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Kanata Real Estate Agents

Staying in Touch June 2024 Newsletter

Happy June & Father’s Day!

With June underway, we are happy to see that we are moving forward, demand is here and there is more supply of homes on the market. The Ottawa Real Estate Board reported 1,545 unit sales in May. Year to date, for the first five months of 2024, home sales increased 5.25% compared to the same period in 2023. The MLS® HPI composite benchmark price was $651,300 in May 2024, an increase of 1.2% from May 2023 and about a 3.3% increase from 3 months ago. Although May unit sales across Ottawa were lower than in May 2023, we see more new listings giving buyers more choice.

The first decrease in interest rates, by the Bank of Canada in some time, will give more confidence to the market and may help to trigger more activity in the Summer months by both purchasers and sellers. “It’s the first time in over four years Canadians have experienced a policy-driven rate cut, a drop in the cost of borrowing that was driven by policy makers as opposed to bond markets that can impact mortgage rates, so it’s a big deal,” said Phil Soper, CEO of Royal LePage.

A great deal of emphasis on property presentation to create a positive first impression is a must when selling your home, especially in Summer months when curb appeal is vital. Buyers have high expectations. We have the ability to view homes through the eyes of buyers and can advise and help you prepare your home for market. Read our blogs: Thinking of Selling Your Home? Consider These Top 3 Improvements First and Landscaping Tips To Increase Your Property Value.

It is important to us to continue to support our community and give back. This month our donation is to the Kanata Food Cupboard. We encourage you to remember this local organization that supports many in our community.

This month we’ve included:

Enjoy June and the many things to do in our beautiful City! Any questions give us a call or email, we would love to chat!

Joan, Victoria & Luc

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

Market Update

The Ottawa Real Estate Board reports 1,545 properties (residential & condominiums) sold in May 2024, approximately a 9.2% decrease in homes sold when compared to May 2023. However, home sales totaled 5,673 units for the first five months of the year, representing approximately a 5.2% increase for the same period in 2023. We may have seen some potential purchasers waiting for the Bank of Canada’s interest rate announcement to see if it would change how much they can afford.

The Ottawa Real Estate Board is now 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 $651,300 in May 2024, up approximately 1.2% from May 2023, up approximately 1.0% from April 2024. Benchmark price for single family homes was $736,000 up 1.1% on a year-over-year basis when compared to May 2023. The benchmark price for a townhouse/row unit was $517,500, up slightly at 2.1% compared to a year earlier. The benchmark apartment price was $425,000, representing a 2.0% increase from a year ago.

The average sale price for homes sold in May 2024 was $690,683, increasing 0.8% from May 2023. The year to date average price was $679,862, increasing by approximately 1.8% from the first 5 months of 2023. 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, April 2024 & May MLS® Home Sales in Ottawa Smooth and Cautious)

For Kanata, unit sales in May 2024 (all housing types) were 153, translating to approximately a 19.2% decrease when compared with May 2023. For greater Stittsville, unit sales in May 2024 (all housing types) were 87 units, representing approximately a 17.1% decrease from May 2023. In Kanata, the average sale price in May 2024 was $722,301 for all housing types, representing approximately a 0.4% decrease when compared to May 2023. For greater Stittsville, the average sale price in May 2024 versus May 2023, increased 1.4% to $799,491 for all housing types. (Source: Ottawa Real Estate Board Residential Market Activity and MLS® Home Price Index Report-Detailed, May 2024)

May residential inventory in Ottawa – 3,034 new properties (all housing types) on the market in May 2024, an increase of approximately 26.2% when compared to May 2023 and 23.2% above the five-year average for May. At the end of May, there were 3,552 homes for sale (all housing types), about a 59.4% increase when compared to the end of May 2023 and 72.2% higher when compared to the 5 year average for May.

At the end of May 2024, Ottawa’s inventory of homes (all housing types) was 2.3 months, up from 1.3 months at the end of May 2023 (this is the number of months it would take to sell current inventories at the current rate of sales activity). However, the key is too look at the inventory in your own neighborhood and those close by if you are thinking of making a change. Contact us if you would like an update on your neighborhood.

If you are thinking of making a change, now that the Bank of Canada has made a change in the interest rate, the first step is to speak with your mortgage broker to understand your financing options, terms of your existing mortgage and obtain a pre-approval. Obtaining a pre-approval letter is a useful tool when you find the right house and decide to make an offer. A market evaluation of your present home will provide input into your budgeting process, feel free to contact us.

Click here to read our Ottawa Market Update May 2024 – 50 Years of Change.

Source: May MLS® Home Sales in Ottawa Smooth and Cautious, June 6, 2024

June at the Rideau Canal in Ottawa
MLS HPI Composite Benchmark Price & Average Price, Ottawa May 2024

Latest Mortgage Information

Purchase Plus Improvements

The Purchase Plus Improvement program allows the home buyer(s) to purchase a property and include the cost of the improvements in their mortgage financing.  Improvements such as kitchen and bathroom renovations, hardwood floors, windows, painting, etc. all qualify. Generally anything that will improve the value of the home is acceptable. This program is also very good for homes that might require improvements that are more functional in nature, such as a new roof or a new septic system.

  • Eligible for homebuyers with as little as 5% down payment.
  • Eligible for conventional mortgages with 20% down payment or more.
  • Eliminates the need for a purchaser to obtain financing after the purchase to do the work, which can often be at a higher interest rate and/or higher payment.
  • Allows a purchaser to look at homes which they might not have considered otherwise i.e. older homes in established neighbourhoods that may require updating.
  • Allows the purchaser to put their own stamp on a property.

Process

The Purchase Plus Program requires the buyer to obtain quotes which are submitted to the lender for approval. When negotiating the terms of the purchase of the property, it is important that you include the ability for a contractor or trades person to have access to the property for the purpose of supplying a quote. The lender will then review the quote and improvements as part of the approval process. All of the numbers are based on the improved value. The maximum increased amount is 10-20% of the original purchase price depending on the lender and the insurer, but there can be some flexibility.

Example: Purchase Price is $300,000. Improvement estimate is $30,000. Mortgage numbers are based on $330,000. If the client requires 95% financing the 5% down payment would be $16,500 (5% of $330,000 not $15,0000 (5% of $300,000).

There are no advances until the work is completed and this is very important for the buyer to understand. If the contractor requires a deposit or interim payments, the buyer will need to have access to those resources until the work is complete and the mortgage funds are advanced. The funds are held back by the lawyer. Lenders typically require the work to be done within 120 days. Receipts are not always required (this depends on the lender) and an appraiser is sent out once the client confirms completion. The inspection by the appraiser will cost the client in the neighbourhood of $200.

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

News & Updates

In the Community

Things to Do on Father’s Day

Father’s Day is Sunday June 16th, and there are plenty of fun things to do to celebrate together. Here are a few local events & activities:

Click here for some more fun ideas!

Things to Do in June

See more events: Things to do in Ottawa this weekend & Ottawa Tourism 

Things to Consider When Buying a Rural Property

Are you considering purchasing a rural property? Getting away from the hustle and bustle of city life certainly has it’s appeal! When buying a rural property there are considerations to keep in mind that are different then when buying a property in the city. 

Here are some things to consider:

Well and Septic – In rural areas, many homes do not have connections to municipal water and sewer lines. Homeowners rely upon privately owned or communal (shared) wells as their drinking water source, and individual septic systems to treat and discharge their wastewater. Homeowners must ensure that their well water is safe to drink, and that their well and septic system are properly maintained. When you are purchasing a home with a private water supply (a well), there are 3 key items to consider: well system, water quantity and water quality. There are three common types of wells: dug, bored and drilled.

Other sources for energy – Some home owners have installed heat pumps, generators and other renewable energy sources like wind and solar power to assist with supporting power requirements

Click here to read our blog with more Things to Consider When Buying a Rural Property!

We know the Ottawa real estate market and have the expertise to help you find your new home in the neighbourhood suited to your lifestyle! 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.

 

Buyer Resources

Why Should You Downsize? And Steps to Take

Downsizing is about simplifying and changing your living arrangements to better fit your current and future needs. A larger home requires a lot of maintenance and may become a physical and financial burden. Physical changes may cause safety concerns and the need for a home with accessible options and features. As we enter our senior years and our lifestyle changes, it may be time to downsize or shall we say right-size to our lifestyle needs and preferences.

When downsizing it is important to review all of the housing options available such as Neighbourhoods and Housing Types. Click here to learn more!

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!

Sellers Resources

First Time Home Buyer? What You Should Know & How to Get Started

When buying your first home, it is important to ask yourself a few questions: How is your financial situation? How secure is your employment? What are you looking for in a home and neighbourhood? Here are some steps and resources to help you understand the process and options:

Landscaping

Landscaping Tips To Increase Your Property Value

Landscaping is one of the most important and easiest ways to increase your property’s value. Great curb appeal helps to create a great first impression. Think about when you have looked at houses for sale, what did you first notice? Below are some tips to help you get started.

staging

7 Primary Bedroom Staging Ideas

Staging involves setting up the furniture, art and accessories to help make your home look as appealing as possible to buyers. When you’re staging your home, the primary bedroom is particularly important, here are some simple staging tips worth trying

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

“Joan and Victoria did a careful market survey and gave us a price range to consider. They went through the house with us and helped us rearrange our furniture and art to show off the house features better. They responded quickly and helpfully to all of our questions. Their photographer created an excellent photo gallery and video. Joan’s many years of experience were evident throughout. The result was a dozen showings in the first three days, and two offers. We were very pleased with the whole process. It takes a lot of work to get a house ready to sell after you have lived in it for nearly forty years, but Joan’s team made it as nearly painless as possible.”

Al