulated mortgage lender.

Why are the Mortgage Rules changing?

  • As Canada’s financial “watchdog” OSFI believes these new rules will decrease the risks for Canadian households with significant debt if and when the interest rates rise.

Are you a Confused by the upcoming changes to the mortgage rules? Don’t panic.

Our very own Kent Browne, Owner and Broker at Royal LePage Team Realty, sat down with Mortgage Broker York Polk  of Mortgage Alliance to discuss all these changes in order to help you, our clients, understand how they may affect you.

Here are the highlights:

Changes that came into effect November 30, 2016 and still apply:

  • All buyers having a down payment of less than 20% are required to pass a “Stress Test”* to obtain a mortgage.
  • To pass the stress test, buyers with a payment of less than 20% need to qualify at a higher rate (4.64% at the time) even though the contract rate is much lower (2.3% at the time).

Changes starting January 1, 2018

  • When OSFI’s new rules take effect – even those who have down payments of 20% or higher and do not require mortgage insurance – will also have to undergo a “Stress Test”.   Home buyers will need to qualify for mortgages that are two percentage points higher than the rates at which they are applying.
  • The qualifying rate for the “Stress Test” would be the greater of either 2% higher than the contract rate or the Bank of Canada rate (currently at 4.99%).

The contract rate remains unaffected.

If you’re a prospective home buyer concerned about how the new mortgage rules will impact your buying power, here are a few tips:

  • If you are thinking about buying a home, seriously consider buying now. Any firm agreement of purchase and sale on a specific property that has been completed and signed off on will follow the old rules, regardless of the closing date.  Note, if you need to make any changes to the agreement after January 1st, you will need to qualify within the new rules.
  • Conventional mortgages can be stretched over up to 30 years and by doing so, it will be easier to qualify at this time.
  • While home buyers should always get pre-approved, this will not protect you from needing to qualify under the new rules if you are unable to purchase a property before 2018.

Contact your Realtor  and a professional mortgage broker now to ensure that there are no surprises when it comes time to buy a home.  Questions? We’d love to help! Contact us info@teamrealty.ca.

* Stress testing is a best practice risk management tool. Stress tests are not predictions or forecasts­, they involve searching out extreme “what if” scenarios that have a very remote chance of happening, and planning for them.

Diligent stress testing is an essential part of CMHC’s risk management program and allows CMHC to evaluate its capital levels against multiple scenarios. Effectively, they confirm if CMHC’s capital holdings are sufficient for even the most extreme scenarios.

Stress tests are used by financial institutions to gauge how their business would fare under extremely difficult conditions. They provide a formalized mechanism for companies to look at risks and to assess the impact of the different extreme events. This information is from the CMCH article found here.