Happy December!
The snowflakes will be flying and the decorations and lights are beautiful. It is again the festive season and 2022 has certainly flown by quickly. We are all healthy and hopefully you are too. It is a time to celebrate together and give to others less fortunate in our community.
The real estate market has had many different looks in the past three years, but overall the market values of homes has gained substantially. Future investment in real estate is very positive and although there is a bump in the road one should not be discouraged to buy a home. There is security and joy that comes from stating “this is our home”. All information available shows the growth in population is positive and real estate will still be very much sought after. Important to remember is to try and sell and buy your next home in the same type of market.
Winter is a good time to sell your home because winter homebuyers tend to be very motivated. Most people who are looking for a house in the midst of winter are on a deadline – they may have been relocated for work, experienced a family change or they’re taking advantage of time off during the holiday season. Chances are, if they come to see your home in the winter, they’re serious buyers.
If you are thinking of purchasing a home it is important to ensure that you have discussed all of the financing options with your mortgage broker and bank and are preapproved, so that you know what price point you are in. Another bonus is that services like moving companies may offer seasonal discounts.
This month we’ve included: information on important mortgage terms, some tips on buying a home, common questions about solar energy, winter home projects that will cut down on your heating bill, and the importance of neighbourhood whether buying new or resale.
See the link in the events section for all the lovely local christmas craft fairs. It is satisfying to see our young hockey players enjoying full seasons again and we are delighted to see them grow from year to year. It has been our pleasure to support two Kanata Teams in 2022.
We are always here to answer any of your questions about market value, marketing of your home, need a professional contact or if you would just like to chat.
We wish you happiness and health in 2023.
Joan, Victoria & Luc
Click on the ornaments to find out more information about ways to offer support!
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Market Update
The Ottawa Real Estate Board reports 846 residential and condominium properties sold in November 2022 compared to 1,456 in November 2021, representing approximately a 42% decrease in units sold. Year to date (as of December 1, 2022) residential unit sales declined by 24.9% compared to the same time period in 2021, and condominium unit sales year to date (as of December 1, 2022) decreased 22.8% when compared with sales in 2021.
The average sale price for residential properties sold in November 2022 was $680,031 compared to $717,001 in November 2021. The average sale price for condominium properties sold in November 2022 was $415,533 compared to $432,061 in November 2021. Year to date November 2022, the average price for a residential home in Ottawa is $774,422, a 7.6% increase for the same time period in 2021. For condominiums, the average sale price year to date November 2022 was $454,436 an increase of 8.0% when compared with the same time period last year.
For Kanata, unit sales in November 2022 (residential and condominium) were 70 compared to 115 sales in November 2021 (approximately a 39.1% decrease). For greater Stittsville, unit sales in November 2022 (residential and condominium) were 39 units compared to 51 units in November 2021 (approximately a 39.2% decrease).
In Kanata, the average sale price in November 2022 versus November 2021 decreased 5.2%, for all housing types. For greater Stittsville, the average sale price November 2022 versus November 2021, decreased 2.7%, for all housing types. (Source: November 2022 – Sales by District & Area, Residential and Condominium Property Classes, OREB MLS®, December 1, 2022 – Report#3).
For the full report see “50 Years of Change in the Ottawa Market”
November residential inventory in Ottawa crept up to 2285 homes for sale by the end of the month, about a 10% decrease when compared to the inventory of residential homes at the end of October 2022, however about a 145.4% increase when compared to October 2021. Condominium inventory rose to 648 active units at the end of November compared to 681 units in October 2022, representing about a 4.8% decrease. When compared to active condos at the end of November 2021, condo inventory in November 2022 increased 58.4%.
With approximately 3.5 months of residential inventory on the market compared to 0.9 months in 2021 and prices levelling off, the Ottawa real estate market has changed. Now is a good time if you are thinking of purchasing, a review of your finances with your bank/mortgage broker is key before getting into an offer situation. If you are thinking of selling, pricing in your neighborhoood and relative to other proximate neighborhoods is important. Again home presentation and curb appeal is fundamental to get good dollars and a reasonable selling time. (Source: 2022 – Ottawa Real Estate Board Inventory by Month – Residential and Condo, Monday, November 1, 2022 – Report#7)
Latest Mortgage Information
More to a mortgage than the Interest Rate to consider!
“There are many decisions to be made when obtaining a mortgage. The most fundamental are the term and the amortization. The amortization is the length of time it takes to pay the mortgage off, and most borrowers choose 25 or 30 years. A 30 year amortization is only available to someone with a minimum 20% downpayment. Amortization is broken down into terms which is the length of time a rate is guaranteed for. Typically terms run from 6 months to 10 years. When deciding on a term it is important to consider any potential life changes that might occur during the term and to consider where we are in the economic cycle, ie. are rates likely to increase or decrease during the term. Paying a mortgage off mid-term may result in significant penalties. Penalties for fixed term mortgages are based on current rates, your mortgage rate, the balance of your mortgage and the time to maturity. If your rate is higher than current rates you should expect a significant penalty. Calculations do vary between lenders – monolines (deal solely in mortgages) typically have lower penalties than banks. However, read the fine print. Sometimes rate specials come with restrictions and higher penalties. The penalty for a variable rate mortgage is typically interest only.
Porting your mortgage is at the discretion of the lender but it is generally broadly available. A port allows you to keep your existing rate for the balance of the existing mortgage. If your new mortgage is larger than your old one your lender will provide the new money at new rates so you will have a blended rate although some lenders will set up the new money as a separate mortgage but under one umbrella charge. If there is a difference in the dates between your sale and purchase you can also obtain a bridge loan (again at the discretion of the lender). Terms, rates and fees vary from lender to lender. The bridge loan allows you to access your equity prior to your sale. If the loan is large enough the lender may register a charge against your existing property to protect themselves in the rate event that the sale falls through. Another option which is rarely used is a mortgage assumption whereby the purchaser assumes the mortgage of the seller. The assumption is dollar for dollar and some lenders will require that the seller remain financially responsible for the mortgage.
As always, any mortgage decision should be make with the guidance of a mortgage professional.
Karen Lemieux
Mortgage Brokers Ottawa
Apply online: www.karenlemieux.com
karenl@mortgagebrokersottawa.com
License: 11759
Request A Home Evaluation Today
News & Updates
- Canadian housing starts fall 11% in October: CMHC, The Canadian Press, Nov. 16, 2022
- Rising rates spur rise in vendor take-back mortgages, The Globe and Mail, Nov. 16, 2022
- 875 Heron Road plots green retrofit for 2027, Sustainable Biz, Nov. 18, 2022
- Ontario should act to stop ClubLink’s Kanata development, Ottawa Citizen, Nov. 22, 2022
- Ottawa lags in return of downtown workers, CBC News, Nov. 23, 2022
- Banks seek workarounds to avoid mortgage default, Financial Post, Nov. 25, 2022
- Ontario passes housing bill amid criticism, The Canadian Press, Nov. 28, 2022
- Real estate industry braces for foreign buyer ban, The Globe and Mail, Nov. 30, 2022
In the Community
When shopping, consider picking up something to support the Kanata Food Cupboard, Sock it to Christmas or Toy Mountain!
- The Kanata Food Cupboard – find out more about their #AdoptAFamily program by clicking here.
- Toy Mountain and the Salvation Army provide toys to more than 25,000 children. Click here for more information.
- Sock it to Christmas – in support of the Parkdale Food Centre’s Soup & Sock program, the Sheppherd’s of Good Hope & the Ottawa Mission. More details
- You can also drop off donations for The Kanata Food Cupboard, Toy Mountain & Sock it to Christmas at our office! Royal LePage Team Realty, Brokerage, 484 Hazeldean Rd.
Things to Do This Month
- Christmas Craft Fairs – Throughout December
- Enchanted Evening – Dec 8
- Holiday Lights Walking Tour – Dec 10
- Ottawa Santa Shuffle – Dec 10
- Christmas Down on the Farm – until Dec 18
- A Country Christmas – until Dec 18
- Stanley’s Christmas Village – Dec 3-18
- Magic of Lights – until Jan 7
- Alight at Night – until Jan 7
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 a 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.
We have the expertise to help you find a home in the neighbourhood of your dreams! We are experienced Kanata, Stittsville and greater Ottawa REALTORS® and we would be pleased to help you, a family member or a friend. Feel free to contact us with any questions.
The importance of furnace maintenance
It’s important to remember that your furnace will naturally wear down with age and not run as efficiently as it did when it was new. Regular maintenance throughout its lifetime will help keep your furnace running in top shape for longer, and will help reduce your energy consumption. It will also provide you and your family with peace of mind for the coming winter months!
Regular maintenance will also help you save money. While furnaces do come with a manufacturer warranty, the fine print often states it is only valid when regular maintenance has been performed on the unit. It is important to know that if something goes wrong with your furnace and you haven’t been keeping up with the maintenance schedule, you could end up paying an expensive repair bill.
Think of your furnace as you do your car… Cars that are well maintained tend to last longer. The same applies to your furnace. If you have an older furnace, you may want to consider an annual maintenance plan that includes an annual check plus covers some repairs costs if a repair is needed.
If you haven’t performed regular maintenance on your furnace, don’t worry – this year is a great year to start!
We are experienced realtors® in Ottawa and surrounding areas, we know what buyers are looking for and how to highlight the best features of your home and present them to potential buyers. We are here to guide you through the process of preparing your home for market and the steps involved in selling your home! We are pleased to answer your questions!
Let us Help You Sell Your Home
Common Questions About Solar Energy
Have questions about solar energy and want to reduce your carbon footprint and utility bills? Read on, now is the perfect time to consider solar power before the spring installation season.
Winter home projects that will cut down on your heating bill
Finding a comfortable temperature inside your home is a delicate balance between adjusting the thermostat and worrying about the price of your utility bill. Read on for tips to save on your bill!
Neighbourhood matters whether buying new or resale
Buying new or resale, is often an ongoing debate by many potential home purchasers. There is more to consider than the age of the home and required updates.
Featured Homes for Sale, Rent & Recently Sold
Market stats from the Ottawa Real Estate Board show that we are heading for a balanced market which is four months of inventory of homes active on the market. We would be happy to answer any of your questions about the market and these beautiful homes.
Testimonials
“Joan, Victoria, and Luc are a hard-working, detail-oriented, experienced, knowledgeable, strategic, value-for-dollar real estate team. They are good listeners, respectful of the client’s needs, clear communicators, available and responsive. Their professionalism is second to none. I highly recommend them.”
Lynn