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Posted on: November 10th, 2016 by Chris Scott
Members of the Ottawa Real Estate Board sold 1,214 residential properties in October through the Board’s Multiple Listing Service® System, compared with 1,159 in October 2015, an increase of 4.7 per cent. The five-year average for October sales is 1,130. This is the third straight months of record-breaking resales.
Residential sales are identical to that of October 2015, but condo sales have soared – up by 27.2 per cent over last year. This may be due to lower inventory levels combined with adjusting prices. It’s too early to tell what kind of impact the new mortgage rules will have on the Ottawa market going forward. We know that right now Ottawa continues to be a desirable city to live and work, and consumer confidence and job growth remain positive.
The average sale price of a residential-class property sold in October in the Ottawa area was $392,579 an increase of 3.3 per cent over October 2015. The average sale price for a condominium-class property was $251,465, an increase of .01 per cent over October 2015.
Since every area is slightly different, if you are thinking of buying or selling I hope you will contact me. I’m always happy to help!
– Chris Scott
Posted on: October 11th, 2016 by Chris Scott
Another month with records broken for residential and condo units sold – 200 more units sold than the 5-year average for September sales.
Members of the Ottawa Real Estate Board sold 1,371 residential properties through the Board’s Multiple Listing Service® System, compared with 1,241 in September 2015 – an increase of 10.5%.
With fewer listings coming onto the market and recent higher unit sales, overall inventory is decreasing. We will watch with interest to see that happens with the basic economics of supply and demand at play.
The average sale price of a residential class property sold in September in the Ottawa area was $383,793 – a decrease of 0.1% over September 2015. The average sale price for a condominium class property was $252,136, a decrease of 2% over September 2015.
The hottest segments in our market continue to be 2-storey and bungalow residential homes in the $300,000 – $400,000 range.
Since every area is different, I hope you will call on me if you are planning to buy or sell. And – don’t forget those referrals – they are very important for the success of my business.
Chris
Posted on: October 11th, 2016 by Chris Scott
The Federal Government is taking steps to ease emerging risks in the country’s housing market. The new measures should slow the injection of foreign cash and will tighten the eligibility rules for prospective borrowers. The sizzling Toronto and Vancouver markets are out of reach for many Canadians and some fear that foreign investment money in these markets has helped drive up prices. There is also growing concern that Canadians have too much debt.
Beginning on October 17, 2016, all insured mortgages will have to undergo a stress test to determine whether a borrower could still manage to make his/her mortgage payments if the rates went up or their income went down. Currently the test will be to ensure all insured borrowers can qualify based on the posted rate for a 5-year rate mortgage (now 4.64%).
On November 30, 2016, several eligibility rules will tighten on mortgages where borrowers made down payments of at least 20% of the purchase price.
The Government plans to tighten a loophole on an exemption that allows homeowners to avoid paying capital gains on tax on the sale of a principal residence such that this exemption will only be available, going forward, for Canadian residents and families will only be allowed to designate one home as their primary residence.
Other key measures that will affect all insured mortgages is a maximum amortization of 25 years, a maximum purchase price below $1 million, only owner-occupied properties being eligible and a total debt service ratio of 44% at the time a loan is approved.
Experts believe these measures will serve as a “tap on the brake” that could lead to a “slight, additional slowing of a market that is already slowing”.
New consumers unable to meet these requirements could be shut out of the market and even consumers with existing mortgages might be unable to easily switch lenders. It remains to be seen whether the changes will have a cooling effect on hot housing markets or how much more difficult it will be for would-be homeowners to secure mortgages.
If you have any questions about this – or anything else related to real estate, please give me a call.
Chris
Posted on: September 24th, 2016 by Chris Scott
It’s hard to believe we got off to a quiet start this year. The market has been so hot as of late. We have had some record-breaking months in units sold. August was another hot month. There were 1484 homes sold in August – a 16.4% increase over the same month last year. This represents the best August on record for the Ottawa Real Estate Board.
The average price of a residential property is up 2.5% compared to August of last year. For August we were at $389,786.
Condos made a big jump last month compared to August of last year. Condo prices are up 11%. The average price of a condo in Ottawa for August was $262,166.
These stats are monthly. This past month there were more than usual 1 million+ homes sold which could account for some of these increases.
It is an interesting market. On the one hand you have all of these positive statistics and then I look at the average time on market. The average home is taking 92 days to sell. That is up 34% from August last year. For condos it is taking even longer to sell at 106 days on market – up 12%.
There is more competition on the market right now. Lots of inventory with builders – especially downtown condos. I predict a strong finish to the year.
By the way – Ottawa was just named the 2nd best city in Canada to raise a family!
Chris
Posted on: September 12th, 2016 by Chris Scott
This has been the best August on record EVER for Ottawa Real Estate Board members, blowing the average for August sales out of the water. There were 1,484 residential properties sold in August through the Board’s Multiple Listing Service ® compared with 1,276 in August 2015 – an increase of 16.3%. The five-year average for August sales is 1,265.
Average sale prices have been steady all year. The average sale price of a residential class property sold in August in the Ottawa area was $389,786 – an increase of 2.5% over August, 2015. The average sale price for a condominium-class property was $272,166 – an increase of 11.1% over August, 2015. Six more properties in the $1 million+ range were sold last month which could account for the bump in average sale prices.
Since each area is slightly different, I hope you will call on me if you are thinking of buying or selling. I am always happy to help.
Chris
Posted on: August 24th, 2016 by Chris Scott
One of the toughest choices facing Ottawa Buyers is exactly where to live. The city extends (on both sides of the Greenbelt) to the east, west and south of the downtown core. Figuring out what your target neighbourhood is can be a daunting task – especially if you are relocating to Ottawa.
Schools and distance to work will play a significant role in your decision. Your wish list will also play a role – how much yard do you want, how much house do you want, how big is your budget, etc. The further out you go from the city’s core you go the further your money will go. That’s why suburban areas like Orleans, Stittsville, Barrhaven and Kanata are becoming so popular.
Your lifestyle is also an important factor – do you want to be close to restaurants, pubs, shopping, or have the ability to bike or walk to work.
For many people they are willing to pay more to have the Urban lifestyle. There are lots of factors to consider for sure.
If you need help figuring out what neighbourhoods are right for you, feel free to get in touch. I am always happy to help.
Chris
Posted on: August 10th, 2016 by Chris Scott
I want to share this article from the Toronto Sun with you – it clearly spells out how real estate commissions work.
The real estate industry operates on being paid only upon a successful result. This means that if your property does not sell or close, you do not pay.
The fact that the fees associated with real estate are based on this contingency is good for consumers. But does this mean that a successful seller pays for the collective work done by real estate agents in all of those unsuccessful transactions? This may be a reason why fees have hovered around 5% for some time now, even as house prices have escalated tremendously over the past 20 years. I guess the real question is what is a fair fee to pay for a successful real estate transaction and how does it all work in paying for the services of both the sellers’ agent and the buyers’ agent?
To put it all in perspective, a lawyer might charge upwards of $1,000 per hour for their services, and where half of the lawyers lose half of the time also happily will take contingency cases on a 30-50 per cent basis. In comparison, the real estate industry offers better value by charging only on success. But how it all works is tricky and requires some understanding.
Once you have chosen a real estate agent to sell your home, they present you with a listing agreement which is probably a Multiple Listing Sale (MLS) and you have to agree on a fee for their services. This is not only for what they will do for you, as it also includes the amount that you will be offering to the buyers’ agent for participating in the transaction. Let’s start here as all buyers’ agents are paid by the seller through their listing agent upon a sale. This means that once the deal closes and the seller gets their money, both agents get paid.
The commission offered to the buyers’ agent is publicly disclosed on the MLS listing, and this is a key incentive to buyer agents. If your listing offers 3% to the buyers’ agent, this is going to be more positively viewed by them than if you are offering 2.5% or less. You should offer a commission that is consistent with what’s being offered in your area. For comparison, ask your listing agent to show you all of the broker full listings, as this is where the commission rates are fully disclosed to the real estate industry. My advice is that if all of the competitive neighbourhood listings are offering 2.5% to the buyers’ agents, you should consider offering the same amount or possibly more for your listing to stand out stronger to the agents compared to the other listings being offered for sale.
This takes care of the buyer agent; however, in most cases, the sellers’ agent is doing more of the work. They should have the incentive to try and earn an amount equal to what’s being paid to the buyers’ agent.
Have a candid discussion with your agent to confirm all of the things that they are including in their package of real estate services: MLS listing, sign on the property, advertising, floor plans,
photographs, video tour, drone photography, full colour brochure, pre-home inspection, etc. Go over everything that they propose to do and the costs (to you as well as to them), then discuss and decide on a fair fee.
What if your agent double-ends the property without the help of a buyers’ agent? Should the overall fee be reduced? This is difficult to do if there are competing offers as your agent is required to make disclosures about this and can alienate the buyers’ agents who are participating in the multiple offer bidding at the time.
Good real estate agents provide excellent and fulsome services that are varied and unique. The ones who deliver you a successful transaction with no problems deserve to earn a fair fee, which may not be the lowest. I always say that you get what you pay for. Make sure that everything is crystal clear from the outset on the total cost of their services to you, as well as what is included and what is not. Consider, as well, that the fees are subject to HST.
Remember: the buyer is really paying the cost of the fees, which are built into your asking price. Allow your agent to be properly incented to do the best job that they can. Let them show their mettle by pushing the buyer to a price that gets you the net that you want!
Stephen Moranis, B.Comm., MBA, FRI, CMR has been active in the North American Real Estate Industry for more than 40 years. He is a former President of the Toronto Real Estate Board and a former Director of the Canadian Real Estate Association.
Toronto Sun, July 2016
Posted on: August 10th, 2016 by Chris Scott
Summer resales sizzle in a hot July
The hot summer continues – both in weather and real estate! Sales continue to outpace 2015 numbers in both monthly and year-to-date comparisons. Members of the Ottawa Real Estate Board sold 1,491 residential properties in July through the Board’s Multiple Listing Service® System, compared with 1,430 in July 2015, an increase of 4.3 per cent. The five-year average for July sales is 1,413.
Things have slowed down slightly from the record-breaking June numbers, but this is typical in the summer. Units listed in both residential and condominium property classes have declined throughout the year, which has affected overall inventory levels. The number of active listings at the end of July 2016 is down about 15 per cent compared to July 2015. At just over the mid-year mark for 2015, year-to-date sales volume is up by 5.3% over last year.
The average sale price of a residential-class property sold in July in the Ottawa area was $398,608, an increase of 1.1 per cent over July 2015. The average sale price for a condominium-class property was $259,794, an increase of 1.2 per cent over July 2015. The hottest segments in our market for July were two-storey and bungalow residential homes in the $300,000 to $400,000 price range.
Buying or Selling a home is likely one of the largest financial transactions you will do and should be handled by a professional Realtor®. If you are thinking of buying or selling – or you know somebody who is planning to do so – please give me a call. I’m happy to help.
Chris
Posted on: July 23rd, 2016 by Chris Scott
Staging is an important part of the selling process. Recently I had some clients come to me with some tight timelines to get their house ready to sell. My stager and I came up with a game plan and the results were great. They sold their Ottawa home in one day for close to asking price. See the transformation here:
http://styledandstaged.com/staging-transformations/3-steps-perfect-staging/5538
Posted on: July 7th, 2016 by Chris Scott
HOT JUNE MARKET!
Members of the Ottawa Real Estate Board sold 1,985 residential properties in June through the Board’s Multiple Listing Service® System, compared with 1,691 in June 2015, an increase of 17.4 per cent. The five-year average for June sales is 1,717. June sales turned out to be the highest sales in any month EVER in the history of the Ottawa market.
There is usually a dip in sales as we move from May to June with May generally being the “peak” month. We will be watching the trend over the summer when sales typically slow down.
Year-to-date units sold for the first half of 2016 are up 5.4% compared to the first half of last year. A total of 3,220 residential and condo properties were listed in June, capping the month off with approximately 8,300 properties on the market, down 11.5 per cent from June 2015.
The average sale price of a residential-class property sold in June in the Ottawa area was $399,382, a decrease of 1.3 per cent over June 2015. The average sale price for a condominium-class property was $264,913, a decrease of 2.4 per cent over June 2015. Residential two-storey and bungalows continue to have the highest concentration of buyers in June.
Referrals are extremely important to me and to the success of my business and every neighbourhood has its differences- so if you are thinking of buying or selling, please give me a call.
Chris
