Archive for the ‘Chris’ Blog’ Category
Posted on: June 26th, 2012 by Chris Scott
Recently, I have had a few questions come up regarding HST and how it applies to house purchases in Ontario. To make sure it is clear, I have included in this blog all the information you need to know.
The biggest change that took effect when the HST came into being was to effectively add more tax to services. Services used to attract GST only – but not PST. With the blended tax (HST), the tax now applies (13%) to all services. When buying a home, this could relate to such things as legal services, home inspection services, commissions, etc.
If you are buying a resale home:
There is actually no HST on a resale transaction so if you are not buying a brand new home, do consider the HST on any related services, but you don’t have to worry about it when it comes to the sale price of the home.
If you are purchasing a brand new home:
- An Enhanced New Housing Rebate means that buyers of new homes receive a rebate of up to $24,000 regardless of the price of the new home
- Buyers of homes priced up to $400,000 (about three-quarters of new homes built in Ontario) on average, pay no more – and possibly even less – tax than under the PST system.
- On new homes over $400,000, additional tax only applies to the portion of the price above $400,000. For example, if a new house was priced at $450,000, additional tax would only be applicable on $50,000
- Most builders include any HST in the advertised or contracted price of the new home
- Since December 14, 2007, the Ontario government has extended a land transfer tax refund of up to $2,000 to first time buyers of resale homes
If you have any questions, please give me a call at 613-721-4206.
Chris
Posted on: June 13th, 2012 by Chris Scott
The real estate market in the Ottawa area continues to be a healthy one! When you look at the statistics year over year, the increase in sales is significant. When you add to this an increased inventory and gradual price increases, you have all indications of a continued strong, steady market.
Members of the Ottawa Real Estate Board sold 1,896 residential properties in May through the Board’s Multiple Listing Service® system, compared with 1,659 in May 2011, an increase of 14.3 per cent. May’s sales included 364 in the condominium property class, and 1,532 in the residential property class.
The average sale price of residential properties, including condominiums, sold in May in the Ottawa area was $362,837, an increase of 3.2 per cent over May 2011. The average sale price for a condominium-class property was $268,831, an increase of 2.5 per cent over May 2011. The average sale price of a residential-class property was $385,172, an increase of 2.1 per cent over May 2011.
If you have any questions about the market or would like to know what’s happening in your own neighbourhood, please contact me.
Chris
Posted on: May 7th, 2012 by Chris Scott
The Ottawa Real Estate Market continues on a steady course. Re-sale housing inventory is up by 6.9% since last year and interest rates remain low – all indicating that Ottawa remains a healthy, stable market.
Members of the Ottawa Real Estate Board sold 1,568 residential properties in April through the Board’s Multiple Listing Service® system, compared with 1,530 in April 2011, an increase of 2.5 per cent. April’s sales included 300 in the condominium property class, and 1,268 in the residential property class..
The average sale price of residential properties, including condominiums, sold in April in the Ottawa area was $364,077, an increase of 3.7 per cent over April 2011. The average sale price for a condominium-class property was $272,851, an increase of 6.7 per cent over April 2011. The average sale price of a residential-class property was $385,660, an increase of 2.6 per cent over April 2011.
Each area is slightly different so if you are curious to know what your home is worth – or even that of the house down the street, give me a call.
Chris
Posted on: April 5th, 2012 by Chris Scott
An early spring brought with it a significant increase in residential sales and, with interest rates remaining low, the market continues to be healthy and balanced.
Members of the Ottawa Real Estate Board sold 1,396 residential properties in March through the Boards Multiple Listing Service® system, compared with 1,240 in March 2011, an increase of 12.6 per cent. The five-year average for March sales is 1,276.
The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $353,684, an increase of 2.1 per cent over March 2011. The average sale price for a condominium-class property was $267,308, an increase of 5.7 per cent over March 2011. The average sale price of a residential-class property was $375,065, a slight decrease of 0.2 per cent over March 2011.
Each area shows slightly different trends, so if you are curious to know the value of your home on today’s market, give me a call. I’m always happy to talk real estate with anyone!
Chris
Posted on: March 26th, 2012 by Chris Scott
The real estate market in Ottawa is often a very competitive place to purchase real estate. When a house is listed that shows well and is priced aggressively it will often attract more than one buyer. This creates a multiple bid situation. I have been in this situation too many times to count. Twice in the last week! In many of the cases my clients are the ones who end up securing the house. I want to share with you a few tips that help make this happen.
Firstly, I think getting the right Realtor® working for you will be the most important step. Someone who can be a guide through this complicated process. A thorough review of the market is also very important. Often times multiple bids are created because a house is under-valued as compared with other listings that have sold in the area. This means that even though a buyer might pay more than list price for a home they are not necessarily paying over market value.
Price is often the most important factor in an offer, but not always. For most people there is a human element in selling their house. I like to present my offers directly to the seller in multiple bids. Basically tell them how wonderful my clients are-which is usually true! I have had sellers more than once choose my clients’ offer that was less money. One time over $3000 less!
Conditions also play a factor. Having too many conditions or long time lines can make an offer less attractive. In some cases If the house is perfect then I suggest a pre-offer inspection. This way we can put forward a firm offer when the bid time comes. This will strengthen the offer considerably.
Multiple bids will always be a part of the home buying process. You might win some or lose some. Just remember things always have a way of working out in the end. If it is meant to be it will be!
Chris
Posted on: March 6th, 2012 by Chris Scott
The resale housing market showed a steady increase during the month of February. Coupled with a healthy inventory of properties for sale, this indicates we are heading into spring with a balanced market which is great for both buyers and sellers.
Members of the Ottawa Real Estate Board sold 1,009 residential properties in February through the Board’s Multiple Listing Service® system compared with 940 in February 2011, an increase of 7.3 per cent. The five-year average for February sales is 949. February’s sales included 244 in the condominium property class, and 765 in the residential property class.
The average sale price of all residential properties, including condominiums, sold in February in the Ottawa area was $350,046, an increase of 3.2 per cent over February 2011. The average sale price for a condominium-class property was $273,464, an increase of 4.6 per cent over February 2011. The average sale price of a residential-class property was $374,472, an increase of 3.4 per cent over February 2011.
Each area is different. If you are curious to know what your home might be worth on today’s market, give me a shout.
Chris
Posted on: February 25th, 2012 by Chris Scott
Have you ever bought something only because the price was good? I have and I always learn something from it. It is not the price that really matters, for me it is the value of the product or service. Perfect example is my accountant. My previous guy was a bit rough around the edges. He was slow to get back to me, didn’t seem engaged in my file, but I went with him because his price was low. He also always had about 4 buttons un-done on his dress shirt at all times. I didn’t enjoy staring at his chest hair while I was in his office! Nor did I appreciate the awkward sitting area with his pet dog and very loud Secretary. I finally switched-it took me 3 years! My new girl is excellent. She is fast, efficient, professional, smart, and a pleasure to deal with. Guess what, she is also a partner at her firm and much more expensive. Do I mind? Absolutely not, because I am getting better VALUE. Her knowledge and expertise has helped me save more on my returns. So in the long run I am happier and have more money in my pocket!
The same lessons can be applied to real estate. When choosing an agent, don’t just look at what someone charges. Instead look at the big picture and get a sense of what kind of value they will bring to you and your family. We are talking about your most valuable asset here. Get it done right the first time. You never regret the decisions you make when they are based on value rather than price. A good agent’s knowledge and expertise will reward you with higher selling prices and equally as important no unnecessary headaches!
I would like to share with you a quick story that reinforces the value that a good Realtor can bring to the marketplace. A friend of mine put their house for sale with a discount brokerage. One where they put the house on the mls for a set cost and the owner is then responsible for everything else. After trying for months to sell himself he handed the keys over to me. He just had enough. I then spent the necessary time and resources preparing the house for sale.
Once were better staged and ready we went to market. The list price was the same but the result was much different. We sold the house in less than a week to an out of town buyer! Remember you never regret the decisions based on VALUE!!
Chris
Posted on: February 8th, 2012 by Chris Scott
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
Posted on: January 13th, 2012 by Chris Scott
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
Posted on: January 5th, 2012 by Chris Scott
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
