March 2022 Edition
We are all looking forward to Spring and being able to enjoy the outdoors more and our gardens again. We are so thankful to live in this great country. Yes we have a few bumps here and there, but it is wonderful! Lets help those affected by the humanitarian crisis in Ukraine. Click here to make a contribution to the Canadian Red Cross.
The market is moving along with good price gains but it also has its challenges, for example if you are trying to change your lifestyle to rightsize or move to a larger home. We all know everything comes around, so timing is everything. If you are thinking of making a move in the future it is a good time to prepare your home for market and enjoy some of the new additions or renovations while you are waiting to move, whether that be a fresh coat of paint, updated flooring or furnace.
If you are curious about your neighbourhood, please don’t hesitate to ask us for information. We would be happy to answer questions about any neighborhood and give you a ball park value of what a typical home is selling for. When it comes to real estate, it’s smart to have a sense of what the market is doing and what is happening in neighbourhoods you like. This can help you in making a decision if you are contemplating a move.
We take pride in using all tools to market homes and share real estate & community information. Unfortunately one of our social channels got hacked and we are working to reconnect with you. We encourage you to follow us for the latest market information, new listings and community news on our social channels (click on them below).
Looking forward to having more personal interactions with you this year.
Joan, Victoria and Luc
The Joan Smith Real Estate Family
In the Community
We are so happy to support Harmony House on March 8th, International Women’s Day, with their great Foodie Friendraiser event to help the women and children at Harmony House. Proceeds go towards mental health programs for their residents all while supporting local food and beverage partners.
This year Harmony House is celebrating their 35th anniversary. The foodie kits are now sold out but you can still donate and attend the facebook virtual live event on March 8th at 6:30 pm. For more info on the virtual entertainment with inspiring interviews, exciting contests and more go to Rise Up Virtual Event
Things to Do This Month
- March break camps
- Fire & Ice Exhibit
- Support Local – Fortune Farms Maple Syrup
- Ski Resorts: Mount Pakenham , Calabogie, Camp Fortune, Mont Cascades, Vorlage, Sommet Edelweiss, Mont Ste. Marie
- City of Ottawa drop-in activities & recreation programs
- 613Flea in the Aberdeen Pavilion
- International Film Festival of Ottawa
- See more events at Things to do in Ottawa this weekend and Ottawa Tourism
Market Update
The Ottawa Real Estate Board reports 1,421 residential and condominium properties sold in February 2022 compared to 1,385 in January 2021, representing a 2.6% increase in units sold. Year to date (as of March 1, 2022) residential unit sales increased by 3.5% compared to the same time period in 2021, and condominium unit sales year to date (as of March 1, 2022) decreased 7.8% when compared with sales in 2021.
Year to date February 2022, the average price for a residential home is $812,883, a 15.9% increase from February 2021. For condominiums, the average sale price at the end of February was $458,107, an increase of 15.8% when compared with the same time last year.
For Kanata, unit sales in February 2022 (residential and condominium) are 131 compared to 123 sales February 2021 (approximately a 6.5% increase). For Stittsville, unit sales in February 2022 (residential and condominium) are 65 units compared to 54 units in February 2021 (approximately a 20.4% increase).
In Kanata, the average sale price February 2022 versus February 2021 has increased 8.2%, for all housing types. For Stittsville, the average sale price February 2022 versus February 2021, has increased 11.9%, for all housing types. (Source: February 2022 – Sales by District & Area, Residential and Condominium Property Classes, OREB MLS®, March. 1, 2022 – Report#3)
For the full report see “50 Years of Change in the Ottawa Market”
February residential inventory in Ottawa started off lower than 2021 (see graph) but crept up to 766 units, representing a 9.7% increase when compared to February 2021. The number of transactions in the month also increased substantially from January and more than in previous years. This may indicate an earlier Spring market, as reported by the Ottawa Real Estate Board. Condominium inventory did not experience the same gains with 230 units active at the end of the February compared to 286 in 2021, representing a decrease of 19.6%. The continued high demand and low inventory is resulting in price pressure and significant price increases.
Latest Mortgage Information
Based on the .25% increase in rate by the Bank of Canada we can expect prime to increase to 2.7% from 2.45%. This is expected to be the first of a number of increases this year, the goal being to tame inflation which is currently at 5.1%, the highest in decades. To put this in historical perspective, prime was at 3.95% before the pandemic. Many economists feel that there will be five more small increases this year, bringing prime to 3.95% by the end of 2022 with another two increases in 2023. Prime primarily affects home equity lines of credit, loans and unsecured lines of credit.
In terms of timing, the Bank of Canada does see inflation falling back to 3% by the end of 2022 and back to 2% by the end of 2023.
It is not known at this point what impact the conflict in Ukraine will have on interest rates.
Karen Lemieux
Mortgage Brokers Ottawa
www.karenlemieux.com
karenl@mortgagebrokersottawa.com
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News & Updates
- Committee approves tax on vacant residences, March 1, 2022, City of Ottawa
- Latest Mortgage Rates, Mortgage Brokers Ottawa
- The Right Honourable Michaëlle Jean to receive Key to the City of Ottawa on International Women’s Day, March 4, 2022, City of Ottawa
- 4 In 10 Parents of Young Ontario Homeowners Financially Helped Their Child Achieve The Dream Of Home Ownership, Feb. 22, 2022, Ontario Real Estate Association
- Getting inflation back to target, March 3, 2022, Tim Macklem Governor of the Bank of Canada
- Ottawa’s 20 Hottest Neighborhoods, March 3, 2022, Ottawa Business Journal
How Much Time Should You Spend Viewing Homes?
Asking how much time you should spend viewing properties and houses for sale whether they be in the suburbs like Kanata or Stittsville, downtown Ottawa or surrounding rural communities is a little like asking, “How long should I spend trying on shoes? The answer seems obvious: As long as it takes to make a decision! However, in the present competitive market and viewing times limited due to covid, having a prioritized list of key criteria (about five criteria) that are important to you is vital and it will also make the decision process easier.
There are basically three stages to viewing a property: Macro, Micro and Professional.
When you view a home on a macro basis, you’re looking at it from an overall perspective. For example, you may do a general walk-through to get a first impression and determine if the property has the basic features you need, such as the layout, number of bedrooms and the size of the backyard. Macro viewing is often the fastest stage in the viewing process and can sometimes take just a few minutes.
If you like what you see, then it’s onto the micro stage. At this stage you take a closer look at the details of the property. You might, for example, spend extra time in the master bedroom imagining how your furniture would look and fit or looking at the home’s foundation. The micro stage takes longer simply because the home is now on your shortlist. You’re interested and are considering making an offer. If you can, second showings of the property can assist in making a decision and collecting more information.
Finally, the professional stage involves getting a qualified home inspector to go over the property. With the high degree of competition in the present market, you may consider doing a pre-inspection before submitting an offer. If you decide not to include a building inspection condition in your offer, you may want to have a building inspection after moving into the home.
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.
Let us Help You Sell Your Home
How Emotions Can Get in the Way of Selling
Like most homeowners, you probably don’t think of your property as just a building with rooms and a backyard. To you, it’s much more than that. It’s a home with memories. You recall laughter with family and friends. It’s emotional. However, buyers don’t want to buy your “home”. What they really want to buy is a property that has the potential to become their home.
How do you determine what your home will likely sell for?
Your home’s probable selling price is influenced by the factors such as the type and style of your home, the condition of your home. (Is it “move in” ready?), have major items (roof, furnace, windows, kitchen, baths, etc.) been updated? These factors and others, especially recently sold homes in your neighborhood, need to be considered.
Finding an Home Improvement Contractor
You can’t call yourself a dentist unless you have specific hard-earned credentials. Choosing a reputable contractor can be more difficult. This article gives insights on things to ask a potential contractor about, like licenses and other credentials. Some contractors have accreditations from professional and trade associations.
Featured Homes for Sale, Rent & Recently Sold
Real Estate has surprised us in many ways. Prices that Sellers are receiving are unbelievable. We are following the market closely to see how the supply of homes on the market changes. We believe that it is best to try to purchase your next home in the same market as you sell your present home so that your experience relatively the same market gain. We would be happy to answer any of your questions about the market. Contact Us!
Testimonials
The team at Joan Smith Real Estate have been professional and helpful. We have had a stress-free selling experience!
Amy & Josh
Luc was great and very accommodating. His knowledge of the area and vast experience made our house hunt the best it could be.
Claude