Staying in Touch April 2022 Newsletter

As the snow finally disappears and April showers come, we are all looking forward to spending more time outside, grass greening up and Easter! We are so excited about all our clients who are celebrating their 10th anniversaries in their homes this year. What an accomplishment! We hope you find value in Staying in Touch April 2022, please let us know, we always appreciate the feedback.

The Spring market is in full swing and sellers are being rewarded on their investment. However for buyers it is challenging with the lower supply of homes on the market. A few years ago one of my clients had a lovely home but wanted to move up to a larger home. After reviewing his finances, he decided to wait to be able to put a larger down payment on the home and not have to pay the extra cost associated with an insured mortgage. Even then he could not save fast enough to equal the gain in market value, which was higher than the cost of an insured mortgage. It is better to invest in real estate sooner and get in the market then to wait. The not so perfect house will build equity for you.

Some of you are wondering how long you should wait before locking in on your mortgage. This really depends on your budget and how comfortable you are on waiting to see what happens to interest rates. With the newly released federal budget targeting housing affordability and supply, it is especially important to speak to a mortgage specialist to learn more about the new initiatives and how you can take advantage of them. This is important to do before starting your home search.

The market has gained a little more supply in certain neighborhoods. The strategy of the low asking price to get a high selling price is a challenge for buyers. We all have our own personalities on how to approach pricing. If you are looking to purchase, it is important to review previous sales and know the action on the property that is for sale to be able to make an informed decision. If you are thinking of selling, the same holds true, knowing the activity and sales in your neighborhood and surrounding areas as well as the best comparables to your home. We would be happy to show you our approach!

We do have clients looking to purchase in specific neighborhoods and types of homes, so if you are thinking of making a change please feel free to contact us. We would be happy to provide a market evaluation and help you make a plan. You can follow us on our social channels below and feel free to call or email with any questions.

Joan, Victoria & Luc

Contact Us

 @JoanSmithRealEstateFamily      @JoanSmithRealEstateFamily      Mrs. Joan Smith       @JoanSmithKanata      The Joan Smith Real Estate Family

Market Update

The Ottawa Real Estate Board reports 2,011 residential and condominium properties sold in March 2022 compared to 2,274 in March 2021, representing approximately a 12% decrease in units sold. Year to date (as of April 1, 2022) residential unit sales declined by 4.4% compared to the same time period in 2021, and condominium unit sales year to date (as of April 1, 2022) decreased 9.1% when compared with sales in 2021.

Year to date March 2022, the average price for a residential home in Ottawa is $831,122, a 13.8% increase from March 2021. For condominiums, the average sale price at the end of March was $467,915, an increase of 12.7% when compared with the same time last year.

For Kanata, unit sales in March 2022 (residential and condominium) are 160 compared to 205 sales March 2021 (approximately a 22.0% decrease). For Stittsville, unit sales in  March 2022 (residential and condominium) were 96 units compared to 111 units in March 2021 (approximately a 13.5% decrease).

In Kanata, the average sale price in March 2022 versus March 2021 has increased 12.3%, for all housing types. For Stittsville, the average sale price March 2022 versus March 2021, has increased 10.0%, for all housing types. (Source: March 2022 – Sales by District & Area, Residential and Condominium Property Classes, OREB MLS®, April. 1, 2022 – Report#3)

For the full report see “50 Years of Change in the Ottawa Market”

March residential inventory in Ottawa crept up to 960 homes for sale by the end of the month, representing about a 25% increase when compared to February 2022, and about a 10.5% increase when compared to March 2021. Condominium inventory rose to 286 units active at the end of the March compared to 231 in February 2002, representing about a 25% increase. However, this is down from the 325 active condos at the end of March 2021, representing a decrease of about 12.0%. The continued high demand and low inventory is resulting in price pressure and price increases.

Latest Mortgage Information

Reverse mortgages have been around for a long time but they are increasing in popularity in part due to both an aging population and a desire by many seniors to stay in their homes as long as possible.  For seniors on a limited income a reverse mortgage may be the perfect solution.  Houses need ongoing maintenance, expensive items like furnaces and roofs need replacement and renovations may be required to facilitate aging at home.  There are pros and cons to a reverse mortgage:

1. It can be set up to allow access of up to 55% of the home’s value based on the property and the age of the occupants.
2. Access can be in lump sums and periodic draws (to supplement monthly income or to pay for a new car, for example).
3. After set up the mortgage will remain in place until it is paid out.  The mortgage must be paid out when the owners sell or leave.
4. The rate is higher than a traditional mortgage and the debt will accumulate over time if there are no payments.  (Payments are not required but are allowed).
5. When the property is sold the mortgage balance will be deducted from the proceeds of the sale so any estate value will be impacted.
6. It can be paid off at any time although if paid off mid-term there may be a penalty.  It is set up with a term just like any mortgage ie 5 year fixed, 5 year variable.

Karen Lemieux
Mortgage Brokers Ottawa
www.karenlemieux.com
karenl@mortgagebrokersottawa.com

News & Updates

• Budget 2022 report – Making Housing More Affordable, Government of Canada website, April 7, 2022
• BUDGET 2022: Here’s how the feds say they will make housing more affordable, Ottawa Citizen, April 7, 2022
• City of Ottawa launches redevelopment process for prime ByWard Market location, City of Ottawa, March 22, 2022

• Canada to ban foreigners from buying homes as prices soar more than 50% in 2 years, Financial Post, April 6, 2022

• CREA set to bring transparency to the Canadian real estate consumer, CREA, April 6, 2022
• CREA updates resale market forecast, CREA, March 15, 2022
• Royal LePage forecasts double digit gain in national recreational house price in 2022, as appreciation is expected to remain strong following a sizzling 27% jump in prices in 2021, Royal LePage, March 2022
• ‘Multiple’ bids submitted for major attractions at LeBreton Flats, NCC says , Ottawa Business Journal, April 7, 2022, Ottawa
• Ottawa Tourism to dole out millions in grants to local businesses, Ottawa Business Journal, April 6, 2022, Ottawa

In the Community

April 5, 2022 – The Royal LePage Shelter Foundation raised $3.3 Million last year through the contributions of thousands of Royal LePage agents and supporters, making it one of the most significant fundraising results in the nearly 25 year history of the charity. Since inception, the Royal LePage Shelter Foundation has raised an incredible $38 Million in support of women’s shelters and domestic violence prevention programs from coast-to-coast. The Foundation remains the largest public foundation in Canada dedicated exclusively to this cause, just as Royal LePage continues to lead as the only Canadian real estate company with its own branded charity.

We are so pleased to support this important cause. Find out more here! 

Things to Do This Month

• 613flea – April 16 -once a month marketplace held in the historic Aberdeen Pavilion at Lansdowne Park in Ottawa.
• Ottawa’s national Women’s Show – April 9-10th
• Hop into Spring, April 16
• Maplefest, until April 18
• Ottawa Grassroots Festival, April 21 – 24
• Inspirations Spring Art Show & Sale, April 22 24
• Ottawa Cottage Life & Backyard Show, April 22-24
• THE SAVANNAH SIPPING SOCIETY, Kanata Theatre, May 10-21
• Kaleidoscope Exhibition, Kanata Civic Art Gallery, Now through May 15
• City of Ottawa Spring 2022 Recreation and Arts eGuides
• See more events at Things to do in Ottawa this weekend and Ottawa Tourism

Buying a Home? Tips and Insights

Good brokers and sales representatives save you time and money. They know your community, they know what is important when buying and selling a home, and they know all the intricacies of the process, from finding a home, preparing a successful offer in a multiple offer situation, negotiating a term of the contract, ensuring a smooth closing.

As part of the buying process we:

• Screen the available homes in the neighbourhoods you are interested in, to make sure that the houses you view fit your budget and your requirements.
• Give you important information on local real estate market values, taxes, utility costs, services, and amenities.
• Guide you through the viewing process showing you features you may not have noticed and problems you may not have spotted.
• Advise you about your legal and financial options, guiding you on the steps to take to be prepared to make an successful offer.
• Recommend expert help when needed, such as a mortgage broker, home appraisal, home inspection, legal services and contracting services.
• Manage your offers and counter-offers, and use our skills and experience as negotiators to make sure you get the best possible outcome.

As experienced Ottawa and Kanata REALTORS®, we would be happy to help you.

Buyer Resources

• Help Me Find a Home
• Agency Relationship
• Tools
• New Home Construction
• Relocation Services
• Tips and Insights
• Understanding Mortgages