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Ottawa real estate: A return to a more balanced market | CTV News – CTV News Ottawa

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Real estate prices and the stratospheric sales that have dominated conversations and newscasts for the past two years are definitely slowing down.

“The market is slowly shifting to a more normal and balanced market,” says Ottawa realtor and founder of Bennett Property Shop Realty, Marnie Bennett.

Higher interest rates are definitely a factor contributing to the cooling off, says Bennett.

The low rates created the wild ride for home buyers and those in the industry.

“These extremely low interest rates propelled homes prices more than 60 per cent over the last two years – record breaking sales across Canada,” Bennett explains.

“In the last two months, we have seen so many changes in the overall market. Consumers are overwhelmed and trying to navigate through all the new rules.”

Bennett says the increase in interest rates has eliminated many buyers, especially with another rate increase coming on June 1.

For every one per cent increase in rates, a buyer loses ten per cent buying power.

Bennett, who has been in the real estate business for more than four decades, thinks back to a dramatic time.

“In 1980, interest rates were 22 per cent. We are at 4.1 per cent right now with an added 2 per cent stress test qualifier.”

Bennett looks to the Toronto market for an overall picture.

“In Toronto, the largest real estate market in Canada, sales were down 41 per cent year-over-year.

“The sales price for homes in Toronto, as compared to March 2022 for the first time homes prices, were down by nine per cent in Toronto and, in the GTA, approximately seven to eight per cent.”

Bennett explores whether this is a trend or an aberration.

“Average Toronto home prices in March 2022 were $1.3 million. They dropped in April to $1.2 million for the average home,” Bennett says.

“Ottawa sales were down 21 per cent year-over-year, but prices were up in Ottawa year-over-year by 12 per cent.

“The housing market has been a major focus of the federal government and provincial governments over the last few months. Canada has a severe shortage of homes; approximately 3 million are needed.”

Bennett examines what is happening:

  • Inflation percentage of 6 per cent is the highest on record in the last 30 years
  • In Early 2020, the Bank of Canada dropped interest rates to nearly zero to cushion the economic blow of the pandemic
  • These extremely low interest rates propelled homes prices more than 60 per cent over the last two years, with record breaking sales across Canada
  • 48 per cent of millennials now own homes, 24 per cent of renters bought homes, when it is normally only 6 per cent
  • Approximately 30 per cent of homes purchased in the last two years have been from investors

What is happening in Ottawa?

The average sales price in Ottawa for a residential home is $829,318, an increase of 11 per cent year over year. The average home price in March 2022 was $743,309, an increase of approximately $86,000 month-to-month.

The average sales price in Ottawa for a condominium apartment $473,702, up 11 per cent year-over-year. March 2022 Ottawa condo prices were $426,874, an increase of about $47,000.

OTTAWA NEIGHBOURHOOD PRICES APRIL 2022 VS APRIL 2021

  • NEW EDINBURGH – Up 63.5% – $1,614,000
  • ALTA VISTA – Up 42% – $1,070,806
  • GREELY – Up 33% – $1,120,782
  • HUNT CLUB – Up 29% – $877,715
  • BARRHAVEN – Up 14% – $842,082
  • STITTSVILLE – Up 11% – $916,000
  • ORLEANS – Up 10% – $765,081

VALLEY TOWNS APRIL PRICES APRIL 2022 VS APRIL 2021

  • ARNPRIOR – Up 14% – $606,500
  • CARLETON PLACE – Up 21% – $707,000
  • ALMONTE – Up 27% – $730,667
  • ROCKLAND – Up 9% – $638,362
  • KEMPTVILLE – Up 18% – $766,143

Bennett concludes, in a segment on CTV News at Noon, that it is still a seller’s market.

There is just over a month’s supply of inventory for sale in Ottawa.

There are about 1,800 homes are for sale in Ottawa. Five years ago, there were more than 6,000 for sale.

Bennett says sellers will have less qualified buyers to sell to and there will be few offers and fewer multiple offers.

“There will be conditional sales, and for less than asking, but homes that are updated and well-maintained will sell for more than asking.

“The market is slowly shifting to a more normal and balanced market.” 

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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