Bank of Canada keeps rates on hold

Outlook still clouded by uncertainty

The Bank of Canada announced on May 24th, 2017 that it was keeping its trend-setting target overnight lending rate unchanged at 0.5 per cent.

The Bank indicated inflation remains below its 2% target and that the Canadian economy still has plenty of slack. Additionally, while recognizing a number of encouraging economic developments such as improving business investment, job growth and strong consumer spending, it also expects economic growth will slow down and economic “uncertainties… continue to cloud the global and Canadian outlook.”

Given U.S. trade policy uncertainties, slower expected economic growth and tame inflation, it is highly unlikely that the Bank will hike its trend-setting overnight lending rate this year. However, an expected increase in Canadian bond yields and recent regulatory increases in capital requirements for mortgage lenders may cause longer term fixed mortgage interest rates to edge higher later in 2017.

As of May 24th, 2017, the advertised five-year lending rate stood at 4.64 per cent, unchanged from both the previous Bank rate announcement on April 12th and from one year ago.

The next interest rate announcement will be on July 12th, 2017. It will be accompanied by the release of the Monetary Policy Report, which will update the Bank’s economic forecast.

(CREA 24/05/2017)



April 2017

Ontario's Fair Housing Plan

Ministry of Finance

Ontario's Fair Housing Plan introduces a comprehensive package of measures to help more people find affordable homes, increase supply, protect buyers and renters and bring stability to the real estate market. Read More at the Government of Ontario Website



Google Earth Timelapse shows 30 years of change
http://ottawacitizen.com/news/local-news/video/0_yrtss6ib

Record-breaking June for Ottawa resales

Ottawa, July 6, 2016 - Members of the Ottawa Real Estate Board sold 1,985 residential properties in June through the Board’s Multiple Listing Service® System, compared with 1,691 in June 2015, an increase of 17.4 per cent. The five-year average for June sales is 1,717.

“Sales this past month contributed not only to the highest June on record, it also turned out to be the highest sales in any month ever in the history of the Ottawa market,” remarked Shane Silva, President of the Ottawa Real Estate Board. “The closest comparable sales figures are from May 2009 with 1,967 units sold. Normally the resale market has a slight dip in units sold from May to June each year. May is routinely the peak month for units sold; however, this year June sales increased by 3.3 per cent over May.”

“It’s hard to say what fuelled this surge for June. It could be a combination of great weather and buyer activity from other markets, or it could be an anomaly. We will be closely watching the trend over the summer when sales typically slow down as buyers turn their attention to summer activities,” Silva went on to explain.

 June sales included 331 in the condominium property class, and 1,654 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases, and timeshares. The residential property class includes all other residential properties.

“Year-to-date units sold for the first half of 2016 are also performing quite well compared to the first half of last year, up 5.4 per cent. While year-to-date average sale price remains the same compared to last year,” says Silva. “A total of 3,220 residential and condo properties were listed in June, capping the month off with approximately 8,300 properties on the market, down 11.5 per cent from June 2015.”

The average sale price of a residential-class property sold in June in the Ottawa area was $399,382, a decrease of 1.3 per cent over June 2015. The average sale price for a condominium-class property was $264,913, a decrease of 2.4 per cent over June 2015. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

“Residential two-storey and bungalows continue to have the highest concentration of buyers in June,” says Silva. “In addition to residential and condominium sales, OREB Members have assisted clients with renting over 1,500 properties since the beginning of the year.”

– 30 –

Second-best April on record for Ottawa resales

Ottawa, May 5, 2016 - Members of the Ottawa Real Estate Board sold 1,714 residential properties in April through the Board’s Multiple Listing Service® system, compared with 1,567 in April 2015, an increase of 9.4 per cent. The five-year average for April sales is 1,568.

“The Ottawa resale market continued its steady pace upwards in April, making it the best April for unit sales on record since 2010,” says Shane Silva, President of the Ottawa Real Estate Board. “Units sold are up 548 since March, increasing in both the residential and condominium property class.”

April’s sales included 264 in the condominium property class, and 1,450 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“In April, 3,644 homes were listed, up 13.8 per cent since March, and down by 2.8 per cent over April 2015,” says Silva. “Inventory levels at the end of the month remain healthy heading into, what is normally, the most active month of the year for Ottawa Real Estate Board Members.”

The average sale price of a residential-class property sold in April in the Ottawa area was $403,603, an increase of 0.2 per cent over April 2015. The average sale price for a condominium-class property was $261,017, a decrease of 1.8 per cent over April 2015. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

“The hottest segments in our market for April were sales in the $300,000 to $400,000 price range, followed by the $200,000 to $300,000 price range,” says Silva. “Residential two-storey and bungalows have the highest concentration of buyers in April. In addition to residential and condominium sales, OREB Members have assisted clients with renting 937 properties since the beginning of the year.”

– 30 – 

 

March resale market springs into action

Ottawa, April 19, 2016 - Members of the Ottawa Real Estate Board sold 1,166 residential properties in March through the Board’s Multiple Listing Service® system, compared with 1,200 in March 2015, a decrease of 2.8 per cent. The five-year average for March sales is 1,220.

 “We are definitely seeing a resale market increase from the previous month, with 256 more properties sold in March over February,” says President of the Ottawa Real Estate Board, Shane Silva. “Properties are starting to sell faster, indicating that we are heading into our busy spring market.”

 March’s sales included 221 in the condominium property class, and 945 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

 “In March, 3,203 homes were listed, up 38.6 per cent since February, and inventory on hand at the end of March also rose by 17.5 per cent from last month,” says Silva. “Although there is a slight dip in units sold compared to last year, average price remains steady keeping the Ottawa resale market healthy and strong. Canada’s capital continues to be a great place to buy and sell real estate.”

 The average sale price of a residential-class property sold in March in the Ottawa area was $394,951, an increase of two per cent over March 2015. The average sale price for a condominium-class property was $258,714, an increase of 2.4 per cent over March 2015. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

“The hottest segments in our market continues to be in the $300,000 to $400,000 price range, followed by the $200,000 to $300,000 price range,” says Silva. “Residential two-storey and bungalow homes, and one level condo properties have the highest concentration of buyers in March. In addition to residential and condominium sales, OREB Members assisted clients with renting 695 properties since the beginning of the year.”

The Ottawa Real Estate Board is an industry association of over 3,000 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

Important information

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board's internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca.



 -30-

Extra day in leap year causes jump in sales for February

Members of the Ottawa Real Estate  Board sold 911 residential properties in February through the Board’s Multiple  Listing Service® system, compared with 850 in February 2015, an increase of 7.2  per cent. The five-year average for February sales is 908.

“Although the weather was very  unpredictable this month, with many highs and lows and several winter storms,  the Ottawa resale market only saw activity pick up,” says President of the  Ottawa Real Estate Board, Shane Silva. “Residential and condo sales combined  increased by 52.3 per cent since last month. However, we need to factor in the  leap year, which added an extra day to the month of February, and 46 sales on  that day alone.”

February’s sales included 199 in the  condominium property class, and 712 in the residential property class. The  condominium property class includes any property, regardless of style (i.e.  detached, semi-detached, apartment, townhouse, etc.), which is registered as a  condominium, as well as properties which are co-operatives, life leases and  timeshares. The residential property class includes all other residential  properties.

“In February, 2,312 homes were  listed, up 26.6 per cent since January, and inventory on hand at the end of  February rose by 10.7 per cent since January,” says Silva. “We’re starting to  see more homes coming onto the market in preparation for the busy spring  selling season. If you’re thinking of putting your home on the market, this is  a great time to do so.”

The average sale price of a  residential-class property sold in February in the Ottawa area was $384,632, an  increase of 1.2 per cent over February 2015. The average sale price for a  condominium-class property was $249,727, a decrease of 6.8 per cent over  February 2015. The Board cautions that average sale price information can be  useful in establishing trends over time but should not be used as an indicator  that specific properties have increased or decreased in value. The average sale  price is calculated based on the total dollar volume of all properties sold.

“The highest concentration of  properties sold continues to be in the $300,000 to $400,000 price range,  followed by the $200,000 to $300,000 range,” says Silva. “These price ranges  continue to have the highest concentration of properties sold – residential and  condo – while two-storey, bungalow, and one-level condos have the highest  concentration of buyers. In addition to residential and condominium sales, OREB  Members assisted clients with renting 414 properties since the beginning of the  year.”

The Ottawa Real Estate Board is an industry association of over 3,000 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.


         

Important information

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board's internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca.


-30-

Ottawa resale market eases off with cooler January weather 

Ottawa, February 3, 2016 - Members of the Ottawa Real Estate Board sold 601 residential properties in January through the Board’s Multiple Listing Service® system, compared with 626 in January 2015, a decrease of four per cent. The five-year average for January sales is 618.

“The market momentum gained from the warmer weather in the latter part of 2015 has eased off with the arrival of typical winter weather in January,” says President of the Ottawa Real Estate Board, Shane Silva. “We are seeing a drop in the number of residential and condo properties listed this January over the year before. However, the number of properties listed almost doubled the amount listed in December – a normal occurrence at the beginning of the year as people begin to plan for the year ahead.”
 
January’s sales included 129 in the condominium property class, and 472 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.
 
“Residential unit sales this month were down, while condominium unit sales were up, over last year,” says Silva. “Residential two-storey and bungalow homes continue to have the highest concentration of buyers, with three-storey homes increasing in sales by over 50 per cent since this time last year. Two-storey condominium properties had a similar increase, showing the same amount of unit sales as one-level properties.”
 
The average sale price of a residential-class property sold in January in the Ottawa area was $386,839, an increase of 4.6 per cent over January 2015. The average sale price for a condominium-class property was $247,205, a decrease of 1.3 per cent over January 2015. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.
 
“A possible explanation for the increase in residential average sale price this month over last year is that the amount of properties sold over $1 million doubled that of last year, with six properties sold this month,” notes Silva. “Nevertheless, the hottest segments of our market in January were sales in the $300,000 to $400,000 range, followed closely by the $200,000 to $300,000 range. In addition to residential and condominium sales, OREB members assisted clients with renting 200 properties in January.”
 
– 30 – 


 Ontario Real Estate Trends for 2016


Methodology: These are some of the findings of an Ipsos Reid online poll of 1,001 Ontarians conducted from October 30, 2015 – November 2, 2015 on behalf of the Ontario Real Estate Association. The Ontario Home Ownership Index: A composite measure designed to reflect Ontarians' overall views of the residential real estate market and home ownership in Ontario.


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Record-breaking December, contributes to a strong 2015

Ottawa, January 6, 2016 - Members of the Ottawa Real Estate Board sold 703 residential properties in December through the Board’s Multiple Listing Service® System, compared with 638 in December 2014, an increase of 10.2 per cent. The five-year average for December sales is 653. The total number of residential and condo units sold through the Board’s MLS® System throughout all of 2015 was 14,658, compared with 13,919 in 2014, an increase of 5.3 per cent. Separately, residential and condo unit sales each outperformed the 2014 numbers.

“Looking back at the 2015 market, we started the year off with extreme cold temperatures in the first quarter of the year, but that didn’t stop homebuyers,” says new President of the Ottawa Real Estate Board, Shane Silva. “We saw the busy spring selling season pick up as early as March this year, and continue well throughout the summer, with a small dip in July, followed by record-breaking sale numbers in September. Three months later, December broke the record for the highest number of residential and condo properties sold at 703 units, only comparable to 2011, when 699 properties sold.”

December’s sales included 160 in the condominium property class, and 543 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“The listing inventory for both residential and condos trended higher all year, showing signs of tapering off in October,” says Silva. “Increased inventory levels contributed to the market favouring Buyers for much of the year; however as the inventory levelled out in the fall, we moved into more balanced conditions. Cumulative days on market increased to 109 days in December, while the average for the year comes in at 86 days. Average residential sale prices are up slightly over last year, which is great for the Ottawa market. All combined, these indicators point to a stable real estate market.”

The average sale price of a residential-class property sold in December in the Ottawa area was $386,961, an increase of 5.5 per cent over December 2014. The average sale price for a condominium-class property was $250,393, a decrease of 7.5 per cent over December 2014. The year-to-date numbers for the average residential sale price in 2015 was $391,940, an increase of 1.9 per cent over 2014. While the average condominium sale price was $259,691, a decrease of 1.5 per cent over 2014. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

 “A trend all year long, the hottest segments of our market are properties sold in the $300,000 to $400,000 price range, with 31.6 per cent of the year’s sales, followed by the $200,000 to $300,000 range, with 26.2 per cent of the year’s sales” says Silva. “In addition to residential and condominium sales, OREB Members assisted clients with renting 181 properties in December, and over 3,000 properties this year.”

– 30 –



Report for 2016 - RE/MAX (Ottawa Exerpt Below)
Link to the complete document HERE
REMAXHousingMarketOutlook2016_ottawa_pg1.jpg

REMAXHousingMarketOutlook2016_ottawa_pg2.jpg

Mild weather and post-election enthusiasm spurs on homebuyers

Ottawa, December 3, 2015 - Members of the Ottawa Real Estate Board sold 990 residential properties in November through the Board’s Multiple Listing Service® System, compared with 891 in November 2014, an increase of 11.1 per cent. The five-year average for November sales is 944.

“Mild temperatures in November, combined with increased activity post-election, were key factors in the Ottawa resale market performing exceptionally well in November,” says David Oikle, President of the Ottawa Real Estate Board. “The positive increase in condo sales may be explained by buyers moving to Ottawa to accept positions with the new government. There may have also been some pent up demand of people who chose to sit on the sidelines until after the election was over.”

November’s sales included 199 in the condominium property class, and 791 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“The condo market has picked back up over the past few months – a very positive change from the first half of the year, and now year-to-date condo sales have surpassed the numbers of units sold in 2014,” says Oikle. “Inventory levels are balancing out, cumulative days on market increased to 104 days, and average residential sale prices remain steady. This is very typical of a market that’s heading into the winter season.”

The average sale price of a residential-class property sold in November in the Ottawa area was $380,761, a decrease of 0.4 per cent over November 2014. The average sale price for a condominium-class property was $275,332, an increase of 9.9 per cent over November 2014. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

 “The highest concentration of properties sold remains in the $300,000 to $400,000 price range, followed very closely – behind by only 26 properties – the $200,000 to $300,000 range,” says Oikle. “In addition to residential and condominium sales, OREB members assisted clients with renting 247 properties in November, and over 2,800 since the beginning of the year.”

– 30 –



October Home Buyers weren’t spooked by election results.

Ottawa, November 4, 2015 - Members of the Ottawa Real Estate Board sold 1,161 residential properties in October through the Board’s Multiple Listing Service® System, compared with 1,119 in October 2014, an increase of 4 per cent. The five-year average for October sales is 1100.

“Our October numbers show we outpaced last year and the five year average,” says David Oikle, President of the Ottawa Real Estate Board. “Buyer activity was expected to taper off leading up to the Federal Election but it didn’t seem to affect our overall performance by very much.”

October’s sales included 202 in the condominium property class, and 959 in the residential property class. Our year to date sales trend is also solid compared to last year with residential property class sales up almost 6% from 2014 and condominium property sales on par with last year.

“Ottawa’s resale market continues to be a stable environment. Inventory has continued to decline since the busy spring market last May, bringing us back into balanced territory,” says Oikle. “Cumulative days on market also came down slightly to 86 days from 93 days
in September. In addition, the average sale price remains quite steady.”


The average sale price of a residential-class property sold in October was $380,075 which is an increase of 2.8 per cent over October 2014. The average sale price for a condominium-class property in October has dropped by 13% from $290,739 to $251,177; however, the year to date average price of $258,995 is more in line with the current average. This in fact illustrates why the Board cautions that the average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.


“While the highest concentration of properties sold continues to be in the $300,000 to $400,000 price range, followed closely, again, by the $200,000 to $300,000 range, there were also a good number of sales in the $500,000 to $750,000 price range in October.” says Oikle. “In addition to residential and condominium sales, OREB members assisted clients with renting 223 properties in October, and over 2500 since the beginning of the year.”

 

– 30 –


Best September on record for number of Ottawa resales

Ottawa, October 5, 2015 - Members of the Ottawa Real Estate Board sold 1,244 residential properties in September through the Board’s Multiple Listing Service® System, compared with 1,131 in September 2014, an increase of 10 per cent. The five-year average for September sales is 1,137.

“Ottawa Real Estate Board members continued their active summer into a busy fall,” says David Oikle, President of the Ottawa Real Estate Board. “In fact this September marks the best September on record for the number of units sold in the Ottawa resale market. There was a possibility that the federal election campaign might affect the local real estate market, but this does not appear to have been the case thus far.”

September’s sales included 221 in the condominium property class, and 1,023 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“Inventory levels continued to decline; by over 4 per cent since last month, bringing the Ottawa resale market into balanced territory,” says Oikle. “Cumulative days on market increased slightly to 93 days, up from 89 days in August. In addition, the average sale price remains steady.”

The average sale price of a residential-class property sold in September in the Ottawa area was $385,142, an increase of 0.5 per cent over September 2014. The average sale price for a condominium-class property was $257,303, an increase of 1.3 per cent over September 2014. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

“The highest concentration of properties sold continues to be in the $300,000 to $400,000 price range, followed closely, again, by the $200,000 to $300,000 range,” says Oikle. “In addition to residential and condominium sales, OREB members assisted clients with renting 250 properties in September, and over 2,300 since the beginning of the year.”

 

– 30 –


Strong summer performance for Ottawa's resale market

(September, 2015) Members of the Ottawa Real Estate Board sold 1,279 residential properties in August through the Board’s Multiple Listing Service® System, compared with 1,200 in August 2014, an increase of 6.6 per cent. The five-year average for August sales is 1,234.

“Ottawa Real Estate Board members had a busy August, with units sold coming in higher than the five-year average and a healthy increase from last year’s sales,” says David Oikle, President of the Ottawa Real Estate Board. “In addition to an increase in units sold, inventory levels of residential and condominium properties dropped by 5.3 per cent since last month, and cumulative days on the market was an average of 89 days.”

August’s sales included 259 in the condominium property class, and 1,020 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

The average sale price of a residential-class property sold in August in the Ottawa area was $379,946, a decrease of 0.1 per cent over August 2014. The average sale price for a condominium-class property was $244,801, a decrease of 7.3 per cent over August 2014. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

“It is important to note that the increase in units sold is for both residential and condominium properties,” says Oikle. “Also, we continue to see an increase in the number of condominium units sold in comparison to 2014, and the year-to-date condominium sales are now close to on par with last year.”

“The majority of buyers in Ottawa continue to buy properties in the $300,000 to $400,000 price range, closely followed by the $200,000 to $300,000 range,” says Oikle. “In addition to residential and condominium sales, OREB members assisted clients with renting 295 properties in August, and over 2,000 since the beginning of the year.”

The Ottawa Real Estate Board is an industry association of over 3,000 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

Important information

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board's internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca.

Ottawa Real Estate Board

Visit external site

President
David Oickle






Typical summer resale market in Ottawa

Ottawa, August 6, 2015 - Members of the Ottawa Real Estate Board sold 1,436 residential properties in July through the Board’s Multiple Listing Service® system, compared with 1,440 in July 2014, a decrease of 0.3 per cent. The five-year average for July sales is 1,380.

“Last July was the second best on record, and this July was only four units short of that record, coming in well above the five-year average,” says David Oikle, President of the Ottawa Real Estate Board. “Overall, the Ottawa resale market has been performing quite well with no major fluctuations in units sold and average sale price.”

July’s sales included 271 in the condominium property class, and 1,165 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“We are seeing a slight increase in condominium sales this month – a positive change,” says Oikle. “The average cumulative days on market increased slightly to 78 days, compared to 74 last month. Inventory levels remain high, meaning we continue to be in a Buyer’s market.”

The average sale price of a residential-class property sold in July in the Ottawa area was $394,889, an increase of 4.5 per cent over July 2014. The average sale price for a condominium-class property was $255,102, a decrease of 2.6 per cent over July 2014. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

“The $300,000 to $400,000 price range continues to have the highest concentration of properties sold, followed by the $200,000 to $300,000 range and then the $400,000 to $500,000 range,” says Oikle. “Two-storey residential properties continue to have the highest concentration of buyers in Ottawa. In addition to residential and condominium sales, OREB members assisted clients with renting 344 properties in July, and 1,829 since the beginning of the year.”

– 30 –
The Ottawa Real Estate Board is an industry association of over 3,000 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.



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Link to Original Article: http://www.repmag.ca/market-update/could-getting-a-mortgage-be-made-tougher-193318.aspx



BoC rate decision comes in

HomeNews
by Justin da Rosa,15 Jul 2015

The Bank of Canada has lowered its overnight rate to 1/2 per cent. “The lower outlook for Canadian growth has increased the downside risks to inflation. While vulnerabilities associated with household imbalances remain elevated and could edge higher, Canada’s economy is undergoing a significant and complex adjustment,” the central bank said in a statement. “Additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainably to target.” Prior to the decision economists were split on what move the central bank would make, with 16 of 29 economists polled by Bloomberg forecasting the central bank would slash the overnight rate by a quarter point to 0.5 per cent. The market was rife with speculation building up to the announcement, with analysts suggesting a rate drop would have little economic impact because rates were already extremely low.

Brokers suggested a slight lowering of rates would have little effect, except to perhaps attract stragglers to the enticing low rate environment – assuming, of course, that lenders follow the Bank of Canada’s lead. The Bank of Canada expects real GDP to grow by just over one per cent this year and about 2 ½ per cent in 2016. “The Bank’s estimate of growth in Canada in 2015 has been marked down considerably from its April projection.

The downward revision reflects further downgrades of business investment plans in the energy sector, as well as weaker-than-expected exports of non-energy commodities and non-commodities,” the Bank said. “Real GDP is now projected to have contracted modestly in the first half of the year, resulting in higher excess capacity and additional downward pressure on inflation.”

Link to Original Article: http://www.repmag.ca/news/boc-rate-decision-comes-in-193251.aspx




Mortgage lenders cut borrowing rates but is it good news?

Market Update
by Steve Randall
16 Jul 2015
The Big Five banks have reacted to the BoC’s decision to cut interest rates to 0.5 per cent, but as expected they haven’t passed the whole amount on to borrowers. TD Bank made its cut just 12 minutes after the rate decision was announced. It reduced its prime lending rate by 0.10 per cent to 2.75 per cent, but it had to make a further cut later as its rivals opted to cut 0.15 per cent to 2.70 per cent. Analysts are uncertain that the lower rates will mean more Canadians deciding to become first-time buyers; mortgage rates are already at historic lows and are unlikely to fall much if at all, although the talk of cheaper borrowing may be enough to boost interest.

The BoC took a calculated risk in cutting rates as it could fuel home prices in some already overheated markets. Coupled with the downward effect on the Canadian dollar it has the potential to make housing more attractive to foreign investors and tighten affordability for domestic buyers. Some analysts are also concerned that new or existing borrowers may feel overconfident that mortgage rates will stay low while interest rates do but the tracking of government bond yields, which are already rising, could increase the cost of some home loans long before interest rates rise again. That could potentially mean that homeowners will struggle to make payments and ultimately lead to a housing correction.

TD Bank economist Diana Petramala told the Globe and Mail: “We do think that eventually the economic conditions are going to catch up to the housing market and we’ll see a bit of an unwinding of recent strength over the second half of the year, even with the cut in interest rates.” Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage
Link to Original Article: http://www.canadianrealestatemagazine.ca/market-update/mortgage-lenders-cut-borrowing-rates-but-is-it-good-news-193284.aspx"

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Latest News Release Ottawa Real Estate Board

Busy spring market continues in June

Ottawa, July 6, 2015 - Members of the Ottawa Real Estate Board sold 1,694 residential properties in June through the Board’s Multiple Listing Service® system, compared with 1,657 in June 2014, an increase of 2.2 per cent. The five-year average for June sales is 1,664.

“The Ottawa market is performing very well month-over-month and year-to-date compared to last year,” says David Oikle, President of the Ottawa Real Estate Board. “Year-to-date sales for the first half of 2015 are up 4.9 per cent over the first half of 2014, and average sale price continues to be steady for the first half of the year.”
 
June’s sales included 274 in the condominium property class, and 1,420 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.
 
“Inventory levels at the end of the month remain healthy and on par with May levels, with average cumulative days on market keeping steady at 74 days,” says Oikle. “Properties continue to move consistently, and we look forward to this continuing into the second half of the year.”
 
The average sale price of a residential-class property sold in June in the Ottawa area was $404,254, an increase of 4.1 per cent over June 2014. The average sale price for a condominium-class property was $271,415, an increase of 5.1 per cent over June 2014. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.
 
“The number of residential units sold in June increased in every price range from $350,000 and above, and the $300,000 to $400,000 price range continues to have the highest concentration of properties sold,” states Oikle. “In addition to residential and condominium sales, OREB members assisted clients with renting 330 properties in June; 1,485 since the beginning of the year.”
 

Important information

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board's internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca.

Ottawa Real Estate Board

Visit external site

President
David Oickle

For more information,
please contact:

(613) 225-2240
OREB.Admin@oreb.ca




Finance minister addresses housing bubble fears
(copied from "Real Estate Professional Magazine": http://www.repmag.ca)

by Olivia D'Orazio20 May 2015 
Canada’s finance minister says the country’s real estate market has avoided the so-called bubble, with many markets already experiencing a soft landing.

Speaking at a private event on Wednesday, Finance Minister Joe Oliver said the government isn’t expected to change any guidelines in an effort to cool off the few hot markets remaining.

“We do not see the need for major changes at this time,” Oliver said at the event, according to Bloomberg News. “We will continue to monitor the market and make adjustments, if needed, although none are being actively considered right now.”

The Canadian government has changed lending guidelines four times since 2008, when real estate sales and prices started to rise. While those increases are still being realized in many markets – specifically Toronto, where April home sales rose 17 per cent from the year-ago period, and in Vancouver, where sales were up 37.7 per cent year-over-year in April. Still, Oliver said some regions are already seeing slowdown.

Regardless, analysts both in Canada and internationally have called the market overvalued. Most recently, ratings agency Fitch called the market overvalued by 25 per cent, while other firms have published overvaluation figures between 10 and 60 per cent.

Oliver isn’t alone in his predictions. Speaking to the House of Commons Standing Committee on Finance, Stephen Poloz, the governor of the Bank of Canada, also suggested the country is not in danger of a hard landing.

“There are many other characteristics of a bubble situation that are not present,” said Stephen Poloz, the governor of the Bank of Canada, pointing to  highly speculative behaviour – for instance, people buying multiple properties with the sole intent of selling them at a profit in the future.

Instead, the trend seems to be that first-timer buyers – more so than would-be investors – are taking advantage of low interest rates. Oliver said those interest rates, paired with economic growth in major centres, will continue to buoy the market, while hyperactive cities like Toronto and Vancouver will continue on their own trajectories.
 
PRESS RELEASE:  President of OREB on CTV Ottawa

Watch CTV Morning Live!
http://ottawa.ctvnews.ca/video?clipId=603544&binId=1.1164511&playlistPageNum=1

David Oikle, President of OREB will do six segments on CTV Morning Live from now until the end of June. Throughout these segments he will be talking about everything from the importance of using a REALTOR®, to how to better understand average sale prices in your area, to things people may fall victim to when going it alone.

David will be on at approximately 8:15 a.m. tomorrow morning (May 14th) to talk about the most recent market report, what the top three property types in Ottawa are, and what else OREB Members can help with.

If you missed the April 30th interview, check it out here!
http://ottawa.ctvnews.ca/video?clipId=603544

If you’d like to see what else we’ve been doing, click here.



The April market is in full bloom

Members of the Ottawa Real Estate Board sold 1,570 residential properties in April through the Board’s Multiple Listing Service® system, compared with 1,419 in April 2014, an increase of 10.6 per cent. The five-year average for April sales is 1,531.

“Despite the late departure of the cold weather this April, buyers were out in full swing, propelling the Ottawa resale market into a busy spring selling season,” says David Oikle, President of the Ottawa Real Estate Board. “Sales continued their steady pace upwards since the beginning of the year, with 362 more properties sold this April over March.”

April’s sales included 258 in the condominium property class, and 1,312 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“The average cumulative days on market has improved even more in April, coming in at 74 days, compared to 83 in March,” says Oikle. “Properties are moving faster and inventory is plentiful, with just under 9,000 residential properties, including condos, available for sale going into May.”

The average sale price of a residential-class property sold in April in the Ottawa area was $403,239, an increase of 0.9 per cent over April 2014. The average sale price for a condominium-class property was $265,371, an increase of 2.7 per cent over April 2014. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

“Several price ranges this month saw significant increases in units sold; a possible explanation for the residential average sale price entering the $400,000 range,” explains Oikle. “The $400,000 to $450,000 range saw an increase of 37.3 per cent; while the $500,000 to $750,000 range saw a 25.4 per cent increase. Two-storey and bungalow residential properties remain as the top selling property-types in Ottawa. In addition to residential and condominium sales, OREB members assisted clients with renting 283 properties in April, and 876 since the beginning of the year.”

The Ottawa Real Estate Board is an industry association of over 3,000 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

Important information

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board's internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca.

Ottawa Real Estate Board

Visit external site

President
Randy Oickle

For more information,
please contact:

(613) 225-2240
orebadmin@oreb.ca



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December 2014 - report from the Bank of Canada



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by Jennifer Paterson 25 Nov 2014

"One-year condo investments are a dangerous game!"

Investors who purchase a condo unit with the intention of selling for a profit within
a year are playing a dangerous game, says one real estate expert.

"Timing the market is always high risk and a majority of investors jump in ill
prepared,” said Freedom Malhotra, a sales representative at Condo Planet.
“They are playing a dangerous game, but they are not alone.”"

CMHC’s Condominium Owners Report found that, among respondents who have
purchased a secondary condo unit as an investment, 12 per cent intend to sell it
for a profit within a year of purchase."

That could be problematic if they have no contingency plan in the event that their
condo can’t sell due to an oversupply of units at the same price point, argued
Malhotra, also pointing to the possibility that a desperate seller may drop their
price, which could make the sale unprofitable for other investors who want to sell.

But the 58.4 per cent of respondents to the CMHC survey who intend to keep
their secondary unit for five years may have the right idea. “When you buy and
hold, you don’t have to worry about timing the market,” explained Malhotra.

“Historically, real estate in big cities such as Vancouver, Toronto and Montreal
has always appreciated within five years, so as long as you don't buy above
market value and crunch the numbers, you should be very happy with your
investment.”

The report, which is part of CMHC’s 2014 Canadian Housing Observer, also
found that more than 40% of respondents do not have a mortgage on their last
purchase and, for those that do, most had a down payment greater than 20%.

Shaun Hildebrand, senior vice president at Urbanation, said this is good news.
“So, if there ever was a correction, it appears that the vast majority of investors
would be well insulated from going ‘under water’.”

However, Hildebrand also added that the survey misses the ‘flow’ of new condo
units coming into the market, which is where less information is known about
investors.

“The survey only included 7% of respondents who purchased a unit that is still in
presale or under construction,” he said. “Since a large volume of condos will be
coming to completion over the next few years, it would have been more
meaningful to capture their intentions and equity positions."

“That would provide us with a sense of where supply growth will be directed in
the coming years (i.e. for rent or for sale) and allow us to better assess risks in
the market.”