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Ottawa real estate: Comparing 2022 to 2018 | CTV News – CTV News Ottawa

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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.”

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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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