Ottawa Real Estate by OttawaAgent.ca

Gloucester Centre Update - July 2010

Combined condo and freehold re-sale housing transacations in the Gloucester Centre / Silver City neighbourhoods of Carson Grove, Cyrville, and Pineview have followed the interesting cross-Canada trend in 2010 of lower than usual volume with sharp price increases.  As covered extensively in the Globe and Mail over the past few days, it is now widely expected that things they-are-a-changin' on the Canadian Real Estate scene. 

This is not news to readers of my newsletter and Blogs for the past year.  In the first half of 2010 it was glaringly apparent that prices were being driven higher by unusually high demand and continuing low supply of re-sale housing.  Ironically, many buyers were driven by impending HST implementation - but of course also by ongoing low interest rates, and changning mortgage regulations in April.

Reading all of the coverage and analysing the data carefully it is easy to see where many writers have far overemphasized one factor or another, and the upcoming consequences are written to be extremely dire by many.  There are others, though, who write essentially the same thing I have been writing - that prices are set to stall, stagnate, and possibly recede very moderately for several years running, and this should begin soon.  We though the Fall 2008 to Spring 2009 lull was the start, but then we had a 14 month run-up as a distraction.

One factor few (actually, I haven't seen any) have written about is simple equity accumulation by Canadian households.  Many write about skyrocketing household debt (though most of those writers are memebers of the public on comment forums, and reading between the lines many of these are the very ones who have failed to save and invest wisely) but there are statistics that show a very large number of households with much more equity than debt, particularly attributed to housing.  Over half of my clients purchasing homes do so with more than 50% down.  This accumulation of equity itself helps to drive prices up as homeowners move up, or even as they move down and extract some equity as cash.  They are sometimes more picky about location and less fussy about saving a few thousand on the price of their new property.

So many sheep (oh, sorry, forum contributors) talk doom and gloom and particularly compare the situation in Canada to the problems experienced in the U.S. since 2006.  It is quite hilarious how this comparison ceased as prices continued to rise while media, CMHC, Banks and Realtors explained that in Canada we did not allow millions of unqualified buyers to purchase homes (etc.) and therefore the situations are not comparable.  But hey, the beginning of a quiet period in Real Estate and on pounce the sheep - bringing back the already disproven argument comparing to the U.S. real estate meltdown.

I ramble.  Here is the Gloucester Centre / Silver City data year to date (July 31) (August data will be available shortly and I'll post an overall Ottawa Real Estate Market Update immediately):

Looking to buy or sell a home in Carson Grove, Cyrville, or Pineview? Bruce is amazing to work with - he provides expert guidance every step of the way and works only to help you through the hurdles to achieve what you want to accomplish.

Orleans Update - July 2010

In With The Old, Out With The New

For the past few years, my clients buying and selling in Orleans have observed that prices of homes in older neighbourhoods like Fallingbrook, Queenswood Heights, and Chapel Hill, have not been appreciating in value as much as they did in the past, year over year. In some cases, Sellers have been a little diwmayed that it has taken longer to sell their home in these neighbourhoods, while newer areas like Avalon, Notting Gate and Chapel Hill South. On the other hand, some buyers who really preferred the idea of a shorter commute and a more established neighbourhood, were chagrined at the typical condition of many of the homes in the older neighbourhoods.

This phenomenon makes perfect sense and is a classic illustration of the typical community cycle from a Real Estate standpoint, although with less amplitude than you would observe in say, a downtown neighbourhood over a 75 year period. Homes in the older Orleans neighbourhoods were around 15 to 20 years old - in many cases old enough that they were beginning to look tired in their decor even if well maintained, and often they were also not entirely well maintained. Furnaces were still working but alerted buyers to possible work and cost over the first few years in their new home. Same with roof shingles, and in this particular time in construction history, windows. The poor quality wood windows of the 1980's and 1990's have given all wood windows a bad reputation and almost a stigma with some buyers, even though high quality wood windows are an excellent product.

The net result of all of this was that these "older" homes though often perceived as better located, were just a little too old to be an easy move-in-ready option, but a little too new for many of the sellers to be able to stomach having to spend on major maintenance items and top to bottom cosmetic updates. So they had to sell for a lot less than the shiny new homes in the newer neighbourhoods in order to attract buyers who were flocking to the perceived better balance between move-in ready with no maintenance vs. slightly less attractive location. Of course, the massive development of commercial and recreational amenities in the newer areas has made the decision to purchase new or newer even easier for many buyers.

Until now! Checking the year to date results for all neighbourhoods across Orleans (the table below) you will see that for the first time in 5 years, the older neighbourhoods are beginning to appreciate much more than the newer neighbourhoods in most cases. I actually counselled many clients in the past few years that exactly this would happen, encouraging them to buy in the older neighbourhoods while prices were stagnant. Those who have, will soon be rewarded. After all, if you look across the entire City, what is the general trend? Pound for pound, the closer you are to the core, the higher the value of your Real Estate.

This is not to say that the newer homes in the more distant neighbourhoods were not a good option. They are retaining their value and even rising significantly in some areas as you can see. They too, in a few years, will go through the need for renewal. As always with your Real Estate - it requires ongoing investment to retain and increase in value relative to competition. Looking for a great Agent to help you buy or sell a home in Orleans? No one works harder or smarter; give Bruce a call today.

Blackburn Hamlet Update - July 2010

Well, a few years ago I pegged Blackburn Hamlet as undervalued and while I hate to say I told you so, ... well, I... you know.  With sales volumes down dramatically in Ottawa in July, following slow downs in April, May, and June, Blackburn activity is humming along relatively smoothly.  The table below shows year to date activity in Blackburn.  July's volume and prices were pretty much on par with 2009.

If you're thinking of buying or selling in Blackburn Hamlet we know the market but more importantly we work to understand the market of the moment and your cicumstances to help you make the best decision possible. Don't settle for Martha Stewart - choose a REALTOR with business and marketing experience and the education and talent necessary to handle your case professionally.

Beacon Hill Update - July 2010

In keeping with the general theme across Ottawa which is falling in line with the overall trend in Canada (see this article), Beacon Hill re-sale home transactions have been falling steadily since April and dramatically dropped off in July.  See the table below for the year-to-date sales volume and average prices in Beacon Hill.

For now, again in keeping with the trend in Ottawa generally, prices are holding.  If inventory continues to rise and sales do not pick up and follow historical volumes, you can expect to see buyer's market conditions begin to prevail, including the possibility of some price erosion.  But let's wait and see - the Fall is usually quite busy in Ottawa and things may pick up, though few feel the heated pace of the March 2009 to April 2010 pace will resume.

For assistance with Beacon Hill Real Estate, if you're looking to buy or sell in Beacon Hill, Bruce Brown offers professional Broker services with a hands-on, highly accessible, realistic approach you won't find in most Agents.

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Ottawa Real Estate Update - July 2010

Below is the latest news release from the Ottawa Real Estate Board summarizing residential and condo sales activity reported on the MLS system during July 2010.  Note that the press release indicates in the subject that we are still in a Seller's market. I will be analysing the raw data shortly but am fairly certain this subject line is very misleading. While prices continued to rise, the number of transactions dropped dramatically relative to July 2009.  Granted, 2009 was record-setting, but a 27% decrease is very significant, and volume was also down in May and June.  The key indicator for a buyer's, balanced, or seller's market is the rate of absorption of new listings, not price.  We'll take a look at that in a subsequent post shortly.  In May and June inventory rose and indicators were heading rapidly toward a balanced market.  Prices are bound to level off soon and may only have risen in July because buyers and agents did not monitor the market closely enough to realize it has been shifting for two months previously.

Having said that, there is still some upward pressure on prices in Ottawa due to longstanding affordability relative to the rest of Canada.

Work with a REALTOR® who is on top of the market to maximise your return when selling, and negotiate the best deal possible when buying. Ottawa Real Estate services for buyers and sellers by Bruce Brown, Real Estate Broker at OttawaAgent.ca

The news release:

Still a seller’s market in Ottawa; prices rise steadily

Ottawa, August 5,2010 :Members of the Ottawa Real Estate Board sold 1,149 residential properties in July through the Board’s Multiple Listing Service® system compared with 1,578 in July 2009, a decrease of 27.2 per cent.Of those sales, 294 were in the condominium property class, while 855 were 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.

“Last July saw a record high number of sales in Ottawa, which was the result of pent-up demand as the market came out of a downturn. What we see this year is a return to more seasonal sales volumes,” said Board President Pierre de Varennes. “The ratio of listed properties to sold properties indicates that Ottawa remained in a seller’s market last month, and sale prices continued to rise at a steady pace, as they generally do here in the national capital,” he added.

The average sale price of residential properties, including condominiums, sold in July in the Ottawa area was $321,827 , an increase of 7.1 per cent over July 2009. The average sale price for a condominium-class property was $249,674 , an increase of 15.2 per cent over July 2009. The average sale price of a residential-class property was $346,638, an increase of 7.1 per cent over July 2009. 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 Ottawa Real Estate Board is an industry association of 2,590 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

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 effect 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.mls.ca and www.ICX.ca. Information about listings and open houses is also available in the Board’s weekly newspaper, Ottawa Real Estate Guide, available free at 700 locations across the Ottawa area.

Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA  (REALTOR®) and/or the quality of services they provide (MLS®).

Bytown Photography - Official Launch

While the site is not complete, our designer/developer and marketing consultant Jordan Brown is making improvements and managing additions every day.  Bytown Photography provides spectacular real estate photography that has helped OttawaAgent.ca consistently attract exceptional volumes of showings, leading to an unmatched success rate selling homes in good time and often for more than established market value.

Show off your home or your listing - impress yourself or your client - get people clamouring to see your property and sure enough the right buyer will be among them before long!  Visit Bytown Photography at www.BytownPhoto.com and give our family business a call or drop us an email.

Cheers,
Bruce Brown

Real Estate Broker
KELLER WILLIAMS OTTAWA REALTY

Ottawa Real Estate Update - June 2010

While the number of homes and condos that changed hands in April of this year broke all records, May saw a retreat in the volume of transactions to slightly below 2009 levels. A copy of the Ottawa Real Estate Board's news release for June is available on our site www.OttawaAgent.ca here: June 2010 market update

Transactions on MLS for homes and condos in June fell to levels in line with the average of the past 5 years for June.  It is very clear that the strong seller's market that has prevailed in Ottawa from late March 2009 through April 2010 is officially over. Statistically we are back into a balanced market, that will afford buyers the opportunity of a little more inventory to choose from.  Of course, properties that are extremely well maintained and properly priced in desirable areas still sell very quickly and therefore buyers need to do their homework and be prepared to move on the right property when it hits the market.  Sellers are going to begin to face more competition as inventory builds for the third month in a row, and actually surpasses levels from 1 year ago for the first time this year.

Strategic marketing will begin to become a requirement for a timely sale for full market value, whereas for much of this year lesser marketing efforts could readily achieve a sale - though in many cases analysis shows that poor marketing and a quick sale have yielded sale prices below market potential.  As always, working with a professional who is on top of market trends and offers brilliant marketing with attention to detail is key to achieving the best results.

Putting on the Brakes

The market is now showing all signs of turning from the 14 month run of pure Seller's market that we have experienced in Ottawa. See our frontpage at OttawaAgent.ca for key stats showing inventory building for the second month in a row and sales decreasing in May. This article on Canoe Money provides further insight into re-sale home prices in Ontario dramatically reducing their rate of increase.  Our opinion is that Ottawa house prices over the next 12 to 24 months will rest between flat and inflationary.  If you are thinking of selling or are currently marketing your home privately, now is the time to think seriously about professional marketing services to realize full equity potential before the tide turns entirely in favour of Buyers. If you are ready to talk turkey, premium home marketing services are a click away.

Ottawa Real Estate Market Update - May 2010

The Ottawa Real Estate Board's news release follows.  The record setting pace of transactions in April slowed down considerably in May.  With inventory beginning to build as well, the frenetic seller's market in Ottawa appears to be near the end of its run.  Buyers will welcome a return to more balance and the ability to negotiate that should begin to prevail in coming months.  Sellers will seek skilled professional assistance to realize full equity gains on sales going forward whereas a few were able to do quite well privately in recent months, though stats continue to illustrate that "quite well" still did not equal the equity gains enjoyed by those using professional Real Estate marketing services. 

For more information or a marketing consultation, don't hesitate to contact us at OttawaAgent.ca

Slower May after record-setting April: could it be the HST?

Members of the Ottawa Real Estate Board sold 1,694 residential properties in May through the Board's Multiple Listing Service® system compared with 1,967 in May 2009, a decrease of 13.9 per cent.

Of those sales, 353 were in the condominium property class, while 1,341 were 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.

"Many of the sales that would normally have occurred in May were pulled back to April, due to buyers trying to avoid the May 1st transitional implementation date for the HST, as well as new mortgage regulations that came into effect April 19," said Board President Pierre de Varennes. "Buyers knew they would be paying eight per cent more for all of the service costs associated with a real estate transaction if their closing date was after July 1, and that it might be more difficult to qualify for financing, so they moved quickly to avoid either situation. In addition, by comparison May 2009 was a record-breaking month as the floodgates opened on pent-up demand following the brief downturn in the market," he added.

The average sale price of residential properties, including condominiums, sold in May in the Ottawa area was $333,408, an increase of 6.9 per cent over May 2009. The average sale price for a condominium-class property was $246,116, an increase of 6.4 per cent over May 2009. The average sale price of a residential-class property was $356,387, an increase of 8.3  per cent over May 2009. 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.

Bruce Brown,
Real Estate Broker

Keller Williams Ottawa Realty, Brokerage

Ottawa Real Estate Market Update - April 2010

The Ottawa Real Estate board has released data for re-sale transactions throught the MLS system posted in April 2010. Strong seller's market conditions persist and so do higher volumes of transactions and escalating home prices.

Read the news release including a summary of the data on our site here: OttawaAgent.ca April 2010

Renovation Payback

Here's a link to an interesting article from Forbes.com discussing the return on investment for various home renovations.  When you list with OttawaAgent.ca our designer gives you expert advice on what improvements and spruce ups to make in order to increase your sale price and decrease your time to sell. The focus is not on spending money or renovating the house in a significant way in the vast majority of cases.  The formula is: spend effort and a few dollars to realize many times that few dollars in sale price.

This article, for the most part, illustrates why that is the case: major renovations do not in general return positive ROI:  Forbes Article 

Thinking of preparing to sell your home in the Ottawa area during this remarkably strong Seller's Market?  Get in touch for a free home selling consultation today.

Ottawa Real Estate Market Update - March 2010

As reflected and observed in our recent Beacon Hill Market Update, the Ottawa-wide results for March do show that inventory is finally just starting to build, though only modestly at this point, keeping us firmly in Seller's territory.  Note that prices are up 15% over last year.  Our opinion is that the Ottawa market is experiencing a correction as Ottawa has been enjoying the most affordable Real Estate of all major Canadian cities (average income relative to average home price) for a long time.  We may catch up, and then expect to see prices stabilize.  In some neighbourhoods and price brackets there is likely still room to purchase with built-in equity gains coming over the next few months - but in many areas and price points it is unclear to us that there is a significant upside remaining.

Here is the Ottawa Real Estate Board's news release covering market data for March 2010:

Ottawa housing market soars into spring

April 7, 201 : Ottawa housing market soars into spring

Members of the Ottawa Real Estate Board sold 1,499 residential properties in March through the Board’s Multiple Listing Service® system compared with 1,161 in March 2009, an increase of 29.1 per cent.

Of those sales, 327 were in the condominium property class, while 1,172 were 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 spring market kicked off early and strong this year, possibly boosted by the unseasonably warm weather and absence of snow in March,” said Board President Pierre de Varennes. “Inventory is still lower than at this time in 2009, but has begun to increase slightly in recent months,” he added.

The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $329,767, an increase of 15 per cent over March 2009. The average sale price for a condominium-class property was $240,409, an increase of 15.1 per cent over March 2009. The average sale price of a residential-class property was $354,698, an increase of 15.1 per cent over March 2009. 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 Ottawa Real Estate Board is an industry association of 2,540 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association and thus are entitled to use the term REALTOR®.

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 effect 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. Information about listings and open houses is also available in the Board’s weekly newspaper, Ottawa Real Estate Guide, available free at 700 locations across the Ottawa area and now online at www.OttawaRealEstateGuide.ca.

Beacon Hill Market Update

Referring to the data posted on our neighbourhood page for the Ottawa, Ontario neighbourhood of Beacon Hill there is the possibility of some mixed news.  You will notice that the average days on market for residential class properties in the neighbourhood from January 1, 2010 through April 6, 2010 is a mere 11 days.

Overall, Ottawa is still very firmly in Seller's territory and this is evidenced by take-up rates exceeding .5 (ratio of sales to active listings in a given time period) and in many areas pushing .8  It is also proven out on the streets as here at OttawaAgent.ca we have dealt with competitive offers in every transaction in 2010 to date.  Every transaction.

Note, however, that in Beacon Hill to date in 2010 the sales to listings ratio is only .39  This indicates that inventory may be starting to build in the neighbourhood.  While it is a very early indicator and only based on just over three months of largely Winter market data, it could easily be the beginning of a changing of the tide. With mortgage rates now beginning to head North, any market reaction is possible.

What is truly fascinating, though, is to look at the above two statistics in conjunction.  11 days on market average for homes that have successfully sold, while inventory builds (i.e. fewer than 50% of new listings have sold.)  This tells us that properties that are selling are selling very quickly, while there are actually even more that are not selling at all (or at least, not within the measured period.)  As is often the case, and as is more the case in recent years, there are two markets at work: those for homes IN THE MARKET and those for homes OUT OF THE MARKET.  The distinction?  In a word: marketing. Remember that marketing includes our version of the classic 4 P's:  preparation, positioning, publicity, and price. If you're thinking of selling a property, getting the marketing right is critical.

Old Ottawa South Market Update

We have posted market data for the first two months of the year to our new Old Ottawa South page on OttawaAgent.ca  We'll be checking in periodically on this neighbourhood and many others, and posting the latest market stats.

Two months of data does not constitute a very significant sample; however, in Real Estate trends establish quickly and the market can turn on a dime, whether it is just a bend in the road or a U turn.  In this case the data shows a market in balanced territory as measured by the sales to new listings ratio of .42 - but we suspect that as Spring marches on the pace will increase and keep the neighbourhood in Seller's territory along with most areas of town.  Note the average time to sell is only 11 days.  There is still a shortage of listings relative to demand, and Agents' diligence is guiding Sellers to price at market value, drawing plenty of attention to homes and ultimately yielding higher prices for sellers as indicated by the increase in average sale price of 11% to 12% over last year.

If you are interested in purchasing a home in Old Ottawa South put us to work for you; we have our eye on the market on an hourly basis and understand the strategies required to assess and acquire homes in this challenging market for Buyers.

If you have a home to Sell in Old Ottawa South, before venturing out on your own or hiring an Agent with tried and no-longer-so-true methods, give us a shout and a chance to impress you with our marketing strategies, effort, and personal, hands-on approach.