Staying in Touch

February 2022 Edition

January is already gone and February is here! An update from us to you. In this issue, learn more about the Ottawa & Canadian real estate market, mortgage tips, events in our community, ideas for simple kitchen renos, the value of window replacement, new residential vacant unit tax & more! February is also Heart month and of course Happy Valentines Day!

The real estate market continues to have low supply of homes for sale. In combination with pent up demand, the greater Ottawa market is selling well and average residential and condominium prices increasing. This is making our winter months an active market, as reported by the Ottawa Real Estate Board.

It is wonderful to have the canal open and many outdoor rinks in operation for everyone to enjoy, a setting to have fun with family and friends. February is Heart month! It is time for us to help the University of Ottawa Heart Institute, a great institution who works so hard for all of us. See more activities to enjoy in our newsletter.

Recently we supported the University of Women Foundation to raise money for their university scholarship fund. This virtual event featured a discussion with Elizabeth Hay, the author of the best selling novel, All Things Consoled, and Alan Neal, award-winning journalist and host of CBC Ottawa’s All in a Day. It was a delightful evening for many and was very successful.

Again, it may be that time of year some of us start thinking if we want to change our lifestyle. The challenge is where do you start? Understanding the market value of your home is key. Are there improvements you want to do/or are they necessary for you to do, to obtain top value. Where are you moving to? We can help you prioritize and answer your questions.

Hopefully by Spring we will be able to see more of you in person. As always, we would love to hear from you, whether a short chat on what you have been up to or questions about real estate. Feel free to call or send us an email.

Joan, Victoria and Luc

Contact Us

In the Community

The University of Ottawa Heart Institute’s biggest fundraising initiative of the year is here. February is Heart Month. Last year, your record-breaking donations exceeded one-million dollars! With new partners and initiatives for 2022, the Heart Institute is looking forward to bringing increased knowledge of heart health challenges while at the same time raising funds for ground-breaking research. From scavenger hunts to greeting cards to lighting the City red and more! Don’t forget donations to our community are matched all month long!

Click here to find out how you can offer your support!

Things to Do This Month

• Energy Efficeint Home Retrofit Webinar, City of Ottawa, Feb. 17, 2022
• Rideau Canal Skateway– until February 28, 2022 (weather permitting)
• City of Ottawa Outdoor Rinks
• Icelynd Skating Trails, 6865 Fernbank Road, Stittsville
• Young at Art  Deadline for submissions is March 28, 2022
• The Snowfest 613 contest until February 21, 2022
• Wellington West BIG HEART 2K CHALLENGE February 14-28, 2022.
• City of Ottawa  drop-in activities & recreation programs
• See more events at Things to do in Ottawa this weekend and Ottawa Tourism

Market Update

The Ottawa Real Estate Board reports 936 residential and condominium properties sold in January 2022 compared to 963 in January 2021, representing a 3% decrease in units sold. Residential unit sales decreased by 2% in January 2022 from January 2021, and condominium unit sales decreased by 5% in January 2022 from January 2021.

As of January 2022, the average price for a residential home is $771,739, a 14% increase from January 2021. For condominiums, the average sale price in January was $447,943, an increase of 17.8% when compared with January 2021.

For Kanata, unit sales for January 2022 (residential and condominium) are 74 compared to 78 sales for the same time period in 2021 (approximately a 5.1% decrease). For Stittsville, unit sales for January 2022 (residential and condominium) are 35 units compared to 33 units in January 2021 (approximately a 6.1% increase).

In Kanata, the average sale price January 2022 versus January 2021 has increased 15.3%, for all housing types. For Stittsville, the average sale price January 2022 versus January 2021, has increased 6.8%, for all housing types. (Source: January 2022 – Sales by District & Area, Residential and Condominium Property Classes, OREB MLS®, Feb. 1, 2022 – Report#3)

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

Continued housing supply shortage and pent-up buyer demand is continuing to fuel the the Ottawa market. January residential inventory was below that of 2021 at 562 units, condominium inventory was more on par with inventory at 244 units (see graph). As we move closer to Spring we anticipate more properties will come on the market as we typically see, but the low supply makes February and early March good times to market new homes for sale.

Latest Mortgage Information

With rates on the rise it is increasingly important to lock your rate in as a first step in your housing search.

1. There is a difference between a prequalification and a preapproval.  The latter is a rate hold.  With a prequalification the lender reviews the paperwork associated with your income and down payment and holds the rate.   This can be important if either is complicated.
2. Rate holds are typically for 120 days from date of submission to the closing date.  Some lenders will provide a longer rate hold for a new construction purchase (up to 2 years in some cases).
3. The rate hold can be refreshed at any point, but the new rate will be the rate on the day the refresh is requested.  This might be something to consider if rates are steadily moving up and a closing date will likely fall outside the 120 day window.
4. Pre-qualifications do not approve the property, just the covenant (the borrower).
5. You can get preapproved and prequalified for purchases, refinances and switches to new lenders.
6. You cannot get a rate held for a rental property.

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

News & Updates

• Spring housing market poised for continued price growth following double-digit gains in fourth quarter, Royal LePage, January 14, 2022, Toronto, ON
• Bank of Canada maintains policy rate, removes exceptional forward guidance, Bank of Canada, January 26, 2022, Ottawa, ON
• Monetary Policy Report, Bank of Canada, January 26, 2022, Ottawa, ON
• Buying a home. Tools and information to help you buy a house or condominium in Canada, CMHC, Ottawa, ON
• Ottawa Business Journal Book of Lists, February 1, 2022, Ottawa

Improving Your Home’s Value

Stress-Free Kitchen Upgrades (No Remodeling Required!)

If there’s one area of the home that most often calls for custom upgrades, it’s the kitchen. Whether you’ve purchased a new build or a previously-owned home, even well-designed spaces can be improved to better suit your needs. You don’t have to spend a fortune on renovations to create your dream kitchen – especially if your biggest problem is a lack of storage.

Install custom drawers in your cabinets.

The run-of-the-mill cabinetry featured in most kitchens, while attractive, usually lacks imagination. Luckily, installing pull-out drawers is a highly-customizable solution for most kitchens. The options are endless: from tiered pull-out spice racks, to rotating corner shelves, most of these additions can be sourced inexpensively and installed in an afternoon.

Add a wall-mounted plate rack.

Dramatically boost the decor and functionality of your kitchen with the addition of a plate rack. Not only will you add some personalized charm to your walls and make space in your cabinets, you can show off the beautiful dishware that would otherwise be hidden away.

Consider a butcher-block island.

Don’t have the space or budget to install a permanent kitchen island? Opt for a free-standing island instead. These days, you can find just about any size and design to match the feel of your kitchen – consider a butcher-bloack top as it can double as a food prep station, saving you space and elevating your entertaining potential.

Are you considering a kitchen upgrade? Ask me how you can add more value to your home.

Should You Replace Your Windows

Here’s a surprising statistic. Less than 30% of window replacements are the result of the old windows being worn, broken or otherwise in need of replacement.

Clearly, there are other good reasons to consider new windows!

One of the most popular motivations is cosmetic. Brand new windows have a huge impact on the overall look of a home, both on the inside and the outside. New windows can improve curb appeal — an important element when you sell a home. From the inside, new windows can dramatically improve the look of a room.

Another reason to replace windows is to address energy costs. Modern windows are packed with technologies that lower heating and cooling bills. From low-e/argon to special spacer bars to highly insulating options, window technologies can provide savings you’ll notice, especially if you’re replacing very old windows.

A third reason is window style and characteristics. Simply put, you may not like your current windows! You may want more glass and less frame to enhance your view. Maybe your windows pull up (vertical sliders) when you’d rather have them open like a door (casements). Perhaps you’d like fancy blinds in-between the panes of glass. Replacing windows lets you get exactly the look and features you want.

Will new windows boost the resale value of your home? Yes they will, at least some. But there’s one thing for certain: upgraded windows definitely make your home look more appealing to buyers.