From the blog...

OTTAWA MARKET UPDATE: MAY 2020

Posted on: June 12th, 2020 by Chris Scott

What a strange year it has been so far. I hope everyone is doing well. With the economy starting to open up and the cases of new infections decreasing things are finally starting to head in the right direction. This might be welcome news for home buyers as they await new inventory from reluctant sellers. Many sellers have not wanted anyone coming through their home during the pandemic. In the weeks ahead we should see a spike in new listings. With the demand out there and supply shortage, it couldn’t come soon enough!

Sales in May were down 44% in Ottawa compared with the same month last year. The shortage of homes for sale in Ottawa did put upward pressure on prices. You have more buyers competing for fewer homes. Prices peaked up 11.2 over May of 2019.

The CMHC forecast for Canada house prices seemed bleak as it called for some declines across the country. Ottawa is one of the only markets that is still red hot. With interest rates now below 2% on a fixed rate the chances of this continuing are likely. Here is what our board President said about the current state of the Ottawa Real Estate market:

“with our region’s stable employment and a continuous influx of newcomers, homeowners can take comfort in the knowledge that owning a property in Ottawa and its surrounding areas is a solid investment for yourselves and future generations,”

CMHC insurance did release some new guidelines on their lending policies. This may impact some buyers and what they will be able to afford.

In a move hailed by CMHC as a method to “protect future home buyers and reduce risk”, they have announced the following changes to their underwriting criteria effective July 1, 2020. There are four main changes to CMHC’s lending policies with this announcement:

Reducing the maximum gross debt ratio (GDS) from 39 to 35.
Reducing the maximum total debt service ratio (TDS) from 44 to 42.
The minimum credit score increases from 600 to 680 for at least one borrower on the mortgage.
Non-traditional sources of down payment (i.e. borrowed from a line of credit or credit card) will not be treated as equity for insurance purposes.

The changes above apply to home buyers that are purchasing a home with less than 20% down payment where the default insurance is provided by CMHC. Based on recent previous mortgage changes, we expect that the July 1st deadline will mean those home buyers must have a firm purchase and sale agreement on a specific property and a fully committed mortgage approval by that date to be eligible under the “old” rules. This is unconfirmed at this time.

The combined increase of the GDS and TDS ratios represent a 9%-13% decrease in purchasing power for those with less than 20% down payment.

If you are curious about what is happening in your area please feel free to get in touch. We are always happy to be of service.

    
 
 
        
   Anny Metivier 
 2024-08-13
 
 
  Over the years, with multiple military moves, we’ve had the opportunity to work with many real estate agents, and we can confidently say that not all are created equal. Chris, by far, has been the most trustworthy and easiest real estate agent we’ve had the pleasure to work with.
  
 
       
   Jake Moffat 
 2024-06-07
 
 
  Colin has been the best realtor to work with and helped us buy a great house in the perfect neighborhood. Colin and the rest of the team at Chris Scott were incredibly helpful the whole way and always available to answer questions, show us houses at a time that was convenient for us and were just generally professional and friendly during the whole process. We will recommend Colin and the team to our friends and family.
  
 
       
   Faith Woodley 
 2024-03-13
 
 
  I was a co-Executrix of an estate, and we had a condo that we had to sell for the estate.  In order to get the property ready for sale, we had to have the over 5,000 square foot condo painted and the carpets replaced.  Since the property was empty, Chris recommended a home stager that he uses on properties that require these services, and she did a fantastic job of staging the condo. It took the condo to the next level. The condo sold for a phenomenal price, and we were very happy with Chris Scott and his abilities.  He always gives over 100 percent to get the job done!  I recommend him to anyone that requires the services of a great real estate agent.
  
 
       
   Emily Bozanich 
 2023-10-07
 
 
  We worked with Rachel and she was beyond diligent. She is so organised and meticulous with details, it really helps when buying a home. She even agreed to do a virtual walk through for the home we ended up buying because we weren’t going to get there ourselves prior to offers being reviewed. She was also great with recommending areas to consider and avoid. Highly recommend.
  
 
       
   Cy Dixon 
 2023-10-06
 
 
  Rachel was amazing. She helped me find the perfect home for me and my son during a challenging time in my life. She was extremely patient and empathetic, professional and knowledgeable. I highly recommend her. No one will work harder for you than Rachel.
  
 
       
   Jeff C 
 2023-10-06
 
 
  Awesome realtor team very helpful and knowledgeable
  
 
       
   Nathalie Groupe Godin 
 2023-10-06
 
 
  Great service. Very knowledgeable. Super helpful. I’d use this team again.
  
 
       
   D Hynders 
 2023-10-05
 
 
  I recently used Chris' team to purchase a new house and I have to say that it was a pleasure to work with them.
  
 
       
   Megan Bixby 
 2023-10-05
 
 
  My husband and I purchased a house in the surrounding Ottawa area with the assistance of Colin from this group of individuals. We unfortunately were left with no choice but to purchase a home sight unseen due to our work circumstances. We originally considered not purchasing because of this.
We deliberated and chose to purchase a home after participating in FaceTime showings and we could not have been more satisfied. Colin was objective, professional, calm, informative, and realistic. He listened to our needs and helped us choose our home. The fact that we were pleasantly surprised, and a year later remain pleased as punch, says everything about how talented this company is. Will, without a doubt, use this company when we leave Ottawa.
  
 
       
   André Desjardins 
 2023-10-04
 
 
  We worked with Chris to find a home back in 2011 that would suit our desire to be close to work. He was nothing but professional and courteous! Listening to our needs and showing us what we were looking for. Years later, when we thought about down sizing and finding a renovated home, he took us around to see some in the neighborhood. He always open to helping us out in our searches

From the blog...

OTTAWA MARKET UPDATE: MAY 2020

Leave a Reply