Members of the Ottawa Real Estate Board sold 1,166 residential properties in March through the Board’s Multiple Listing Service® system, compared with 1,200 in March 2015, a decrease of 2.8%. The five-year average for March sales is 1,220. It is, though, a definite increase from the previous month sales – 256 more properties.
Properties are starting to sell more quickly, indicating we are heading into our busy spring market. In March, 3,203 homes were listed – up 38.6% since February.
The average sale price of a residential class property sold in March in the Ottawa area was $394,951, an increase of 2% over March, 2015. The average sale price for a condominium class property was $258,714, an increase of 2.4% over March, 2015. Canada’s capital continues to be a great place to buy and sell real estate!
Every neighbourhood has slight differences so please do give me a call if you are thinking of buying or selling – or know of somebody else who is. Referrals are very important to the success of my business so please do think of me when it comes to real estate.
According to CMHC, MLS® sales are expected to remain flat between now and the end of 2016 and in spite of flat sales and rising listings, balanced market conditions will prevail in 2015. Listings will edge higher in 2016 and, as a result, the average price of a resale home will show a small increase.
Total housing starts are expected to decrease slightly mostly due to a reduction in condo apartment starts. The inventory of completed and unsold condo units will gradually decrease causing starts to edge up again in 2016.
Housing demand is expected to remain steady in Ottawa in 2015 due to low mortgage rates and affordable prices. This may change in 2016 with modest price growth and potentially higher mortgage rates.
An increase in the supply of secondary rental market units will provide more options for renters this year but this will be short-lived as the demand for rental units is expected to increase in 2016.
If you are curious about property values in your Ottawa neighbourhood feel free to get in touch.
Every year I go through statistical reports from CMHC, top brokerages, economists, and our local real estate board. My objective in this research is to try and get a feel for where the market is heading in the upcoming year. I also poll other Realtors in my office to try and get a gauge on the pulse of the market. 2015 has been the most challenging to predict.
I think we are facing a new reality for Ottawa’s real estate market. I am not Nostradamus but I feel I can almost predict what the next few years will bring. Houses will take longer to sell and prices will be very flat with little or no change. CMHC predicts increases in line with inflation. This is good news. Other economists are predicting a decrease in price in the upcoming year. For many the prospect of this is frightening. Many of us have a significant portion of our net worth tied to the value of our home.
With 3 properties in Ottawa I can relate. However, I am not worried. We just purchased an investment property late this year. I understand the next few years could be challenging but it is the long-term 10-20 year big picture I am most interested in. Ottawa has historically had a resilient real estate market. We still have good economic fundamentals and the long term projected growth of the city will eventually tilt the favor back to sellers.
These more challenging market conditions make it imperative for both buyers and sellers to be aligned with an experienced and qualified real estate professional.
We were talking today about some embarrassing moments being a Realtor. I have had a few. The front runner was pretty easy to identify.
I was waiting in my car for my chance to present an offer on behalf of my clients. We were in a multiple bid situation. It was an unusually dark night. I had a junior agent with me and was teaching him how to present offers. I felt pretty cool that I was a senior agent. It was late, must have been 10pm.
Anyways, I was called to present and had one thing on my mind- get this deal together for my clients. As I approached the front door I could see everyone looking at me at the dining room table. The door was open so I walked right in. However, I failed to spot the mesh wire of a front screen door and walked into it at a very fast pace. If you have ever been fortunate enough to witness someone walking into a screen door you can appreciate just how hilarious it looks. Not the first impression I was looking for. I think the screen actually bounced me back into the junior agent. It was like walking into a trampoline!! Some of the screen also ripped open on the side. It did break the ice! The sellers were cool.
We all had a good laugh at my expense. I felt they may have laughed a little longer then I would have liked. But in the end everyone left happy. The sellers got more then asking, the buyers a house, and the junior agent left with a good story.
Imagine going into a bidding war on a house against your best friend.
Well, I was the Realtor caught in the middle.
It was a cold, snowy night in Ottawa. I was on my way to show a house that had just come on the market to some really close friends of mine. It looked to be a perfect fit for them. It had only been on the market for a few hours. As I approached the house I got another call from another couple and very goods friends who wanted to see the same listing. You have to understand that these two clients were also very close friends themselves(in each others wedding party’s close). My first thought when I got the call was that this was going to be awkward. But really….what was the chance of this house being “the one” for both of them?
Well, that question was answered about an hour later. After showing it to each of them back to back; my first thought was bang on. This was going to be awkward!
They both loved the house and wanted to place an offer on it. We couldn’t find a solution where everyone was happy. So…. they went into a bidding war. What are the chances of facing off against a good friend for the same house!!!
I excused myself from dealing with my second friend (because they were call #2) and set them up with a top Realtor in another office. That way everything we did was confidential and I wasn’t in the more awkward position of representing both parties.
Naturally, the client I was working with ended up securing the house 🙂 In the end my inspector Sean uncovered some issues the seller was trying to conceal. That was the end of that house. In the daylight some of the craziest neighbours I have ever seen were also revealed……but that is a story for another day.
All that agony, awkwardness, sleepless nights and no deal!
We have laughed about this many times since. Both clients found great houses shortly thereafter and we are all still good friends today. It could have been a lot worse!
It was a beautiful sunny morning in the capital. I was driving on a quiet Centertown street with a speed limit of 40km/hr. heading to show a house to a great client.
As I approached the house I saw my client and waved. I checked the mirrors and went to make a three point turn. Out of nowhere, a car smashed into the side of my SUV. It was travelling at over 130 km/hr. The only reason I survived was because their back end smashed my front end as they were swerving out of control.
What happens next is shocking. The car that hit me crashed into other parked cars. I expect them to finally stop but no, they start speeding away! That is when the police cars fly by. About 8 in total. Guy had just robbed a bank and was in a police pursuit. One cop stopped to make sure I was ok then went off in the chase.
Felt like I was on a movie set. Except I had a job to do! Takes more than a high speed police chase and accident to stop me from doing what I do. I showed my buyer the house as we waited for the police to come back. Clients come first!
FYI-cops got their man a few blocks away in a foot pursuit.
In the Ottawa housing market, it is more likely to find condominiums than it is to find co-operatives – but you should know the differences between them before you start to look.
Condominium ownership
The homeowner owns the unit and shares ownership of common elements. Condos are usually apartment buildings, but also include townhouse developments and developments of detached buildings on private roads.
The homeowner is responsible for the interior area of the unit (everything from the plaster in). The condo association is responsible for the up-keep of the exterior of the building, common interior elements (halls, elevators and parking garages, for example) and the grounds.
All condo owners pay a monthly fee to the condominium association to cover maintenance costs and common utility fees and taxes.
Condos often have strict rules regarding noise, use of common areas and renovations to units. Condominium residents often enjoy less privacy than residents of detached homes.
Condos are usually less expensive than freehold houses.
Co-operative ownership
Co-operatives (or co-ops) are similar to condos but instead of owning your unit, you own a share in the entire building or complex.
Co-op residents pay for maintenance and repairs through monthly fees and are subject to the rules and regulations of the co-op board.
If you decide to sell your shares and move out, the co-op board has the right to reject your prospective buyer.
When you have decided to purchase an Ottawa Condo – or a co-operative, it costs you absolutely nothing to engage the services of a knowledgeable Realtor®. The seller (whether new or resale) covers the brokerage fees.
Buying a home is likely the largest investment you will ever make. You want to ensure you have done your due diligence before you sign on the dotted line! The standard cost of a Home Inspection in Ottawa is between $400.00 and $500.00. This is a small price to pay for peace of mind. In the Ottawa housing market it is typical for the buyer to pay for these services.
A professional home inspector reviews the operating systems and structure of a home of any age—even new homes—and leaves a written report for the client to keep as a reference guide. Typically, the home inspector will comment on the condition of the foundation, heating and cooling systems, electrical service, roof, plumbing, and other significant structural factors and will outline costs of repair or replacement where needed, as well as comment on the condition of the property compared to others of the same age. The few hours that you spend with your inspector are the best time to learn the ins and outs of taking care of your property, and you should keep the reference book for as long as you live there.
I will add that every house has its issues. No inspection has been perfect. The objective of the inspection is not to find a house that has no faults but to educate the buyer on potential upcoming costs. I prefer a thorough inspector rather than one just pointing out the big ticket items.
As your Ottawa Realtor I can advise you on how to incorporate a home inspection as a condition of buying a property. Your offer can be conditional upon a professional home inspection being conducted and a satisfactory report being received by you, the home buyer. If the inspection report indicates some big expenses or anything you are not comfortable with we can terminate the agreement or look for abatement.
As an Ottawa Realtor who has been through hundreds of inspections, I have seen the need to have the right inspector working for you. I would recommend using someone who you know and trust completely. If you don’t have someone, I would be happy to provide someone that offers great service.
Shrinking demand for condominiums in November sapped any momentum in Ottawa’s resale homes market.
Condo sales fell 15.5 per cent from the same month a year earlier, pulling down the overall real estate market by 0.7 per cent even as sales of other housing types held steady. The drop came after three months of small gains in overall sales figures.
For the first 11 months of 2013, condo sales have fallen by 6.6 per cent, according to figures released Wednesday by the Ottawa Real Estate Board. Values have also declined, but only marginally. The average condo resale price so far in 2013 is $263,902, a 1.7-per-cent drop from 2012.
For other housing types, sales are down by 2.3 per cent for 2013, but the average price has risen by 2.1 per cent to $382,597, according to the report.
Chris Scott, a Keller Williams VIP Realty sales representative, said he hasn’t seen any major price softening in the apartment-style condos in which he specializes. Still, with new condo developments stalled and as many as 1,000 existing condos listed for sale — “almost a year’s worth of inventory” — he says pressure on sellers to reduce prices will only increase.
Without the foreign investors who are buoying the markets in Vancouver and Toronto, Scott predicts, Ottawa’s condo market will stay sluggish into 2014. But he believes demand will catch up and prices will firm as more people opt for the condo lifestyle.
“The fundamentals of the local economy are very strong,” he said.
Tim Lee, president of Ottawa Real Estate Board, said the stability long observed in the capital’s real estate market should give confidence to owners of condos and other housing types.
“We don’t have these wild fluctuations,” he said. “It’s not like, ‘Well we bought, we got transferred and now we have to sell and the market’s tanked.’ That happens in Toronto and Vancouver a lot because they can go up and down in a very short period, and in Ottawa it just doesn’t happen.”
This article was taken from the Ottawa Citizen….written by Robert Bostelaar, December 4, 2013
