April stats published by the Ottawa Real Estate Board confirm the market we have been feeling for the past couple of weeks. It is very inconsistent, some neighbourhoods and homes are having more action than others. We are watching the market to see how and if the trend continues. Overall the Ottawa area experienced a13% increase in the average price for residential homes year to date April 2022. However the number of houses and condominiums that sold in April this year, declined 21% when compared to April 2021.
We can see more people planning holidays and summer projects and feeling more comfortable. Our homes mean everything to us, Buyers and Sellers are still asking themselves if they have enough indoor and outdoor space. If you are still working from home, your lifestyle may have changed and you may need a different home environment or neighbourhood. We would be delighted to answer any questions for you. In this market, getting in touch with your mortgage professional is key so you are ready when the right home comes along.
Top 3 things on your to do list if you are thinking of going to market:
We are up to date on the local real estate market. We specialize in helping people right size, purchase investment property, estate sales, relocations. We are proud to say we are always accessible, offering open lines of communication, we keep it real and in perspective. We deliver answers to your questions, solutions to your problems, results based on your needs and timelines based on your schedule.
Enjoy the tulip festival which is coming soon!
Joan, Victoria & Luc
The Ottawa Real Estate Board reports 1,889 residential and condominium properties sold in April 2022 compared to 2,394 in April 2021, representing approximately a 21% decrease in units sold. Year to date (as of April 1, 2022) residential unit sales declined by 11.2% compared to the same time period in 2021, and condominium unit sales year to date (as of April 1, 2022) decreased 10.4% when compared with sales in 2021.
Year to date April 2022, the average price for a residential home in Ottawa is $830,588, a 13% increase from April 2021. For condominiums, the average sale price at the end of April was $469,603, an increase of 12.2% when compared with the same time last year.
For Kanata, unit sales in April 2022 (residential and condominium) were 164 compared to 236 sales in April 2021 (approximately a 30.5% decrease). For greater Stittsville, unit sales in April 2022 (residential and condominium) were 82 units compared to 112 units in April 2021 (approximately a 26.8% decrease).
In Kanata, the average sale price in April 2022 versus April 2021 has increased 14.7%, for all housing types. For greater Stittsville, the average sale price April 2022 versus April 2021, has increased 13.8%, for all housing types. (Source: April 2022 – Sales by District & Area, Residential and Condominium Property Classes, OREB MLS®, May. 1, 2022 – Report#3)
For the full report see “50 Years of Change in the Ottawa Market”
April residential inventory in Ottawa crept up to 1,304 homes for sale by the end of the month, representing about a 35.6% increase when compared to March 2022, and about a 9.3% increase when compared to April 2021. Condominium inventory rose to 393 units active at the end of the April compared to 286 in March 2002, representing about a 37.4% increase. However, this is about the same number of active condos when compared to the end of March 2021 (401 units), representing a decrease of about 2.0%. It is early to tell if the supply of homes and condos will continue to increase, we are still seeing price pressure in many neighborhoods and for specific homes. (Source: April 2022 – Ottawa Real Estate Board Inventory by Month – Residential and Condo, Monday, May. 2, 2022 – Report#7)
There is an old saying that the market hates uncertainly. The mortgage market is no exception. Fixed term rates have been moving up from historical lows since last fall and variable rates began the climb in the spring. Five year fixed term rates have moved up very quickly since February which has resulted in a higher qualification rate (the ratio of debt to income that lenders must use to qualify mortgage borrowers). As a result, clients really need to pay attention to the date which their rate hold expires. In February the qualifying rate was 5.25%, it is now close to 6.25% with many lenders ( the rate is the higher of the contract rate plus 2%, or 5.25% whichever is higher). Preapprovals for fixed rate mortgages that were provided in February will be expiring in June (the rate hold typically is for 120 days from the date of submission to the closing date). For someone putting an offer in today it is very likely that the closing date will be past the expiry date which means that current rates (including a higher qualification rate) will need to be used and purchasing power will be affected. For a family with a combined income of 128k that mortgage amount might be 55k lower (assuming they qualified for a mortgage of 600k at the lower rate).
If you have a preapproval, before you make an offer it would be very prudent to check with your lender to see if the preapproval rate still applies, particularly if you intend to put an offer in without a financing condition. You may also want to refresh your preapproval before expiry if you feel that you will not be able to close your purchase within the 120 day window. Currently you would still qualify for a variable rate mortgage using the lower qualifying rate, but if you wanted a five year fixed you would have to wait until after the purchase closed to convert to a fixed rate mortgage at whatever the rate is at that time.
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Gatineau home prices continue to attract Ontarians, despite $90,000 jump in one year , Royal LePage, May 5, 2022
Persistent demand coupled with low inventory drives 2022 home price forecast higher to 15%, Royal LePage, April 19,2022
Ottawa’s airport looks to regain altitude as airlines re-establish routes, new carriers enter market, Ottawa Business Journal, May 3, 2022
We have been very happy to support many youth hockey teams in the community over the years and have enjoyed seeing them grow and have fun with family and friends following them. It’s lots of work and time for their parents to support their journeys and success.
The two hockey teams we sponsored this year showed a great deal of effort and resilience and were glad to finally be back playing hockey.
We look forward to the upcoming season and giving our support to youth hockey.
Brokers/sales representatives or real estate brokerages are governed by the legal concept of “agency”. An agent is legally obligated to look after the best interests of the person they are working for. The agent must be loyal to that person.
We as brokers/sales representatives believe it is important that the people we work with understand what an agency relationship is.
In Real Estate, there are different possible forms of agency relationship:
You might be surprised to know which spaces in a home most buyers look at when viewing a property. If you’re preparing your home for sale, make sure to consider the following places that are likely to be checked out:
Inside closets. Buyers want to get a sense of the size and capacity of all your closets. Make sure they’re clean and well organized. Avoid the “overstuffed” look.
Basement. Do you think buyers will stick to the main room of your basement? Think again. Some interested buyers will also check out the furnace room, cold room, electrical box, and even crawl spaces.
Under the sinks. Buyers will definitely look under the kitchen sink. You can expect some buyers to open the doors of bathroom vanities as well. Make sure trash bins are empty and everything looks neat and clean.
Windows. Buyers often look out windows to assess views. You can’t change what they see, but you can ensure the window itself is clean.
Sides of the property. When it comes to outdoor space, the backyard has the biggest impact. So, do whatever you can to make it look its best. However, don’t neglect your side yard. Unsightly garbage bins, weeds, tree clippings, debris, etc. can quickly dampen a buyer’s initial enthusiasm for your property.
If you are thinking of selling, we are happy to visit your home to help you prioritize the items to do that will have the most appeal to Buyers and achieve top dollar for your home.Let us Help You Sell Your Home
As sales of electric vehicles (EVs) and hybrid/electric vehicles (HEVs) increase every year, purchasers will demand greater accessibility to charging stations. Of course, the most convenient place to recharge is at home.
The new Vacant Unit Tax (VUT) is an incentive in the City’s toolbox to help individuals and families find a safe place they can call home.
Staging involves setting up the furniture, art and accessories of each room so that your home looks as appealing as possible to buyers. It’s similar to what furniture stores do when they create displays of model bedrooms, kitchens, etc. When you’re staging your home, the primary bedroom is particularly important.
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!
“Joan Smith from Royal LePage is a household name in our family. So, when it was time to sell our house, “the lady with the hat” immediately came to mind. Her reputation when it comes to achievements, knowledge of the Kanata Real Estate world, and friendly, professional attitude is second to none. But what really impressed me at our first meeting was Joan’s thorough “comparative market analysis” which gave us a good idea of what to expect from a house sale in our neighbourhood under current market conditions. Joan’s detailed explanation of the selling process, her sound staging advice, and her thoughtful Covid precautions removed any stress and created a relaxed, friendly atmosphere.
I appreciated the Team’s extensive advertising on MLS and social media as well as their respectful negotiations and excellent communication skills. Questions and concerns were answered by phone or email within no time at all. Joan, Victoria, and Luc are passionate about their work, but not pushy which was important to me. Such a joy to work with a company that takes pride in their profession. The stunning photography and virtual tour emphasizing the areas of natural light and unique architectural features of the house so enamoured me that for a moment I wondered why I was even putting up the place for sale. A big thanks to Joan, Victoria, and Luc for selling our home in 24 hours!
Because of their expertise, I would highly recommend Joan Smith Real Estate Family to anyone thinking of selling a house. With many thanks and best wishes for continued success.”