OTTAWA —
“Scorching” is the word realtor Taylor Bennett of Bennett Property Shop Realty uses to describe the Ottawa real estate market.
For the past 14 months we have been a hot sellers’ market, with homes selling for tens of thousands over the asking price and bidding wars.
Bennett says this is due to low inventory, among other reasons.
“The Baby Boomers are becoming new, active, buyers, for the first time in decades as they are looking to downsize,” he says. “Public and private sector are hiring, making Ottawa the second fastest growing city in Canada.
“Buyers out there have yet to adjust their approach and expectations in this new market. This new market is like a battlefield, you have to be more prepared than ever to navigate this hectic market.”
But Bennett doesn’t want buyers to feel shut-out, or that’s it too late to get into the market. He instead offers this primer.
Ask yourself these questions:
How much can I afford?
What do I need?
When do I need it?
Bennett says this is particularly important for first time buyers: “It sounds obvious, but step one should be speaking to a mortgage specialist and get a locked-in mortgage rate while you shop. Mortgage bankers and mortgage brokers can give you very different options depending on your current financial situation.
“In this fast-paced market, it can take much longer to find what you need/want, but you also have to be ready to move quickly when the opportunity arises.”
The stats show that almost 40% of the residential buyers are looking for a home for between $400,000 and $550,000, Bennett says.
”If you are one of those buyers, what are you and your agent doing differently to get the home you want? The same tactics from years past simply do not work in today’s market, it takes a novel approach and well laid-out plan to beat out other buyers today.”
For the condo market, the most desirable price range is between $200,000 and $350,000.
“Fifty-four per cent of condo buyers are in this range. The condo market is even more competitive than the residential side of the market. As more and more Baby Boomers start evaluating condos differently, and our population continues to grow, the demand will stay high until more product is introduced to the market.”
For those buyers worried they are priced out of this market, Bennett is reassuring.
“There are still some fantastic deals out there you just have to realign your expections and make adjustments when entering into this market. The old tactics from yesterday do not work.”
Readjustment tips:
1. With inventory levels at a record low & sales happening fast and furiously, start your home search months earlier than normal.
2. Don’t use the list price as a guide. Many homes are deliberately being underpriced. Sellers have no intentions of selling at that price, like the photos & description, it’s another way of bringing in buyers.
3. Do your own research & stay within your means.
Bennett says: “When you do find that property that was the best suited for you, change your expectations, change your approach and you won’t be disappointed.”
Depending on your budget, you will have different options. Bennett has prepared these slides to give you a sense of what is available in various neighbourhoods.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
