Summary Real Estate Market Ottawa

December 17, 2016 Facebook Twitter LinkedIn Google+ Real Estate News Ottawa

Houses for Sale Ottawa

Summary Real Estate Market Ottawa 2019

In this post, I will attempt to summarize the simmering and soon to be hot Real Estate market in Ottawa.  In 2016,  Ontario Liberal government announced that they the first-time homebuyers’ maximum Property Transfer Tax refund to $4,000. The Ontario Government to help first-time homebuyers but not damage the equilibrium of home markets beyond Toronto.

Sousa’s statement was part of the provincial authorities’ Autumn Economic Statement. The finance minister’s focus on helping first-time buyers emphasizes how unaffordable a house purchase is becoming, especially in property markets that are hot, like the Greater Toronto Area, and Ottawa is starting to show signs of movement.

The comparatively new CEO of the Ontario Real Estate Association, Tim Hudak, was calling for property-transfer tax breaks. In press statements he asked for help for first-time homebuyers move out of the apartment into a place of their own or to help them get from their parents’ house.”

Record sales in Ottawa’s Real Estate Market 2019

Property prices in Ottawa increase by double the inflation rate of the city. However, the reality is that their prices are still a bargain compared to other Canada’s top cities. Ottawa realtors sold 1,171 residential properties and 314 condominiums in March through the board’s MLS service. Combined, the total was just shy of the record 1,498 sold in March 2010 — and up 28  per cent from March 2016. if you want to get in on the ground floor, now is the time.

October, November and December Total sales were also up. President of Ottawa Real Estate Board, Shane Silva, also said that residential and condominium units broke a five-year average record selling 200 more units. Nevertheless, fewer homeowners are putting up their homes for sale, indicating the market’s inability to sustain such high levels of activity. For instance, a year earlier, there were 2713 properties listed dropping to 2410 last month. However, September experienced continued ten months low, as average home retail price stood at $382,793 falling 0.1% from last year.

Saturation in Vancouver and Toronto.

If you’re thinking of adding real estate to your portfolio, there are a lot of opportunities in Ottawa now. The real estate market in the nation’s capital is on the move. Most savvy investors will buy low and sell high. Toronto and Vancouver well I’ll let you decide, but a sure bet is Ottawa.

Vancouver’s real estate market sales dropped by 33% in September compared with the same month last year. Predictably, it occurred as the market adjusted to the 15% tax levied by the British Colombia’s government on new foreign buyers. In sharp contrast, Toronto Real Estate Board reported that in Toronto, home sales continued to soar in September increasing by 20.4% from last years $755,755.

The Federal Governments new Real Estate Rules.

he Finance Minister Bill Morneau announced in August 2016, the four new sweeping rules. The new laws announced are essentially aimed at controlling the runaway home prices in Toronto and Vancouver. They include:

Expanding stress test.

Unlike before, it will cover even those buyers who have put up more than a 20% down payment. Hopefully, aimed to assure the mortgagee that the home buyer will afford the mortgage if interest levels rise. Through this, the Government hopes to calm fears that high market prices for homes in Toronto and Vancouver would lead to loan defaulting in the future.

Tightening a tax loophole.

In the current system capital gains tax is still waived on the sale of primary residence. However, the Canada Revenue Authority (CRA) demands a report of any sale of property to them. Therefore, this new obligation of reporting to CRA aims at blocking new foreign buyers. Most are known to buy and sell homes claiming primary resident tax exemptions they aren’t entitled.

Introducing consultations with lenders.

The Government is currently required to cover 100% if a buyer defaults on payment. Additionally, this is unsustainable pushing the government to roll up a consultation paper with a new sharing formula with lenders. Lenders such as banks and other financiers would have to take an added risk, meaning higher rates for homeowners. The Government would also reduce its risk in case of public national mortgage default.

Imposing new restriction on government Insurance cover.

Following the new restriction, the repayment period must be 25 years or less. Furthermore, if the purchase price is less than $1 million and buyer must have a 600 credit score or more. Finally, the possessions are also to be occupied by the owner. Also, the government’s will be sheltered exposure to loans of over $1million through these new changes. Primarily, Vancouver and Toronto were the primary targets through the new changes.

Have this new law affected the Housing Market in Ottawa?

No, Ottawa is still a city of opportunities when it comes to real estate, but that may change soon. Realtors are reporting a lot more multiple offers and homes selling within a short timeframe than they have seen for a while. The average price gains were an identical 5.3 per cent year over year for both residential and condominium sales. The average sale price in March was $415,467 for residential properties and $272,597 for condos.

Sales of million-dollar properties skyrocketed substantially during the first three months of 2017 which contributed to the year-over-year gain in house prices. Calculations show that approximately 50 to 60 buyers shelled out more than $1 million each for residences and condominiums in the first quarter of 2017 compared to just 22 during the same period in 2016.

Real Estate over the many years.

Property value in Ottawa has appreciated value significantly throughout the years. To put it in context, say in 1993 you bought a house worth $150,000 with 20% down-payment. Furthermore, you were 25 years and the repayment period is 20 years. In reality, by now you would have completed the loan while still under 50, and the house will be worth $360,000.
CMHC acknowledges that overall average prices of homes in Ottawa have continued to soar while average salaries are stalling. In 2015 average house prices were $368,000, $376,000 in 2016 and expected to increase to $385,000 in 2017. Moreover, the number of new homes built will continue to rise in 2017 and the coming year. Until now, Ottawa’s residential resale home market was steady and balanced.

The future of Ottawa’s Real Estate.

The future looks bright for real estate in Ottawa, good time for you to get into the market. History shows that house prices including condominiums will continue to rise. Yes, we may have corrections or slow growth, but over time it’s still a sound investment. All the figures show a housing market on the rise in Ottawa. Finally, all indicators, after the adoption of the new rules that property process for cheap housing will likely increase. Guess this your time to get into the market before the prices soar. Learn more about the difference Buyers Agent and Sellers Agent in Ottawa.

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