Happy New Year!
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
Follow us on:
@JoanSmithRealEstateFamily 
@JoanSmithRealEstateFamily 
Mrs. Joan Smith 
@JoanSmithKanata 
The Joan Smith Real Estate Family
Market Update
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).
Latest Mortgage Information
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:
- Are there indicators that inflation is moderating
- What is happening with the job market
- Is the economy slowing
- How committed is the Bank of Canada to managing inflation
- Once inflation starts to moderate historically how fast do rates fall
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.
Karen Lemieux
Mortgage Brokers Ottawa
Apply online: www.karenlemieux.com
karenl@mortgagebrokersottawa.com
License: 11759
Request A Home Evaluation Today
News & Updates
- Average rents in Canada soar above $2K for first time, CBC News, Dec. 14, 2022
- Housing starts drop 0.2% in November: CMHC, The Globe and Mail, Dec, 15, 2022
- Ottawa rental prices jump 18 per cent in 2022, Ottawa Citizen, Dec. 16, 2022
- Ban on foreign homebuying will carry $10K penalty, Financial Post, Dec. 21, 2022
- Enbridge launches EaaS Enbridge Sustain, Sustainable Biz, Dec. 19, 2022
- Interprovincial migration and affordability will put upward pressure on home prices in these Canadian cities next year, Royal LePage, Dec. 28
- New measures include tax incentive for new homebuyers, CBC News, Jan. 1, 2023
In the Community
It’s Not Too Late to buy a 50/50 ticket to support the Snowsuit Fund!
Last year’s winner took home Over $400K and this year’s jackpot is growing fast! Tickets can be purchased in increments of 5 tickets for $10, 20 tickets for $25, 100 tickets for $50 and 500 tickets for $100 at www.snowsuitfund5050.com. The Final Draw will take place on January 20, 2023.
It’s a Win Win Win – The more money raised, the more The Snowsuit Fund receives, the more the winner takes home and the more Ottawa kids kept warm.
Proudly powered by CHEZ 106, KiSS 105.3, CityNews 101.1, and Country 92.3.
Things to Do This Month
- Chamberfest Concert Series– Jan 21
- Michelangelo’s Sistine Chapel: The Exhibition– until Jan 22
- Capital Wedding Show – Jan 21, 22
- Ottawa Home & Remodelling Show– Jan 19-22
- Carleton Cup – Jan 28
- Rideau Canal Skateway – Dates to be announced
- Outdoor Skating – Rideau Hall – Jan 7-Mar 5
- Rink of Dreams – until Mar 31
- Dark Ice – until Feb 26
- Winterlude – Feb 3 – 20th
See more events:
Things to do in Ottawa this weekend & Ottawa Tourism
Things to consider when purchasing a home
Think about the kind of home that would support your lifestyle and ask questions like:
- How many bedrooms do we need?
- How easy is it to travel to work each day?
- What special features do we want in our home? (Big backyard? Rec room? Quiet neighbourhood?)
- What do we want nearby? (School? Playground? Walking and biking trails? Shopping? Entertainment? Golf?)
- What else does our home need in order to support our lifestyle?
As part of the buying process our Team will:
- 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.
Home Selling Advice
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.
Click here to learn more about our Seller’s Guide
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
Is it time to downsize?
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.
Closing Costs – Budgeting for Your Home Purchase
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.
The Psychology of Clutter & Tips to Help You
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.
Testimonials
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!
Kevin