Author Archive

Ottawa Market Update for January 2012

The Ottawa Resale Housing Market had a fairly typical January although inventory of homes for sale is higher than a year ago, offering more choice for buyers. 

Members of the Ottawa Real Estate Board sold 684 residential properties in January through the Board’s Multiple Listing Service® system compared with 677 in January, 2011, an increase of 1%. The five-year average for January sales is 652. Of those sales, 138 were condominiums while 546 were in the residential property class. 

The average sale price of residential properties, including condominiums, sold in January in the Ottawa area was $349,415, an increase of 5.6 per cent over January 2011. The average sale price for a condominium-class property was $253,210, an increase of 6.8 per cent over January 2011. The average sale price of a residential-class property was $373,731, an increase of 5.5 per cent over January 2011.

Since prices vary by area, if you are interested in knowing what your home is currently worth on the Ottawa Market, please give me a call.  And, as always, referrals are key to my business success!

Chris

Ottawa Market Outlook for 2012

Most predictions are that Ottawa’s housing market will remain stable in spite of slower economic growth and the continued uncertainty in global markets. I tend to agree with this outlook. The only question mark relates to the upcoming federal budget. Substantial cuts to jobs in the public service could have a temporary effect on our housing market.

The fundamentals are still strong for Ottawa. Good job market, highly paid workforce, low vacancy rates, and continued growth in the NCR. Interestingly, indications are that this year’s market will be fuelled by move up buyers and downsizing baby boomers.

According to CMHC, “Ottawa’s housing market activity will moderate but remain stable going into 2012, supported by low financing rates, slightly improving labour market conditions and a positive migration outlook. Given the headwinds weighing on the economic outlook, as well as the increasing significance of an aging population, our forecast for dwellings in Ottawa favours more affordable housing choices”, said senior market analyst Sandra Torres.

It is expected that condominiums will lead the charge in 2012. This market is being driven by baby boomers looking to downsize. According to CMHC, more than 170,000 people in the capital region are between the ages of 55 and 74. It is also expected that more than 80 per cent of all residential construction started in Ottawa in 2012 will be in the suburbs, outside the Greenbelt.

The condominium boom will have an impact on the resale market. As more people opt for smaller condo spaces outside the Greenbelt, CMHC expects a record number of homes to be offered for sale. This will increase competition among sellers and could cause price increases to taper off, perhaps more in step with inflation at about 2 per cent.

Interest rates are expected to remain low for most of 2012 so Buyers will have money to spend and inventory to choose from.

I am always available to chat if you have any questions about the market or your house in particular.

Chris

Ottawa Market Update

Resale home sales in 2011 were slightly above the five-year average of 14,326 and that’s really the story of the year. The market started off the year quietly, but gained momentum as the year progressed, including the best November on record.

The total number of homes sold through the Board’s Multiple LIsting Service® system in 2011 was 14,412, an increase of 1.7% over 2010. The average price for 2011 was $343,701, an increase of 5.2% over 2010.

Members of the Ottawa Real Estate Board sold 699 residential properties in December through the Board’s Multiple Listing Service® system compared with 618 in December 2010, an increase of 13.1%. The five-year average for December sales is 611. Of those sales,177 were condominiums while 522 were in the residential property class.

The average sale price of residential properties, including condominiums, sold in December in the Ottawa area was $332,527, an increase of 2.6 per cent over December 2010. The average sale price for a condominium-class property was $262,514, an increase of 3 per cent over December 2010. The average sale price of a residential-class property was $356,267, an increase of 0.2 per cent over December 2010.

Neighbourhoods can differ, one from the other, so if you re curious about your home’s value in today’s market, please give me a call. 

Chris

Ottawa Market Update

Last month was the best November on record for resale homes in Ottawa and shows that even as we head into winter – a normally quiet time in real estate – our market is alive and well and, in fact, is thriving. The inventory of homes for sale is higher than at this time last year, indicating a confidence in the market on the part of sellers. Buyers continue to be pleased with the low interest rates.

Members of the Ottawa Real Estate Board sold 1,020 residential properties in November through the Boards Multiple Listing Service® system compared with 940 in November 2010, an increase of 8.5 per cent. The five-year average for November sales is 881. Of those sales, 244 were condominiums while 776 were in the residential property class.

The average sale price of residential properties, including condominiums, sold in November in the Ottawa area was $347,795, an increase of 7.3 per cent over November 2010. The average sale price for a condominium-class property was $265,800, nearly unchanged from November 2010. The average sale price of a residential-class property was $373,577 an increase of 9.2 per cent over November 2010. Since each area shows slightly different trends, if you would like to see what’s happening in your neighbourhood, contact me and I can send you the recent sales, average prices and any other additional information that you may wish to have.

Chris

Ottawa Market Update

Condominiums were the main driver of resale homes in October with condo sales up 14.5% from the same month in 2010.  Residential sales were near-identical to last year’s.  The rising popularity of condos is certainly evident in the numbers.  

Chris

Ottawa Market Update

Members of the Ottawa Real Estate Board sold 1,202 residential properties in September through the Board’s Multiple Listing Service® system compared with 1,071 in September 2010, an increase of 12.2 per cent. The five-year average for September sales is 1,160.

Of those sales, 280 were in the condominium property class, while 922 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties, which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“Not much has changed in the Ottawa resale housing market since last month. Sales remain slightly above average, prices continue to appreciate at a moderate rate, and homes are taking about the same amount of time to sell,” said Board President Joanne Tibbles. “The stability and affordability of our housing market, coupled with low interest rates, is still appealing for investors and for home buyers who want to make Ottawa the best place to call home,” she added.

The average sale price of residential properties, including condominiums, sold in September in the Ottawa area was $335,765, an increase of 3.4 per cent over September 2010. The average sale price for a condominium-class property was $254,864, an increase of 5.9 per cent over September 2010. The average sale price of a residential-class property was $360,334, an increase of 3.2 per cent over September 2010.

Each area shows different trends.  If you are interested to know what your house is currently worth on today’s market, give me a call.  I’d be happy to provide you with the information or to answer any real estate related questions you might have.

Chris

How Much Can You Afford?

How Much Can You Afford?

Before you begin shopping for a home, it’s important to know how much you can afford to spend on homeownership. You will want to plan ahead for the various expenses related to homeownership. In addition to purchasing the home, other significant expenses will include heating, property taxes, home maintenance and renovation as required. Two simple rules can help you figure out how much you can realistically pay for a home. You must understand these rules to understand if you will be able to get a mortgage.

Affordability Rule 1

The first rule is that your monthly housing costs (principal, interest, property taxes and heating/cooling expenses) shouldn’t be more than 32% of your gross monthly income. If you are thinking of buying a condo, you should also include half of the monthly condo fees.

Affordability Rule 2

The second rule is that your entire monthly debt load should not be more than 40% of your gross income.  Your entire monthly debt load includes your housing costs plus all your other debt payments (car loans or leases, credit card payments, lines of credit payments, etc.).  

Your Maximum House Price

The maximum home price that you can realistically afford depends on a number of factors. The most important factors are your household gross monthly income, your down payment and the mortgage interest rate. For many people, the hardest part of buying a home — especially their first one — is saving the necessary down payment.

How to Calculate your Mortgage Payments

Use the mortgage calculator on my website to run some numbers and get an idea of how much house you can really afford.  There is no point in being house poor.  Buying a house is likely the largest and most significant investment you will make in your lifetime so it’s best to “get it right”.  If you have questions, give me a call.  I’m always happy to help.

Choosing a Real Estate Agent

If you’re like most people, buying a home is the biggest investment you will ever make. Whether you’re buying a starter home, your dream home or an investment property, you should find an agent with experience in the local market to ensure you are making the most informed decisions you can, every step of the way.

Here are some characteristics of a good Real Estate Agent:

• They will take the time to understand what it is you are looking for
• They will help you to determine how much house you can afford
• They will encourage you to get pre-approval for a mortgage
• They will be eager to help you find the right home 
• They will do their homework. They will offer to find you the information you need, and get back to you 
• They will follow-up to see if you are interested in viewing more houses 
• They make it easy for you look at the house…if the homeowners remain on the premises, they will distract them while you have a good look around 
• They will keep out of your way, and allow you to set the pace
• They will listen to your comments and concerns, and address them, if possible

Any agent can take you to a house and open the door for you. You will want to find someone who feels like they are on your ‘team’, and it may take a few appointments to find the right one, but you will have a much more positive experience during what can be a very stressful time.