Entry level home sales stabilizing market…

As CMHC continues to tighten regulations on high ratio mortgages, it seems that first time home buyers can be credited with stabilizing the Ottawa real estate market.

Members of the Ottawa Real Estate Board sold 870 residential properties in February through the Board’s Multiple Listing Service® system, compared with 903 in February 2013, a decrease of 3.7 per cent.

“February sales are down slightly year-over-year, despite the less than favourable weather, and possible distraction of the Olympics,” says President-Elect of the Ottawa Real Estate Board, David Oikle. “Typical of a burgeoning spring market, Ottawa’s resales gained momentum in February. Looking at this month’s sales, in comparison to last month’s sales, the market has picked up as we approach the busiest time of the year – 282 more homes were sold in February, over January.”

February’s sales included 197 in the condominium property class, and 673 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.

The average sale price of residential properties, including condominiums, sold in February in the Ottawa area was $353,407, an increase of two per cent over February 2013. The average sale price for a condominium-class property was $257,752, a decrease of 2.3 per cent over February 2013. The average sale price of a residential-class property was $381,407, an increase of 2.1 per cent over February 2013. The Board cautions that 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.

“The hottest segments of our market in February are sales between $175,000 to $225,000 and $275,000 to $400,000. This could be indicative of first-time homebuyers being active buyers,” explains Oikle. “With an increased inventory of listings going into March, we could see this momentum transfer to other market segments as first-time sellers re-enter the market as buyers and help contribute to continued market stability.”

Source: Ottawa Real Estate Board

Photo credit: Ioana Todosia (http://ioanatodosia6.wix.com/caliberphotography)

 

Slow and Steady Start to the New Year

The holidays are long over, the sun is out past 4:00pm and people are jumping back into the real estate market.  As per ushe, the Ottawa real estate market is chugging along at a slow and steady pace. Members of the Ottawa Real Estate Board sold 589 residential properties in January through the Board’s Multiple Listing Service® system, compared with 594 in January 2013.  “Residential sales this January were virtually identical to January 2013. Our members sold five more freehold residential properties and 10 fewer residential condos. Statistically, the difference is less than one per cent,” says President of the Ottawa Real Estate Board, Randy Oickle. “The market activity is encouraging for homeowners considering the deep freeze Ottawa experienced this past month – a time when people are more apt to stay in and stay warm instead of venturing out to search for a home.” January’s sales included 126 in the condominium property class, and 463 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties that are co-operatives, life leases and timeshares. The residential property class includes all other residential properties. “The number of properties listed in January more than doubled the amount from the previous month – a normal occurrence at the beginning of the year as the holidays draw to a close and people begin to plan for the year ahead,” explains Oickle. “Interest rates continue to be low, with some whisperings of the rates decreasing and not increasing, as had been predicted in the last half of 2013. The Ottawa resale market has remained steady. There have been no major increases or decreases in sales or prices notwithstanding the government’s intervention in mortgage rules over a year ago.” The average sale price of residential properties, including condominiums, sold in January in the Ottawa area was $346,744, an increase of one per cent over January 2013. The average sale price for a condominium-class property was $265,775, a decrease of 1.1 per cent over January 2013. The average sale price of a residential-class property was $368,779, an increase of 0.9 per cent over January 2013. The Board cautions that 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. Source: Ottawa Real Estate Board

Market Watch:

Photo Cred: Ioana Todosia

Members of the Ottawa Real Estate Board sold 1,167 residential properties in March through the Board’s Multiple Listing Service® system, compared with 1,388 in March 2012, a decrease of 15.9 per cent.

“The Ottawa market has been described as steady and stable for the past few years. It’s not going up drastically, and it’s not going down drastically,” says Tim Lee, President of the Ottawa Real Estate Board. “The market was forecasted to slow down in 2013 as a result of recent mortgage changes, and indeed it has.”

“According to chief economists at the Canadian Real Estate Association (CREA) and intelligence garnered from large mortgage lenders, large mortgage brokers, and large real estate brokers, the most recent changes to mortgage rules and guidelines has largely impacted first-time buyers by forcing them to focus on more affordably priced homes. They were, to a much lesser extent, priced out of the market,” explains Mr. Lee. “When the changes were first announced, those who were actively shopping had to re-evaluate how much home they could afford to finance. Another factor for the slow-down of the Ottawa market could be the role of public service employment cuts in the local economy. ”

March’s sales included 253 in the condominium property class, and 914 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.

The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $358,102, an increase of one per cent over March 2012. The average sale price for a condominium-class property was $267,604, a decrease of 4.1 per cent over March 2012. The average sale price of a residential-class property was $386,197, an increase of 2.7 per cent over March 2012. The Board cautions that 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.

Source: Ottawa Real Estate Board

A Look Back

Members of the Ottawa Real Estate Board sold 914 residential properties in February through the Board’s Multiple Listing Service® system, compared with 1,008 in February 2012, a decrease of 9.3 per cent.

“It is clear that the Ottawa resale market has slowed down in comparison to this time last year,” says Tim Lee, President of the Ottawa Real Estate Board. “The government was successful in its quest to “cool down” the market. However, if we look at this month’s sales, in comparison to last month’s sales, the market seems to be picking back up as we approach the busy spring season – 315 more homes were sold in February, over January, even with three fewer days.”

February’s sales included 224 in the condominium property class, and 690 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.

The average sale price of residential properties, including condominiums, sold in February in the Ottawa area was $346,774, a slight decrease of 1.1 per cent over February 2012. The average sale price for a condominium-class property was $264,953, a decrease of 3.1 per cent over February 2012. The average sale price of a residential-class property was $373,337 a slight decrease of 0.6 per cent over February 2012. The Board cautions that 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.

“Even with the slight decline in sales year-over-year, Ottawa continues to be a great place to buy and/or sell your home,” says Lee. Talk to an Ottawa area REALTOR® for more information about the housing market outlook where you live, or want to live.

Source: Ottawa Real Estate Board

Ottawa LRT

I know I’m a little bit late, well a lot late with this post but never late than never, right.  Regardless, the city of Ottawa is about to undertake its largest infrastructure improvement project in its history. Starting in February and wrapping in October 2017, the city will construct the Confederation Line, a light rail track that will help connect the East, the West and the downtown core. Below are the details:

Construction Company

Rideau Transit Group:

• Worked on 80 major global transportation projects
• Won $13 billion worth of projects in North America since 2009
• Completed 1,360 km of tunnel and 2,500 km of rail/mass transit worldwide

The Train

The Alstom Citadis – Already used in Barcelona, Dublin, Rotterdam, Istanbul, Melbourne, Jerusalem and Gdansk.

The Stations

• TUNNEY’S PASTURE
• BAYVIEW
• LEBRETON
• DOWNTOWN WEST
• DOWNTOWN EAST
• RIDEAU
• CAMPUS
• LEES
• HURDMAN
• TRAIN STATION
• ST. LAURENT
• CYRVILLE
• BLAIR

A tunnel will be dug between Lebreton and Campus stations to decongest the downtown core.

The Renderings

Tunny’s Pasture

Tunny’s Pasture

Bayview

Bayview

Lebreton Flats

Lebreton Flats

Downtown West

Downtown West

Downtown East

Downtown East

Rideau

Rideau

Campus

Campus

Lees

Lees

Hurdman

Hurdman

Train

Train

St. Lauent

St Laurent

Cyrville

Cyrville

Blair

Blair

Condo Prices Up, Free Hold Prices Down

Members of the Ottawa Real Estate Board sold 602 residential properties in January through the Board’s Multiple Listing Service® system, compared with 682 in January 2012, a decrease of 11.7 per cent.

“The Ottawa resale market, which started to flatten out in November and December – potentially as a result of the governments’ aim to “cool down” the market – maintained its steadiness into January,” says Tim Lee, President of the Ottawa Real Estate Board.  “January 2013 isn’t too far off from the numbers we’ve seen in recent years, and although the units sold are a tad lower, Ottawa remains a healthy market.”

An economic summary of expansion in Ottawa by Shore-Tanner and Associates indicated that the rates of growth in residents over the age of 55, and particularly in the formation of single and two-person households, will continue to rise in the coming years. Consequently, these trends indicate that there will soon be a strong demand for small apartments, condominiums, and retirement homes. “Within some areas of Ottawa, we are already starting to see condo sales on the rise,” says Lee.

January’s sales included 136 in the condominium property class, and 466 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.

The average sale price of residential properties, including condominiums, sold in January in the Ottawa area was $342,458, a slight decrease of 1.8 per cent over January 2012. The average sale price for a condominium-class property was $268,604, an increase of 6.1 per cent over January 2012. The average sale price of a residential-class property was $364,011 a decrease of 2.5 per cent over January 2012. The Board cautions that 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.

The Ottawa Real Estate Board is an industry association of over 2,800 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

CMHC 2013 Market Predictions: Part 2

In the first half of this article, CMHC senior advisors outlined how contrary to popular belief, Ottawa is still in need of new condominium projects because of their affordability.  This second part will summarize where in the city the demand is greatest.

In the past couple of years, condo sales comprised 22 per cent of the city’s real estate market. That will go up slightly to the 2010 level of 24 per cent next year, Kargbo predicted.

Still, many new condo units are expensive, so first-time homebuyers have been looking towards condo resales when they’re buying their first property. That demand for lower-priced condos will drive a shift towards fewer high-end buildings and more reasonably priced units, especially downtown and in the west and southeast ends of the city, Kargbo said. Townhomes are becoming increasingly popular in the east as younger people looking to buy property search for something in their price range.

They likely won’t find it in Barrhaven, Kargbo said, because the area’s popularity with families seeking their first home has driven up prices. Kanata, Stittsville and Orléans will also have a slower recovery, as inflated prices stifle demand there.

Construction of multi-unit housing such as rowhouses and condos will see a boost in Nepean and Gloucester, Kargbo predicted.

The rental market will continue to remain tight as investors express little interest in building or buying rental buildings and units. Prices and demand have been high since 2008 and with only 400 new rental units completed in the past year, rents will remain high, Pérez Torres said.

“That brought a bit of fresh air to the market, but it’s still quite tight,” she said.

A Look Back: December

Photo Credit: Ioana Todosia

Members of the Ottawa Real Estate Board sold 618 residential properties in December through the Board’s Multiple Listing Service® system, compared with 695 in December 2011, a decrease of 11.1 per cent. The five-year average for December sales is 617.

The total number of homes sold through the Board’s MLS® system in 2012 was 14,308, only a minor decrease from the 14,389 homes sold in 2011. However, resale home sales in 2012 were slightly above the five-year average of 14,274. The average sale price for 2012 was $351,792, an increase of 2.3 per cent over 2011.

“Looking back at the 2012 market, home sales in the first part of the year increased in comparison to the first half of 2011,” said new President of the Ottawa Real Estate Board, Tim Lee. “However, with the introduction of tighter mortgage rules in July, and looming government layoffs, the market seemed to “cool down” for the second half of 2012. Although the government has succeeded in its plan to “cool down” the market, Ottawa remains steady and balanced, devoid of large fluctuations in resale activity. We are truly fortunate to live and work in such a stable market area, and it seems buyers and sellers agree that Ottawa remains a great place to call home.”

December’s sales included 134 in the condominium property class, and 484 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.

The average sale price of residential properties, including condominiums, sold in December in the Ottawa area was $336,591, an increase of 1.3 per cent over December 2011. The average sale price for a condominium-class property was $258,498, a decrease of 1.5 per cent over December 2011. The average sale price of a residential-class property was $358,211, an increase of 0.6 per cent over December 2011. The Board cautions that 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.

Source: Ottawa Real Estate Board

CMHC 2013 Market Projections Part 1: What Condo Bubble…?

As I sit and write this post from my condo at SOHO Parkway, I count five cranes scattered across the Ottawa skyline and those are only the ones I can see.  To people sitting on the outside looking in, it may seem that Ottawa is headed for a disastrous condo bubble burst, however this just isn’t the case.

Abdul Kargbo, a senior Canada Mortgage and Housing Corporation market analyst explains that while the supply of condo units for sale has been rising since 2001, the percentage of unsold units has remained flat, Kargbo said, indicating that so far, demand is keeping up with condo construction. Despite heated neighbourhood battles over new condo proposals, the number of buildings under construction is actually going down – and that’s a good thing for the market, Kargbo said.

Recently, 2010 was a bumper year for condo construction, with 1,397 units completed. That declined slightly to 1,324 in 2011, and with 948 units completed as of September this year, the numbers are on track for the downward trend to continue. “The growth rate is not going to be as brisk as we’ve seen in the last few years,” Kargbo said, particularly when it comes to prices.

It probably comes as no surprise that the 25 to 34 age group is driving the demand for condos, because condos or townhomes are the only type of housing many of them can afford as first-time homebuyers. Newcomers to Ottawa usually number around 6,000 a year, and they also drive demand. Migration to the city is expected to peak in 2013, with around 9,000 people expected to move here, says Sandra Pérez Torres, another senior market analyst.

Ottawa’s economy will remain relatively strong, despite layoffs in the city’s largest employment sector: the federal public service. “However, uncertainty will keep some potential homebuyers on the sidelines in 2013,” Pérez Torres said.

A Look Back: October

As the leaves continue to fall in Ottawa, we are seeing an increase in units sold, as well as an increase in average sale price. Members of the Ottawa Real Estate Board sold 1,073 residential properties in October through the Board’s Multiple Listing Service® system, compared with 1,059 in October 2011, an increase of 1.3 per cent. The five-year average for October sales is 1,067.

“Compared to the five-year average, Ottawa is right on track, indicating that we are not experiencing a real estate downturn in Ottawa, but a slow, steady incline in units sold and average sale price,” notes Ansel Clarke, President of the Ottawa Real Estate Board. “Ottawa continues to be great place to buy and/or sell a home.”

October’s sales included 237 in the condominium property class, and 836 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.

The Ottawa market continues to be on track historically in regards to the number of sales to date as well. Since 1999 the number of sales through the MLS® System in Ottawa has ranged from a low of 11,329 to a high of 14,783.  Sales for the first ten months of the year are at 12,768. Year-to-date average sale price is also up over 2011.

The average sale price of residential properties, including condominiums, sold in October in the Ottawa area was $346,492, an increase of 2.5 per cent over October 2011. The average sale price for a condominium-class property was $267,037, an increase of 3.0 per cent over October 2011. The average sale price of a residential-class property was $369,016, an increase of 1.8 per cent over October 2011. The Board cautions that 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.

“Although the Ottawa market is characterized as stable and steady, there can be pockets of our market where fluctuations, such as larger increases in price, exist,” explains Clarke. “This is why it is important for buyers and sellers to talk to their Ottawa area REALTOR® for more information about the housing market outlook where they live, or want to live.”

Source: Ottawa Real Estate Board