Posts Tagged ‘Buyer’

FINANCIAL CONSIDERATIONS WHEN BUYING A HOME

Posted on: March 13th, 2023 by Chris Scott

When purchasing a home it is important to know what the extra costs will be. The projections below are an estimate of expenses involved in a typical real estate purchase. Not all of these costs* will apply in all circumstances.

LEGAL/ RELATED FEES INSPECTION COSTS
Lawyer Fee $900-$1100 Home Inspection $500-$600
Legal Disbursements $600-$800 Status Certificate $100
Prepaid Taxes or Utility Bills To be determined Septic Inspection $500
Title Insurance $270 Water Inspection $450
MOVING COSTS
Moving Company $600-$4000
Utility hook ups etc. To be determined
Change of locks $100
 
 
PURCHASE PRICE LAND TRANSFER TAX   LOAN-TO-VALUE RATIO PREMIUM RATE
$300,000 $2,975 Up to and including 65% 0.60%
$400,000 $4,475 Up to and including 75% 1.70%
$500,000 $6,475 Up to and including 80% 2.40%
$600,000 $8,475 Up to and including 85% 2.80%
$700,000 $10,475 Up to and including 90% 3.10%
$800,000 $12,475 Up to and including 95% 4.00% Traditional Down Payment
$900,000 $14,475 4.50% Non Traditional Down Payment
$1,000,000 $16,475
$1,100,000 $18,475
$1,200,000 $20,475
$1,300,000 $22,475

 

*Please note: these costs are merely an estimate and are only provided as a ballpark estimate of what to expect when purchasing a home.

OTTAWA MARKET UPDATE: FEBRUARY 2023

Posted on: March 7th, 2023 by Chris Scott

When looking back on last year, it’s important to know that February 2022 represented the absolute peak of our local real estate market. We had the perfect storm of low-interest rates, high demand and extremely low inventory which of course caused prices to spike. This year our market is in a very different situation. We are very much a balanced market that can stay there if interest rates stay the course. If they rise we will see us move toward a buyers market.

Our current market is a much more reasonable place to buy and sell real estate. From what I’m feeling on the ground is that buyers are starting not only to look at properties more but are also engaging and making offers. Just this last week I noticed a few listings that have been on the market forever finally sell. I think this is indicative of more buyers feeling comfortable that we are indeed at the bottom of this market cycle.

There were 855 residential properties were sold in February 2023 compared with 1,411 in February 2022, a decrease of 39%. February’s sales included 633 in the freehold-property class, down 42% from a year ago, and 222 in the condominium-property category, a decrease of 31% from February 2022. The five-year average for total unit sales in February is 1,157.

If the Bank of Canada holds interest rates steady, buyers will have more certainty to work with as we head into the spring market.

The average sale price for a freehold-class property in February was $708,968, a decrease of 15% from 2022. However, it marks a 5% increase over January 2023. The average price increase for freeholds over January could be an indicator that buyers have normalized to the current interest rates. And perhaps, it’s a glimmer of more activity to come in the months ahead.”
The average sale price for a condominium-class property was $410,927, decreasing 12% from a year ago.
With year-to-date average sale prices at $695,086 for freeholds and $411,449 for condos, these values represent a 14% decrease over 2022 for freehold-class properties and a 10% decrease for condominium-class properties.

Months of Inventory for the freehold-class properties has increased to 2.8 months from 0.7 months in February 2022.
Months of Inventory for condominium-class properties has increased to 2.5 months from 0.7 months in February 2022.
February’s new listings (1,366) were 22% lower than February 2022 (1,762) and up 3% from January 2023 (1,323). The 5-year average for new listings in February is 1,632.
Days on market (DOM) for freeholds decreased from 43 to 37 days and 47 to 43 days for condos compared to last month.

Every neighbourhood in Ottawa is different and will have trends that are unique to your area. If you want to know what your home is worth please feel free to get in touch with our team. We are always happy to help.


SUBURBAN STATISTICS UPDATE FEBRUARY 2023

Posted on: March 2nd, 2023 by Chris Scott

Here is the most recent installment of our new monthly value-added feature, the Suburban Statistics Series. This series showcases statistics for the 5 largest urban neighbourhoods in Ottawa.

As Ottawa is such a spread-out city it’s great to see the variances from area to area. All of these statistics are based on MLS OREB sales from January 1, 2022, to February 28, 2022, over January 1, 2023, to February 28, 2023.

TOP 5 THINGS TO CONSIDER WHEN BUYING A HOME

Posted on: February 24th, 2023 by Chris Scott

Buying a home can feel overwhelming for many. That’s why it’s so important to get the guidance of a great Ottawa Realtor. Our team can certainly help you navigate this stressful time and help make it enjoyable and stress-free.  

There are so many things to take into consideration when buying a house. Here are a few of the main things buyers need to think about as they search for a home. 

 

  • Location: The location of the house is one of the most important things to consider. Ottawa is such a spread-out city so this can be overwhelming for some clients.  You should think about proximity to work, schools, shopping, public transportation, and other amenities that are important to you. Also, consider the neighborhood and its safety, crime rate, and access to parks and other recreational facilities. A sense of community and home values are also important factors in the location. As someone who has lived all over Ottawa and sold in every area, we can certainly help narrow down the areas for you.
  • Price: The price of the house is another important factor to consider. You should set a budget and make sure that you can afford the monthly mortgage payments. Also, factor in other expenses such as property taxes, insurance, and maintenance costs. Our team will make sure that you are paying a fair price for your Ottawa home. We will search all recent sales and review them with you before submitting an offer.
  • Size and layout: The size and layout of the house are also important considerations. Think about how many bedrooms and bathrooms you need, as well as the size of the kitchen, living room, and other common areas. Also, consider if the house has enough storage space and if the layout works for your lifestyle and needs. Moving is no fun so you want to make sure your home meets your needs.

 

  • Condition of the house: The condition of the house is important to consider as well. Make sure to inspect the house thoroughly for any defects or necessary repairs. Hiring a professional home inspector to help you identify any issues that may not be immediately apparent. We can help line you up with the best Ottawa inspectors when the t

  • ime comes. We are well connected with other tradespeople such as septic and well inspectors or whatever is needed. 
  • Resale value: Lastly, it is important to consider the resale value of the house. You never know when you might need to sell the house, so it is important to think about its long-term value. Look at the real estate market trends in the area and think about the potential for the house to appreciate over time. As an Ottawa Realtor we are certainly going to help you in this regard. We know the
    market and can certainly help identify areas that are on an upward trend.

 

OTTAWA MARKET UPDATE: JANUARY 2023

Posted on: February 14th, 2023 by Chris Scott

With interest rates potentially holding steady the Ottawa market may be on the verge of heating up. Buyers are still super cautious but there are plenty of well-qualified buyers in the marketplace right now. Judging by full open houses and good showing activity. The challenge is that no buyer wants to make a large purchase now only to see things further reduced in 6 months from now. So many are just waiting. The ones that are making offers may just be rewarded. Warren Buffet always said to buy while others are weary. The thing about real estate is that we know we are way off the peak and the chances are that in the next few years we will be up and over the earlier highs of 2022.

If I was to sum up our market in one word it would be cautious. The numbers reflect that. The price of a residential home is down 12% from January 2022, down to $676,272, condo pricing is down as well, 8% from January 2022, sitting at $412,244. In terms of units they are also down from January 2022, 30% down for residential and 46.9% down for condo units sold.

As always please feel free to reach out to our team, if you have any questions, or if you would like to know what is happening in your neighbourhood!

SUBURBAN STATISTICS UPDATE JANUARY 2023

Posted on: February 13th, 2023 by Chris Scott

Here is the most recent installment of our new monthly value-added feature, the Suburban Statistics Series. This series showcases statistics for the 5 largest urban neighbourhoods in Ottawa.

As Ottawa is such a spread-out city it’s great to see the variances from area to area. All of these statistics are based on MLS OREB sales from January 1, 2022, to January 31, 2022, over January 1, 2023, to January 31, 2023.

INTEREST RATES RISE AGAIN

Posted on: January 27th, 2023 by Chris Scott

 

The Bank of Canada announced a small interest rate hike this week, up .25%, seeing the rate now sitting at 4.5%. This is the smallest of the rate increases since last March. I don’t think it will make a big impact in Ottawa. What this will do is bring further stability to our market and in turn help buyer confidence.

The overall goal of the Bank of Canada is to dampen inflation through a series of interest rate hikes. This campaign of rate increases to curb inflation has been ongoing since March 2022. This is the eighth time in less than a year that the rate has been hiked. Let’s hope this is the last of it.

 

SUBURBAN STATISTICS UPDATE NOVEMBER 2022

Posted on: December 16th, 2022 by Chris Scott

Here is the second installment of our new monthly value-added feature, the Suburban Statistics Series. This series showcases statistics for the 5 largest urban neighbourhoods in Ottawa.

As Ottawa is such a spread-out city it’s great to see the variances from area to area. All of these statistics are based on MLS OREB sales from January 1, 2021, to December 13, 2021, over January 1, 2022, to December 13, 2022.

OTTAWA MARKET UPDATE: NOVEMBER 2022

Posted on: December 13th, 2022 by Chris Scott

The Ottawa resale market has continued to cool this past month. Sales are down by 42% over November of last year. With average prices down 5.2 % in the same period. Important to note however prices are still up YTD by 7%.

The decline in sales volume is concerning. Buyers are just waiting to see where the economy and real estate market are going before making a purchase. The interest rates have gone up another 50 basis points which will freeze out some buyers while others may start looking in different price ranges to make it work. All to say homes are still changing hands just at a much slower pace. The average time a home stays on the market is now 50 days. For context, it was 25 last November.

With the Bank of Canada saying they may be done with rate hikes now might be a good time for buyers to execute on their purchases. Prices are reasonable and buyers have some negotiating power. I do think we will get off to a sluggish start in 2023 but when the economy performs better than expected hopefully, we can get things back on track for a very balanced market that will slightly benefit buyers.

SUBURBAN STATISTICS UPDATE OCTOBER 2022

Posted on: November 11th, 2022 by Chris Scott

As a new monthly value-added feature, we present the Suburban Statistics Series. Each month we will present statistics for the 5 largest urban neighbourhoods in Ottawa.

As Ottawa is such a spread-out city it’s great to see the variances from area to area. All of these statistics are based on MLS OREB sales from January 1, 2021, to November 8, 2021, over January 1, 2022, to November 8, 2022.