Ottawa Real Estate Board Market Update for August from Jeff Lyons of Power Lyons Property Marketing

Ottawa resale market on the up and
up

Members of the Ottawa Real Estate Board sold 1,219
residential properties in August through the Board’s Multiple Listing Service®
system, compared with 1,145 in August 2012, an increase of 6.5 per cent. The
five-year average for August sales is 1,202.

“It has been one year since
the Canadian Government introduced the new mortgage rules, and although the
Ottawa market has been slow-moving since the beginning of the year, this month’s
numbers are quite the opposite,” says Tim Lee, President of the Ottawa Real
Estate Board. “With both residential and condo units sold up a respectable
amount since last year, it breaks the downward cycle. In addition, average sale
prices evened out in August, creating a welcomed lull in inflating property
prices.”

August’s sales included 272 in the condominium property class,
and 947 in the residential property class. The condominium property class
includes any property, regardless of style (i.e. detached, semi-detached,
apartment, townhouse, etc.), which is registered as a condominium, as well as
properties which are co-operatives, life leases and timeshares. The residential
property class includes all other residential properties.

The average
sale price of residential properties, including condominiums, sold in August in
the Ottawa area was $348,519, a slight increase of 0.4 per cent over August
2012. The average sale price for a condominium-class property was $257,494, a
decrease of 5.4 per cent over August 2012. The average sale price of a
residential-class property was $374,663, an increase of 1.8 per cent over August
2012. The Board cautions that average sale price information can be useful in
establishing trends over time but should not be used as an indicator that
specific properties have increased or decreased in value. The average sale price
is calculated based on the total dollar volume of all properties
sold.

“Inventory on hand has decreased since last month, and is starting
to return to more normal levels,” says Lee. “Ottawa continues to be a healthy,
balanced market, and as always, a great city to live in. With a strengthening
economy and historically low interest rates, Ottawa consumers remain in a very
enviable position.” Talk to an Ottawa-area REALTOR® today for help with buying
and/or selling a home.

The Ottawa Real Estate Board is an industry
association of over 2,900 sales representatives and brokers in the Ottawa area.
Members of the Board are also members of the Canadian Real Estate Association.

Info for Ottawa Home Buyers from Jeff Lyons of Power Lyons Property Marketing

I often get asked by both buyers and sellers what the total closing costs are. When I saw this article from the Real Estate Council of Ontario, I thought that it would be great to share. Please don’t hesitate to contact Jeff Lyons with Ottawa Power Lyons Property Marketing Team for more information…..

Enjoy..

Pre Closing Cost

Home inspection

Getting a home inspection is a smart decision, because a qualified home inspector can identify underlying problems with a home’s major systems, like heating and electrical. To find a qualified home inspector speak to your real estate professional or check the websites of various home inspector associations.

Appraisal and/or survey

Your lender (e.g., a bank) may require an appraisal or survey of the property you want to buy before they agree to provide financing. This is to double check that the value of the home or property matches its sales price.

Closing Costs

Land transfer tax

In Ontario, a land transfer tax of up to 2 per cent of the purchase price applies. In Toronto, an additional tax applies, also up to 2 per cent. First-time homebuyers are eligible for a refund of the tax. Talk to your real estate professional about your eligibility.

Mortgage insurance

If the down payment on your home is less than 20 per cent of its sales price, you will be required to buy mortgage insurance. Rates depend on how much you are borrowing. For more information, visit www.cmhc-schl.gc.ca. Legal fees

There are a number of legal documents and contracts involved in the purchase of a home. Your lawyer will do a title search on the home to ensure the seller can actually sell the property and that there are no liens against it. They will also register the deed and mortgage for you. Find an Ontario lawyer by visiting the Law Society of Upper Canada www.lsuc.on.ca.

Title insurance

Title insurance protects you against title fraud, errors in public surveys, encroachment issues with neighbours and more. Speak to your lawyer during the closing period for more details.

Adjustments

Adjustments are costs that the seller pre-paid but which you now owe because you’re the one who’s going to be living in the home (e.g., property taxes, maintenance fees, rental fees for hot water heaters). You will need to refund the seller for these.

Home insurance

You must have insurance on your home before lenders will release the funds for the sale to close.

Harmonized Sales Tax (HST)

Newly-constructed homes are subject to HST of 13 per cent, although buyers may be eligible for rebates from both the Ontario and Federal governments. HST does not apply to resale homes.

Tarion new home warranty program

In Ontario, new homes are covered by a warranty program, administered by Tarion. The warranty protects new home buyers against various issues that may emerge, including structural defects in the home. It also offers deposit protection to buyers of new homes. Sometimes the Tarion enrollment fee is included in the purchase price and other times it is due at closing. For more information, visit www.tarion.com.

After-closing costs

Moving costs

Moving costs vary widely based on how much stuff you have, how far you’ll be moving, and whether you’ll hire a professional mover or rent a truck and move yourself.

Utility and service hook-ups

Some gas, hydro, water and telecommunications companies charge a hook-up fee.

Renovations and repairs

If you want to make major renovations after move-in, it can add significantly to your costs. A home inspection or disclosure from the seller may also identify repairs that are needed.

Appliances, furniture and decorations

Once you’re in your new space, there’s a good chance you’ll want fresh décor to make it your own.

Latest Market Update from the Ottawa Real Estate Board

Jeff Lyons from Power Lyons Property Marketing would like to share the following news release concerning the Ottawa Housing Market.

Condo sales dip below average, residential units remain steady

Ottawa, July 4, 2013 – Members of the Ottawa Real Estate Board sold 1,594 residential properties in June through the Board’s Multiple Listing Service® system, compared with 1,662 in June 2012, a decrease of 4.1 per cent.

“June sales are down a bit since last month, but even though there’s a slight decrease, it seems to be the norm throughout the years,” says Ansel Clarke, Immediate Past President of the Ottawa Real Estate Board. “Since June 2003, with the exception of June 2011, sales have consistently decreased from May to June. This shows continued stability in the market over the last decade.”

June’s sales included 314 in the condominium property class, and 1,280 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“The condo market has dipped below average. The five-year average for June condo sales is 368 – putting June in at 17 per cent lower than the average,” says Clarke. “Although, when you look at residential units sold, without looking at condo sales, the decrease from year to year is only one per cent. Inventory on hand had been building up since the beginning of the year, but we’re now starting to see a small decrease, which will bring the Ottawa market into an even more balanced buyer/seller territory.”

The average sale price of residential properties, including condominiums, sold in June in the Ottawa area was $359,232, an increase of 1.9 per cent over June 2012. The average sale price for a condominium-class property was $265,410, a decrease of 4.3 per cent over June 2012. The average sale price of a residential-class property was $382,248, an increase of 2.2 per cent over June 2012. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

The Ottawa Real Estate Board is an industry association of over 2,900 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.