We wish you and your family a fantastic 2023!
We all appreciate the many changes in 2022 and look forward to a balanced market in 2023.
Although you can get used to the unbelievable rise in market value, we all knew that this could not go on forever. When we look back to other tough markets, most recently 2008 and 2009 – we were able to work through it. The changing real estate market brings back offers with financing and building inspection conditions and some first refusal offers (conditional on the sale of another property). Changes in the market will happen and we look forward to the upswing predicted by Royal LePage later in 2023 for the Ottawa market. The Ottawa Real Estate Board published this week that we are now in a balanced market, this means that buyers and sellers have equal influence, and those wishing to upgrade may obtain less for their home than last year, but they will benefit from a wider choice of homes at attractive prices.
This month we’ve included: Year to date update on the Ottawa market, Mortgage information on the importance of term selection, Things to consider when purchasing a home, Market news and Upcoming community events. Articles include: Downsizing/Rightsizing, The Psychology of Clutter, Closing Costs and Budgeting for Your Purchase.
We thank all of you that we have had the pleasure of meeting and working with in 2022 and over the years. We look forward to working with you again and we would be pleased to assist your family and friends. Feel free to contact us with any market, renovation or real estate questions.
Joan, Victoria & Luc
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The Ottawa Real Estate Board reports 601 residential and condominium properties sold in December 2022 compared to 857 in December 2021, representing approximately a 30% decrease in units sold. Year to date (as of Dec. 31, 2022) residential unit sales declined by 24.8% compared to 2021, and condominium unit sales year to date (as of December 31, 2022) decreased 24.1% when compared with sales in 2021.
The average sale price for residential properties sold in December 2022 was $655,839 compared to $707,821 in December 2021. The average sale price for condominium properties sold in December 2022 was $434,973 compared to $399,125 in December 2021. Year to date 2022, the average price for a residential home in Ottawa is $769,623, a 7.0% increase for the same time period in 2021. For condominiums, the average sale price year to date 2022 was $453,770 an increase of 8.1% when compared with 2021.
For Kanata, unit sales in December 2022 (residential and condominium) were 69 compared to 58 sales in December 2021 (approximately a 19.0% increase). For greater Stittsville, unit sales in December 2022 (residential and condominium) were 37 units compared to 30 units in December 2021 (approximately a 23.3% increase).
In Kanata, the average sale price in December 2022 versus December 2021 decreased 10.7%, for all housing types. For greater Stittsville, the average sale price December 2022 versus December 2021, decreased 27.3%, for all housing types. (Source: December 2022 – Sales by District & Area, Residential and Condominium Property Classes, OREB MLS®, January 1, 2022 – Report#3).
For the full report see “50 Years of Change in the Ottawa Market”
December residential inventory in Ottawa crept up to 1732 homes for sale by the end of the month, about a 24% decrease when compared to the inventory of residential homes at the end of November 2022, however about a 208.2% increase when compared to December 2021. Condominium inventory rose to 522 active units at the end of December compared to 649 units in November 2022, representing about a 19.56% decrease. When compared to active condos at the end of December 2021, condo inventory in December 2022 increased 113.9%.
With approximately 3.7 months of residential inventory on the market compared to 0.9 months in December 2021 prices have leveled off in many neighborhoods. The Ottawa real estate market has changed and is now a balanced market. Generally, this means more time for purchasers to look at homes, and the inclusion of financing and building inspections in offers. It is still good to be prepared, review your finances and get a mortgage pre-approval, you never know when the property you dream of will come on the market. Also if you have a home to sell, start preparing it for market, make a prioritized list of items to complete and declutter. Knowing the value of your home relative to comparable homes and neighborhoods is key in addition to watching the market to see how the supply of similar homes is changing. (Source: 2022 – Ottawa Real Estate Board Inventory by Month – Residential and Condo, Tuesday, January 3, 2022 – Report#7).
The Importance of Term Selection
The burning question right now for anyone purchasing, renewing or refinancing is what term makes the most sense. The 5 year fixed term has certainly been the most popular for many years, but that is not necessarily the case right now. The key consideration is whether or not the Bank of Canada will be successful in bringing inflation down to the 2 to 3% rate that is their mandate. There are mixed signals right now. Job creation is strong which indicates that demand for goods and services is strong which does not bode well for a decline in the inflation rate. On the other hand, economists are still predicting a recession within the next 12 months which should bring rate relief. If you choose a 5 year term right now and rates have peaked you will be saddled with that rate for the remainder of the 5 year term or face a steep penalty to break it.
In making the decision you should consider (and research) the following:
You should also consider your own risk tolerance.
Currently there is nothing wrong with giving serious consideration to 1, 2, and 3 year terms (as well as variable terms).
A mortgage professional will be able to provide you with the data to help you make an educated decision.
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Think about the kind of home that would support your lifestyle and ask questions like:
As part of the buying process our Team will:
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.
For many people, selling a home may seem simple at first. In fact, there are many elements to consider when selling your home. To help potential sellers see things a little more clearly, we’ve created a home sellers’ guide that is divided into several topics, from evaluating your home to receiving offers. These topics explain what you need to know and do to successfully sell your home.
You can count on The Joan Smith Real Estate Family to help you navigate through the complex process of selling your home. We will review with you all the elements of our Home Sellers’ Guide that will ensure the successful sale of your home. If you are planning to sell your current home and buy a new one, check out our Selling and Buying a Home at the Same Time page for some useful tips and advice.
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
When people ask themselves, is it time to downsize? It is important to know that downsizing is not downgrading. It is about simplifying and changing your lifestyle to one that better fits you and your family. Think of it as rightsizing! Read on for options to consider.
When you are planning to buy a home, it is important to budget for the closing costs associated with your purchase. There are costs at the time of purchase and costs at time of closing. There are also different costs to plan for when buying new construction.
There’s an interesting psychological characteristic of clutter. We tend to notice it more in other people’s homes than in our own. In fact, we may not even realize a room in our house feels cluttered and uncomfortable to visitors. That’s why making each room look neat and spacious is so important when you’re selling your property.
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.
Joan and team, I wanted to take this time to thank all three of you for the great advice, service and overall experience with the purchase of our new home and the sale of our existing property. As a couple who have never gone through this process, the time and patience that your team provided were crucial to our success. Thanks again for all your knowledge and support during this whole process!