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Kanata Real Estate Agents

Staying in Touch January 2024 Newsletter

Happy January & New Year!

The year 2023 has had many milestones and changes. One important and recent change regarding real estate is the updated Trust in Real Estate Services Act (TRESA) in the province of Ontario. Read our blog on the changes and what they mean to you and the new Information guide, please call/email if you have questions. The key changes are: designated representation is now defined, self representation (no customer service), changes to the definition of multiple representation, sellers can choose to share details of any offer received – provided there is no clause in an offer stating they cannot, and required signed acknowledgment of the information guide.

We saw the supply of homes stay low in greater Ottawa and this affected buyers’ choice. We do expect the interest rates to come down. Phil Soper CEO of Royal LePage said in a statement recently “the majority of Canadians acknowledged that the ultra low interest rate era is dead and gone”. Jason Ralph, Broker of Record for Royal LePage Team Realty Ottawa stated “Even a modest drop in interest rates could spark a flurry of buying activity”. This will help encourage those wanting to sell and purchase to implement their plans, which we believe is the right move.

In getting a home ready for market, we have seen that sometimes sellers go above and beyond decluttering and invest money in improvements that are hard to recuperate. For those thinking of making a change, see our blog on decluttering and donating and feel free to contact us and we can help you prioritize and guide you on the necessary changes to get top dollar for your home.

Canada’s population is growing which supports that real estate is an excellent investment. My experience indicates in changing times we, as realtors®, must remain positive and focus on the opportunities.

This month we’ve included:

  • Update on the Ottawa market and Mortgage information on Pre-approval Requirements
  • Articles: “Start the Year Off Decluttered & Donate!“, “Selling your home this year? Start the process now” and Top Renovations & Improvements to Increase Property Value
  • Market news and Upcoming community events

Remember us as your real estate specialist, we are never too busy for your questions or your referrals of family and friends.

Looking forward to seeing you in 2024!

Joan, Victoria & Luc

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Follow us on:

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

Market Update

The Ottawa Real Estate Board reports 565 properties (residential & condominiums) sold in December 2023, approximately a 7.6% increase in homes sold when compared to December 2022 and approximately 22% less when compared to November 2023 (724 units sold). Year to date (as of January 1, 2024) home sales totaled 11,978 units (for all housing types) in 2023, an 11.0% decrease when compared to 2022 for the same time period.

The Ottawa Real Estate Board will now be 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). We will start to use this measurement and also provide some average data for Ottawa. The overall MLS® HPI composite benchmark price was $623,900 in December 2023, down 0.8% from November 2023, up 2.7% from December 2022. Benchmark price for single family homes was $704,900, up 2.7% when compared to December 2022. The benchmark price for a townhouse/row unit was $481,100, up 4.2% from a year-over-year basis in December. The benchmark apartment price was $417,200, representing a 2.1% increase from a year ago.

The average sale price for homes sold in December 2023 was $632,487, an increase of 1.7% from December 2022. Year to date Ottawa average price was $667,794, a decline of 5.5% when compared to the 2022. Keep in mind, its important to look at what is happening in your neighborhood and with comparable homes. (Source: Ottawa Real Estate Board, Residential Market Activity & MLS® Home Price Index Report – Highlight, December 2023)

For Kanata, unit sales in December 2023 (all housing types) were 51 compared to 69 sales in December 2022 (approximately a 26.1% decrease). For greater Stittsville, unit sales in December 2023 (all housing types) were 19 units, representing approximately a 24.0% decrease from December 2022. In Kanata, the average sale price in December 2023 was $691,296 for all housing types, a 3.4% increase when compared to December 2022. For greater Stittsville, the average sale price December 2023 versus December 2022, increased 12.1% to $793,394 for all housing types. (Source: December 2023 – Ottawa Real Estate Board Residential Market Activity and MLS® Home Price Index Report-Detailed, December 2023)

December residential inventory in Ottawa – 523 new listings (all housing types) in December, a decrease of approximately 12.4% when compared to December 2022. At the end of December, there were 1,844 homes for sale (all housing types), about a 3.0% increase when compared to the end of December 2022 and a 33% decrease when compared to November 2023 (2,752 active listings). It will be interesting to see how many of the properties that were on the market, come back on the market in January.

At the end of December 2023, Ottawa’s inventory homes (all housing types) was 3.3 months, a decrease from 3.4 months at the end of December 2022 (this is the number of months it would take to sell current inventories at the current rate of sales activity).

The Ottawa market ended 2023 fairly balanced, a positive indicator for 2024. As we move through January we will start to see more new properties come on the market. The Bank of Canada interest rate announcement near the end of January will give an early signal as to what the Spring market may be like. If you are planning to make a change, it is a good time to prepare your home and understand your budget, especially if you need to sell before you purchase. If you’re not sure if you need to sell to purchase, speak to us and your mortgage broker. The key again is to sell and purchase in the same type of market. For first time buyers, getting your pre-approval in place is an important first step, do it now, before we start to see further interest rate changes and more people enter the market. Click here to read our Ottawa Market Update December 2023 – 50 Years of Change.

Source: Ottawa MLS® December Home Sales Close Out Year in Steady State, OREB, January 4, 2024)

Ottawa Dec 23 - HPI & Avg Price graph

Latest Mortgage Information

What are Mortgage Pre-Approval Requirements

Mortgage pre-approval is more that just getting an interest rate quoted in a first meeting or via an on-line tool. A detailed review of your income, debts and credit history are required to ensure confidence with your pre-approval and that there are no surprises after you have an accepted offer on a property. When completing a mortgage pre-approval it is important to ensure accurate information is obtained, as if any of these items are inaccurate it can greatly effect the pre-approval and could leave a client in a situation where they default on their purchase contract.

Items required for pre-approval are highlighted below, keep in mind, they may be subject to additional requests;

  • Copy of most recent pay stub– for full time salary employee
  • For self employed individuals – 2 years of Notice of Assessments with coinciding T1 Generals 
  • For hourly employees without guaranteed hours– a recent paystub, employment letter along with the last 2 years of T4s, Notices of Assessment and T1 Generals
  • For Canada Child Benefit income– a copy of your most recent government notice showing your CCB benefit amount and a bank account statement (with name account number) showing the direct deposit of the CCB amount. I’ll also need a copy of birth certificates to show the child(ren)’s ages.
  • For Pension income-T4A slips plus a bank account statement (with name and account number) showing the direct deposit of the pension.
  • Down Payment and Closing Costs– via 90 day bank/investment history or statement showing where the funds are being held. All deposits or transfers $2000+ will require additional information or statements, ie- If you are transferring large amounts within accounts, a 90 day history will be requested for every account used. All statements must show your name and account number for ownership. Statements cannot be redacted or filtered in anyway. **closing cost requirement with all lenders is 1.5% of the purchase price. This full cost may not be applicable in your situation if you are entitled to the land transfer tax rebate but is still required to show the funds are available aside from the funds being used for down payment**

Even after the above items have been provided and the pre-approval letter is issued, it is still subject to final review by the lender once an accepted offer is obtained. Click here to continue to read the article

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

In the Community

The hockey season is well underway! We continue to support the Kanata Blazers, this year the U15AA Team and wish them much success this season!
Learn more about the Kanata Blazers and programs offered.

We are also very excited to see the PWHL (The Professional Women’s Hockey League ) starting up this week, can’t wait to go to a game, Go Ottawa, Go!
Click here for more details on schedules, teams etc.

Changes in Ontario Real Estate Services  – Trust in Real Estate Services Act

The Real Estate and Business Brokers Act (REBBA) has been updated by the Real Estate Council of Ontario (RECO). The new act is now referred to as the Trust in Real Estate Services Act (TRESA). As part of these changes there is a new information guide by RECO, “Working with a real estate agent: Things you need to know.

The information guide describes: working with a real estate agent and the benefits as well as what to expect and the responsibilities of clients, knowing the risks of representing yourself, what to look for before your sign a contract with a real estate brokerage, understanding multiple representation, and how to raise a concern with a brokerage and with RECO.

Learn more by clicking here

Contact us with your real estate questions! We would be happy to provide you with an update on neighborhood market values and housing options throughout Ottawa. You can count on our team of experienced Ottawa REALTORS® to guide you through the process every step of the way!

 

Selling your home this year? Start the process now

Planning on selling your home this year? This is the time to start the home selling process, here are some suggestions of tasks that you can do now. In fact, you’ll save yourself a lot of work and get ahead of the game if you start planning now. What’s that old saying? The early bird gets the worm! In this case, by starting the process this month, you’ll be in excellent shape when you’re ready to list this year.

Click here for a few examples of what you can do to get the process started

Selling and buying a home at the same time is a complex transaction. As experienced REALTORS® in Kanata and Ottawa, we can guide you every step of the way. We have professional contacts that can assist you, from a handyman, mortgage broker, inspectors, lawyers, etc.

Start the Year Off Decluttered & Donate!

Start the year off fresh by decluttering your home, it will give you a great feeling of accomplishment! Here are some tips and a list of some of the local organizations in Ottawa where you can donate your used items.

Why Should a House Stay on the Market & When Should I Put it On?

Many ask these questions in challenging markets, should I keep my house on the market or take it off and put it on in the Spring Market when more buyers are looking? Learn from our experience in this article.

Top Renovations & Improvements to Increase Property Value

From kitchen upgrades to bathroom renovations, learn about our top recommendations for increasing your home’s property value. Successful renovations are about making smart choices.

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

The team at The Joan Smith Real Estate Family are phenomenal. We had such a great experience working with them on selling our first property that we chose them again to help sell our current property and purchase our forever home. We worked quite a bit with Luc, and he’s such a stand up guy. Always available when you have any questions and was always accommodating when it came to showing our property or wanting to see a property. To the Smith team, you’re superstars, thanks for everything you’ve done for me and my family.

Nick