If you are a homeowner who has spent a lot of time thinking “I could have listed” or “I should have sold” and you’re feeling like you missed the epic real estate boom, realtor Taylor Bennett has a short pep-talk.
Bennett reassures homeowners here they can feel good about their real estate values.
“Ottawa is one of the most stable and predictable real estate markets in North America. Going back to the 1950s, the home prices in Ottawa increased by 6.75 per cent annually,” explains Bennett.
Instead of comparing 2022 values to 2020, Bennett suggests going back four years to look at the incredible growth since 2018.
And his main quote that bears repeating:
“While sales are down compared to last year, it’s important to put the last year into context – 2021 was the best year for real estate, setting both sales and price records. So, a comparison to the best year on record is like comparing an NHL-ers season stats to Wayne Gretzky’s best year. It’s not going to look very successful. But when you pull back and take a broader look, we are currently on the same pace as we were in 2019 – the third best year on record.”
Taylor Bennett of Bennett Property Shop Realty, co-hosts the Bennett Real Estate and Wealth Show on Newstalk 580 CFRA and is a regular contributor on CTV Ottawa’s News at Noon.
“I thought we would give viewers a different perspective of the market and go back to 2020 and 2018 to see how quickly things have changed in four years,” says Bennett.
“The Ottawa real estate market is finally seeing signs of going back to ‘old normal’ – more inventory, fewer sales, and stable prices. But after over two years of record-setting prices and sales, where each month seemed to be better than the last, it’s easy to forget how much the market has changed.”
TAYLOR BENNETT COMPARES JUNE OF 2022 TO JUNE OF 2018:
1. Pricing Strategy (residential)
“Residential homes have grown by over $300,000 in a four year window and almost $200,000 in two years,” Bennet says.
“One of the big reasons for this was the competitive multiple offer scenarios that were commonplace. These scenarios forced buyers to spend to the maximum of their budgets, whereas buyers in previous years could find options in the middle of their budgets. Additionally, the historically-low interest rates allowed for buyers’ maximum budgets to be higher than in years past, resulting in the record-setting prices we have seen over the last two-plus years.”
2. Pricing Strategy (condominium)
“The price for condominiums also grew substantially during the last four years, seeing the price increase by over $140,000 during that time,” Bennet explains. “And just like their residential counterparts, buyers were having to compete against multiple buyers – often having to outspend their competition to win. While the number of homes selling in multiple offers has drastically decreased – THAT is the norm. In 2018, and in many other years prior, most homes sold in one buyer vs one seller scenarios, and the sale prices typically ended up within one to two per cent of the list price – only since 2019, did we see the average sale price surpass the average list price.”
3. Sales & Inventory (residential & condo)
“One of the big factors contributing to the return to the ‘old normal’ is the increase in inventory – with more options for buyers to consider, not only are they able to shop around and find the best home, but they can now work in a condition or two into their offers, giving buyers more time to finalize their purchase,” says Bennett.
“Yet, even still, well-priced homes are still selling quickly – under 1 month, on average. Four years ago homes almost took 2 months to sell and inventory levels were almost double what they are today.”
4. Growth in Context
“Ottawa is one of the most stable and predictable real estate markets in North America. Going back to the 1950s, the home prices in Ottawa increased by 6.75% annually, and seldom did the market grow below two per cent or above ten per cent,” Bennet says.
“But, since 2019, we have seen the average sale price increase by over 50 per cent- or over 16 per cent per year, almost three times the average annual rate! With prices stabilizing we are seeing fewer record-setting sale prices, but compared to where home prices would normally be today, homeowners can still sell for almost $200,000 more than expected – well beyond any optimistic projections from 2018.”
Canadian Real Estate Prices To Fall More Than Expected: Desjardins – Better Dwelling – Better Dwelling
B.C. ‘clear’ there’s not enough housing as Vancouver encampment ordered dismantled
VANCOUVER — British Columbia’s acting attorney general says the province was “clear” with Vancouver officials that the Crown corporation responsible for subsidized housing does not have enough spaces available for people who are being told to dismantle their tents along a street in the city’s Downtown Eastside.
Murray Rankin, who is also minister responsible for housing, says housing is a human right, and the “deeply concerning scenes from Hastings Street demonstrate how much more work we have to do to make that a reality for everyone in our communities.”
Rankin in a statement Friday says BC Housing has accelerated efforts to secure new housing for encampment residents including pursuing new sites to lease or buy and expediting renovations on single-room occupancy units as they become vacant.
He says BC Housing is aiming to make a “limited number” of renovated units available next week, with more opening later in the fall.
Vancouver fire Chief Karen Fry ordered tents set up along Hastings Street sidewalks dismantled last month, saying there was an extreme fire and safety risk.
Police blocked traffic Tuesday as city staff began what’s expected to be a weeks-long process of dismantling the encampment but little had changed by the end of the week with most residents staying put, saying they have nowhere to go.
The city has said staff plan to approach encampment residents with “respect and sensitivity” to encourage the voluntary removal of their tents and belongings.
Community advocacy groups, including the Vancouver Area of Drug Users and Pivot Legal Society, have said clearing the encampment violates a memorandum of understanding between the city, the B.C. government and Vancouver’s park board, because people are being told to move without being offered suitable housing.
The stated aim of the agreement struck last March is to connect unsheltered people to housing and preserve their dignity when dismantling encampments.
The City of Vancouver may enforce bylaws that prohibit structures on sidewalks “when suitable spaces are available for people to move indoors,” it reads.
The province is not involved in the fire chief’s order or the enforcement of local bylaws, which prohibit structures on sidewalks, but it is “bringing all of BC Housing’s resources to bear to do what we can to secure housing for people, Rankin said.
“I recognize the profound uncertainty and upheaval people impacted by the fire order are facing, and we will provide updates on this work as we have news to share,” he said.
Rankin, who had been serving as minister of Indigenous relations, was appointed acting attorney general after David Eby stepped down to run for leadership of the B.C. NDP.
This report by The Canadian Press was first published Aug. 12, 2022.
The Canadian Press
Mismanaged real estate deals land B.C. lawyer two-month suspension – Business in Vancouver
Mismanaged trust accounts have landed a ban on residential real estate conveyancing for a B.C. lawyer.
A Law Society of BC tribunal panel has suspended Surrey lawyer Serf Grewal after determining he unintentionally misappropriated tens of thousands of dollars of trust funds.
Grewal was found to have committed several breaches of law society rules, largely related to real estate. As such he’s also been barred from future residential real estate conveyancing.
“The proven misconduct,” stated the society, “includes unintentional misappropriation of slightly over $42,000 of client trust funds, due to trust shortages and accounting errors, mishandling of a further $3,770 of client trust funds which resulted in a trust shortage that he did not report to the law society, improper withdrawal of $5,500 held in trust for fees before delivering bills to the client, failure to comply with accounting obligations over a four year period, and improperly commissioning an affidavit by not personally witnessing the attestation.”
Grewal’s suspension was said to be curtailed from what may have been a longer one, granted there was “evidence establishing that none of Grewal’s misconduct arose from dishonesty or deliberate misconduct for personal gain.”
As well, “the panel also considered evidence of a clear connection between Grewal’s misconduct and mental health issues related to childhood and personal trauma, and that the consequences flowed from his decision to report that trauma,” noted the society in a statement Aug. 10.
Grewal was also ordered to undertake trust account supervision and educational courses.
He claimed his annual income was in the range of $45,000 to $50,000 and so the tribunal panel afforded him 16 months to pay $9,000 in costs.
Canadian Real Estate Prices To Fall More Than Expected: Desjardins – Better Dwelling – Better Dwelling
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