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Kanata Real Estate Agents

Staying in Touch August 2024 Newsletter

Happy August!

August is already here! We are enjoying some summer activities and hopefully you are too. The weather is certainly not very predictable and it is a good reminder to us how important it is for everyone to do what we can to slow climate change. We are proud supporters of Forests Ontario, it is a wonderful way to help.

The Ottawa real estate market is still changing and this month is a good time to list your home for a fall closing. Sales in July totaled 1,241 units, approximately a 13.6% increase from July 2023 and year-to-date, home sales increased 5.5% compared to the same period in 2023. Fundamentals continue to be important, regular home maintenance, curb appeal, staging and pricing based on market value for successful sales and purchases.

Grassroot Grannies will be doing their annual RIDE TO TURN THE TIDE on Sept 4th and 5th, which has been very successful and we have been proud to have supported them for the past eleven years.  The 15th annual RIDE TO TURN THE TIDE, is a very fantastic fundraiser for the Stephen Lewis Foundation. Funds raised will support African grandmothers, who in the wake of the global health emergency caused by HIV/AIDS have stepped in to raise a generation of orphaned grandchildren. The 2024 edition of the RIDE TO TURN THE TIDE is a 2 day event and cyclists will ride from Stittsville to Perth returning the next day, or ride one day, choosing routes of different distances. To find out how you can support this cause, CLICK HERE for details.

Also, don’t forget to register for the City of Ottawa fall recreation and culture programs, registration is open! (Click here for details)

This month we’ve included:

Contact us with any questions, we would love to chat and hear how you are doing!

Joan, Victoria & Luc

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

Market Update

The Ottawa Real Estate Board reports 1,241 properties (residential & condominiums) sold in July 2024, approximately a 13.6% increase in homes sold when compared to July 2023. Home sales totaled 8,349 units for the first seven months of the year, representing approximately a 5.5% increase for the same period in 2023. In our typical market, we can generally see activity slow in the summer with holiday season but the increased activity in July is a good sign for August and the fall market. Supply of homes on the market is increasing which is good for potential purchasers. Buyer confidence is increasing and the two consecutive interest rates cuts is a positive message to the market. Again, regular home mainteance, curb appeal, staging and pricing based on market value are fundamental to successful sales and purchases.

The Ottawa Real Estate Board is now using the MLS® Home Price Index (HPI) to track changes in the real estate market (this tool is used by Canadian Real Estate Association across Canada).  The overall MLS® HPI composite benchmark price was $648,900 in July 2024, a slight increase of approximately 0.1% from July 2023, and about a 0.2% increase from June 2024. Benchmark price for single family homes was $734,700, down 0.1% on a year-over-year basis when compared to July 2023. The benchmark price for a townhouse/row unit was $506,100, down 3.4% compared to a year earlier. The benchmark apartment price was $422,800, representing a 0.9% decrease from a year ago.

The average sale price for homes sold in July 2024 was $679,610, decreasing 2.1% from July 2023. The year to date average price was $681,082, increasing by approximately 1.0% from the first 7 months of 2023. Keep in mind, these are averages so some homes experienced a larger gain and some less, it is key to look at what is happening in your neighborhood, surrounding neighborhoods and with comparable homes. (Source: Ottawa’s MLS® Market Gains Momentum Heading into Summer, Ottawa, August 7, 2024, Ottawa Real Estate Board)

For Kanata, unit sales in July 2024 (all housing types) were 144, translating to approximately a 14.3% increase when compared with July 2023. For greater Stittsville, unit sales in July 2024 (all housing types) were 62 units, representing approximately a 21.6% increase from July 2023. In Kanata, the average sale price in July 2024 was $720,174 for all housing types, representing approximately a 3.1% decrease when compared to July 2023. For greater Stittsville, the average sale price in July 2024 versus July 2023, decreased 13.2% to $759,957 for all housing types. (Source: Ottawa Real Estate Board Residential Market Activity and MLS® Home Price Index Report-Detailed, July 2024)

July residential inventory in Ottawa – 2,231 new properties (all housing types) on the market in July 2024, an increase of approximately 17.1% when compared to July 2023 and 6.3% above the five-year average for July. At the end of July, there were 3,480 homes for sale (all housing types), about a 37.0% increase when compared to the end of July 2023 and 50.6% higher when compared to the 5 year average for July.

At the end of July 2024, Ottawa’s inventory of homes (all housing types) was 2.8 months, up from 2.3 months at the end of July 2023 (this is the number of months it would take to sell current inventories at the current rate of sales activity). However, the key is too look at the inventory in your own neighborhood and those close by if you are thinking of making a change. Contact us if you would like an update on your neighborhood.

Although new listings on the market have generally increased, you need to look at your specific neighborhood and the neighborhoods you are interested in, as well as the price points. Key is to be prepared whether you are looking to purchase, sell or do both, i.e. from financing, pre-approval, home evaluation and home maintenance and staging. Coordinating a purchase and sale involves a number of steps that we can help you with.

Click here to read our Ottawa Market Update July 2024 – 50 Years of Change.

Source: Ottawa’s MLS® Market Gains Momentum Heading into Summer August 7, 2024

Ottawa MLS HPI & Avg Price Graph, - July 2024

Latest Mortgage Information

Understanding Debt-To-Income Ratios

When applying for a mortgage, lenders consider various factors to assess your creditworthiness and determine your eligibility for a loan. One critical metric they evaluate is your debt-to-income ratio (DTI), which provides insight into your ability to manage monthly mortgage payments alongside existing debt obligations. In this article, we’ll delve into the concept of debt-to-income ratio, its significance in the mortgage approval process, and strategies for optimizing your DTI to increase your chances of securing a mortgage.

What is Debt-to-Income Ratio (DTI)?

Debt-to-income ratio (DTI) is a financial metric that compares your monthly debt payments to your gross monthly income. Lenders use DTI to assess your ability to repay debts and manage additional financial obligations, such as a mortgage payment. DTI is expressed as a percentage and is calculated by dividing your total monthly debt payments by your gross monthly income, then multiplying the result by 100.

How Debt-to-Income Ratio Impacts Your Mortgage Approval

  1. Lender Requirements: Lenders typically have maximum DTI thresholds that borrowers must meet to qualify for a mortgage. While specific requirements vary by lender and loan program, lower DTI ratios are generally preferred, as they indicate a lower level of debt relative to income and a greater capacity to handle mortgage payments.
  2. Risk Assessment: Lenders use DTI as a key indicator of borrower risk. A high DTI suggests that a significant portion of your income is already committed to debt payments, potentially increasing the likelihood of financial strain and default on mortgage obligations.
  3. Loan Terms and Interest Rates: Your DTI can influence the terms and interest rates offered by lenders. Borrowers with lower DTI ratios may qualify for more favorable loan terms, including lower interest rates, higher loan amounts, and reduced mortgage insurance premiums.
  4. Loan Programs: Different mortgage programs have varying DTI requirements. For example, government-backed loans such as FHA loans may have more flexible DTI limits compared to conventional loans, making homeownership more accessible to borrowers with higher DTI ratios.

Click here to read the rest of the article which includes Calculating Your Debt-to-Income Ratio and Strategies for Improving Your Debt-to-Income Ratio

Reni McNeil
Mortgage Brokers Ottawa
Apply online: www.renimcneil.ca
renim@mortgagebrokersottawa.com
License: 11759

News & Updates

In the Community

Beat the heat at one of Ottawa’s local beaches, splashpads or pools!

Ottawa has four public beaches on the shores of the Ottawa and Rideau rivers. They’re beautiful spots for swimming, barbecuing, picnicking or simply relaxing on a summer day.

All are easily accessible by car or bike, feature washrooms and other facilities, and have daytime lifeguards during peak season (generally, June to late August). You can even borrow a beach wheelchair at no charge. There are also many local splash pads and pools to enjoy throughout the Ottawa communities.

Learn more!

Things to Do in August

See more events: Things to do in Ottawa this weekend & 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

Selling and Buying a Home at the Same Time

Are you planning to sell your current home to find a bigger space for your growing family? Have your kids moved out to leave you as empty nesters and would like a smaller, forever home? Do you have your heart set on a different neighbourhood than where you currently live? Despite the logistical complexities involved, selling and buying a home at the same time is a common goal for many homeowners. Regardless of the timeline, getting a home ready to sell is a complex task with many details that require careful attention. Buyers want to be able to visualize living in their new home.

There are also several key factors that you should take into consideration as a homeowner, click here to see the 5 most important ones.

Sellers Resources

selling your house

Important Questions to Ask when Selling your House

If you are thinking of selling your house or condo, you probably have a lot of questions that need answers. In fact, knowing the questions to ask when selling your home is key to a successful sale, obtaining the best price and a having smooth transaction. Learn more about some of the most important questions to ask:

Home Evaluation

Home Evaluation – What is the Market Value of Your Home?

Having your home evaluated by a qualified person with excellent market knowledge and experience is key to determining the market value for your home. Establishing the right price for your home according to the market and condition of your home will maximize the number of  buyers interested in your home.

flooring

Updating Flooring to Improve the Value of Your Home

Flooring is one of the most important features of your home. We are often asked, should I change the flooring i.e. hardwood, carpet, vinyl. Updating your flooring can improve your home’s value, but there are factors to consider. There are many flooring types and options and it can be difficult to know where to start.

Featured Homes for Sale, Rent & Recently Sold

We would be happy to answer any of your questions about these beautiful homes, the greater Ottawa real estate market and market activity in specific neighborhoods.

Contact Us!

Testimonials

“Joan, Victoria and Luc provided us everything we needed to sell our home in record time. From staging to professional photos and drone video their attention to detail and industry knowledge was impeccable. They helped take the stress out of selling our home.“

Mark