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It's that time of year where people are thinking about renovations and freshening up their home. Renovating your house can be a long and time consuming project, but to help you stay on track with your reno goals, there's a few questions you need to ask yourself first.

Click here to get on track with your reno goals.

 

Wanted: Ottawa Homes For Sale

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When the calendar rolled over into 2018 many real estate experts across Canada were speculating the housing market to "cool off" with  tighter mortgage rules and higher interest rates impacting home buyers.  While that may be the case in other real estate markets,  in the Ottawa Real Estate market the biggest factor in February's 2.8% drop in the number of sales (year over year), is that listing inventory is scarce.

"There is no doubt our sales number would have been much higher if we had more properties available for sale.  Buyer demand is there, but our inventory in both residential class and condos continues to decline.  This is creating a supply side issue in the Ottawa real estate market"

  -Ralph Shaw, OREB President

The Ottawa Real Estate board’s recently released statistics show that home buyers are still actively searching for properties  in spite of the low inventory, which is a trend that is continuing from 2017.  F If the decrease in supply in both the residential and condo markets continues into the Spring,  it may put an upward pressure on prices.  If you are thinking of selling this is a great time to get your home on the market.

Below we’ve included the latest news release from the Ottawa Real Estate Board.   Please note: average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.  We have access to current statistics and trends in our neighbourhoods and communities, it’s our job to stay on top of the market trends!  We have up to date Real Estate Market Reports readily available for you and we love to chat real estate – contact us anytime!

News Release Below:  March 5, 2018 Posted by the Ottawa Real Estate Board

Members of the Ottawa Real Estate Board sold 979 residential properties in February through the Board’s Multiple Listing Service® System, compared with 1,002 in February 2017, a decrease of 2.3 per cent. The five-year average for February sales is 922. February’s sales included 250 in the condominium property class and 729 in the residential property class.

“There is no doubt our sales numbers would have been much higher if we had more properties available for sale. Buyer demand is there, but our inventory in both residential-class and condos continues to decline. This is creating a supply side issue in the Ottawa real estate market,” concludes Ottawa Real Estate Board President, Ralph Shaw. “If this trend continues, the market will move to favour sellers, and buyers will find themselves competing for a limited number of listings.”

“Compounding the supply issue is the fact that after a record year last year, new construction is hindered getting to market because builders just cannot find enough land as a result of the urban boundary and land prices going up,” Shaw points out. “Given this environment, it’s a good opportunity for Sellers to get their property on the market,” he advises.

The average sale price of a residential-class property sold in February in the Ottawa area was $429,600, an increase of 2.7 per cent over February 2017. The average sale price for a condominium-class property was $273,174, an increase of 5.6 per cent from February 2017. The Board cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price and conditions will vary from neighbourhood to neighbourhood.

“The most active price point in the residential market continues to be the $300,000 to $449,999 range, accounting for 47 per cent of the market. While the most active price point in the condo market, between $150,000 and $249,999, accounts for 56 per cent of the market,” Shaw notes.

“The reality is that condo sales are driving the number of properties sold at the moment. Due to demand, the condo market is experiencing some price recovery. Units in the lower price points of the condo market are likely moving rapidly because of the limited supply in the rental market which is yet another factor at play. The lack of availability is essentially forcing renters into condo ownership,” he explains.

“Ottawa is beginning to experience similar indicators that have ultimately led to challenging real estate markets in our larger metropolitan cities. It starts with supply shortages which eventually lead to affordability issues. The city in particular needs to have an intelligent vision about how to support and stimulate all aspects of the market from new construction through to the rental market availability,” Shaw elaborates.

“With this being a civic election year, we look forward to talking with our council and mayoral candidates about what measures need to be taken now to support affordability, before we develop the supply challenges of Toronto or Vancouver,” he cautions.

In addition to residential and condominium sales, OREB Members assisted clients with renting 348 properties since the beginning of the year.

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Looking for something fun to do to kick off the first weekend in March? Ottawa has lots of fun activities, live music, sports and events for the whole family this weekend. Enjoy Disney on Ice Dare to Dream with the kids, a night of live music with your friends, or a sugar rush from the Maple Fest - there's something for everyone!

Click here to plan your weekend fun.

 

New Mortgage Rules – Renewing and Refinancing

January 1^st, 2018 Canada’s new mortgage rules came into effect and it was big news. These new rules appear to have the greatest impact on those looking to qualify for a new mortgage but if you are looking to renew or refinance your mortgage, you may be impacted as well. At the centre of the new rules is a stress test requiring applicants to qualify at a rate at least 2% higher than the rate they will be paying, regardless of the down payment they are making on the home. The new rules may limit your options but rest assured, you will not lose your mortgage over these changes.

Mortgage Renewals

If your mortgage is up for renewal, lenders do not need to apply the stress test to renew an existing mortgage. This means that as long as you stay with the same lender and don’t change any of the terms of your mortgage, you will have no problems. But, if you want to shop around for the best rate, you will need to pass the stress test with any other financial institution. This may limit your options and may force some Canadians to accept a higher or uncompetitive rate if they are unable to pass the stress test.

Mortgage Refinancing

If you are planning on refinancing your mortgage, even if it is with the same lender, you will need to qualify at the higher stress test rates. This will affect Canadians who are looking to borrow money against their homes for renovations or repairs. If you are looking to refinance, you will have to qualify for the new loan at a rate that is 2% higher than your existing rate. This may mean that some Canadians may have to settle for a smaller loan or forego plans altogether.

Take Aways

The most important thing to remember not to panic, you will not lose your home over these new rules.  Many Canadians will be able to pass the stress test for renewals and refinancing, but in any case as long as you stay with your existing lender, you will remain approved for the entire term of the mortgage.  To better understand how these changes may affect you, it is always advisable to speak to your mortgage broker or bank well before your renewal date;  it is best to understand your options in advance.

If you are looking to buy a home in 2018,  especially in the Ottawa real estate market,  getting your financing in order before you start serious house hunting, is increasingly important.  It will help you act quickly and with confidence when you find your dream home!  Let us know how we can help!

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The promise of warmer weather is upon us, and it's the perfect time to be looking for a new home. The best way to decide if an area is right for you is to explore it! Whether you're looking for an area with the best schools, emergency services, within walking distance to museums, or has plenty of parks - Ottawa In My Neighbourhood is a great place to narrow down your search.

Click here to explore your next neighbourhood.

 

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March break is just around the corner, but luckily there's many events to keep you and your children occupied! There's several fun activities taking place, some during both the Ontario and Quebec March Breaks, like the Funhaven Family Centre, Camp Fortune, Escape Rooms and more.

Click here to plan your next March Break Family Adventure.

 

Photo for RCMP Musical Ride

Check out the great activities happening in Ottawa! Here is a list of activities happening in and around Ottawa this weekend, beginning February 22, 2018.

Click here to see the events

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With the warmer weather and rain that we've been having, an awful lot of snow has been melting. This can lead to flooding and other damages to your property, which can be very expensive to fix. Instead, focus on preventative measures to ensure that your home won't become damaged, instead of spending money to fix it after the fact.

Click here to learn how to prevent flooding from the melting snow.

 

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Happy Valentine’s Day! Looking to celebrate your love with flare today? Ottawa has several romantic activities and events you and your partner can take part in. Treat yourselves to couples spa treatments, gourmet meals, or a comedy show – the options are endless.

Click here to see Ottawa’s Valentine’s Day events.