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The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totaled 1,439 units in June 2024. This was a marginal increase of 0.1% from June 2023.

Home sales were 7.5% below the five-year average and 13.2% below the 10-year average for the month of June.

On a year-to-date basis, home sales totaled 7,109 units over the first half of the year — an increase of 4.2% from the same period in 2023.

“Ottawa continues to see steady activity as we head into the summer market,” says OREB President. “Unlike recent years, buyers have more room to wait, evaluate and be selective when searching for the right property at the right price, leading to a slight uptick in the days on market. Sellers are making moves as evidenced by the inventory and listings. After recovering from last year’s slowdown, Ottawa’s market performance is nearly back on par and continues to make gains.

“It’s going to be an interesting summer and next half of the year. As confidence builds, there will be ample opportunities for both parties. Now is the time for sellers to ensure their property is at its best and priced appropriately to attract buyers who remain slightly reluctant. Buyers would do well to remember that inventory levels — and competition — can swing quickly in Ottawa’s tight market.”

By the Numbers – Prices:

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.

The overall MLS® HPI composite benchmark price was $647,700 in June 2024, a decrease of 0.5% from June 2023.

The benchmark price for single-family homes was $734,300, down 0.2% on a year-over-year basis in June.

By comparison, the benchmark price for a townhouse/row unit was $501,500, down 1.6% compared to a year earlier.

The benchmark apartment price was $420,800, down 1.7% from year-ago levels.

The average price of homes sold in June 2024 was $686,535 increasing 0.5% from June 2023. The more comprehensive year-to-date average price was $681,345, increasing by 1.6% from the first six months of 2023.

The dollar volume of all home sales in June 2024 was $987.9 million, up 0.7% from June 2023.

OREB cautions that the average sale price 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 calculation of the average sale price is based on the total dollar volume of all properties sold. Prices will vary from neighbourhood to neighbourhood.

By the Numbers – Inventory & New Listings:

The number of new listings saw an increase of 4.7% from June 2023. There were 2,469 new residential listings in June 2024. New listings were 0.8% below the five-year average and 1% below the 10-year average for the month of June.

Active residential listings numbered 3,585 units on the market at the end of June 2024, a gain of 45.5% from June 2023. Active listings were 57.8% above the five-year average and 1.9% below the 10-year average for the month of June.

Months of inventory numbered 2.5 at the end of June 2024, up from 1.7 in June 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Members of the Ottawa Real Estate Board (OREB) sold 1,545 residential properties in May 2024. This was a

decrease of 9.2% from May 2023.

“Ottawa’s early spring market was unsurprisingly steady,” says OREB's President. The increase in new listings indicate that sellers are more confident that properties are moving as more activity returns to the market. Some sellers, however, were likely waiting for the Bank of Canada’s interest rate announcement to see if it would affect their purchasing power. The first interest rate cut in four years is good news, but expectations still need to be managed as long as supply issues and high home prices persist.”

“Interest rate cuts, for example, can’t help get more homes built and make them affordable when the City of Ottawa is hiking development fees — a counterproductive move that OREB is firmly against.”

The overall MLS® HPI composite benchmark price was $651,300 in May 2024, a marginal gain of 1.2% from May 2023.

The benchmark price for single-family homes was $736,000, up 1.1% on a year-over-year basis in May.

By comparison, the benchmark price for a townhouse/row unit was $517,500, up 2.1% compared to a year earlier.

The benchmark apartment price was $425,000, up 2.0% from year-ago levels.

Members of the Ottawa Real Estate Board (OREB) sold 1,456 residential properties in April 2024. This was an increase of 8.9% from April 2023.

“It’s a typical spring in Ottawa’s real estate market,” says OREB's President. What sets it apart from recent springs is a restored mutual confidence among both buyers and sellers. Buoyed by recent sales activity, sellers are more confident that they can move their property as evidenced by the uptick in listings. For buyers, the pressure of the pandemic market has eased and they’re comfortable taking the time to find the property that best suits their needs. The pace is still conservative while the economy is holding some back, but overall Ottawa’s market is strong and stable, and that’s a win-win.”

The overall MLS® HPI composite benchmark price was $643,700 in April 2024, a marginal gain of 1.6% from April 2023.

The benchmark price for single-family homes was $727,700, up 1.6% on a year-over-year basis in April.

By comparison, the benchmark price for a townhouse/row unit was $500,800, up slightly at 1.0% compared to a year earlier.

The benchmark apartment price was $423,100, up 2.1% from year-ago levels.

“The real story is in the details,” says OREB's President. “Looking more closely at what’s selling and for how much suggests the demographic of buyer is changing. While most of Ottawa’s market is in balanced territory, townhomes have shifted to the seller’s market side as supply shrinks. Single-family homes are the most active market, which is inflating the average sale price. The next few months will be both telling and interesting as people continue to redefine their post-pandemic normal amid an upcoming federal election and back-to-work mandate for government workers. The detailed insights and data that REALTORS® have unique access to will be invaluable in helping buyers fine-tune their strategy for their specific neighbourhood and property type.”

Members of the Ottawa Real Estate Board (OREB) sold 1,165 residential properties in March 2024. This was an increase of 10% from March 2023.

“Ottawa’s real estate market is overall healthy, providing fertile ground for an active spring and summer ahead,” says OREB's President. “The increases in new and active listings indicate that sellers are feeling more confident, boosted by the rise in showing activity. Buyers, however, aren’t acting as quickly as they perhaps should be — likely because affordability and supply are still roadblocks”

“Something is around the corner in this market, though. People have adjusted to post-pandemic life and that means revisiting their housing needs. Some are downsizing or moving in from the city’s outskirts. Others are looking at more suitable properties that better meet all their needs, which weren’t accessible to them in the peak pandemic market. That’s creating pressure from multiple angles on the mid-range property market, which we know is tight to begin with in Ottawa. Just because you’re in the real estate market, doesn’t mean you’re safe from the market. If you’re a buyer or seller looking to make a move, I wouldn’t wait too long.”

The overall MLS® HPI composite benchmark price was $636,700 in March 2024, a gain of 2.7% from March 2023.

The benchmark price for single-family homes was $719,000, up 2.6% on a year- over-year basis in March.

By comparison, the benchmark price for a townhouse/row unit was $489,800, up slightly at 0.9% compared to a year earlier.

The benchmark apartment price was $418,500, up 3.7% from year-ago levels.

The number of homes sold through the MLS® System of the Ottawa Real Estate Board totaled 886 units in February 2024. This was an increase of 15.2% from February 2023.

Home sales were 13.8% below the five-year average and 5.7% below the 10-year average for the month of February.

“Even with higher prices and the interest rate holding steady, Ottawa is a strong, active market,” says OREB President Curtis Fillier. “With metrics across the board up from last year, it’s clear both buyers and sellers are making moves. The metrics, however, don’t tell us about all the people relegated to the sidelines because affordability remains out of reach for many.”

The Municipal Property Assessment Corporation (MPAC) recently reported that “communities with homes under $500,000 are becoming increasingly scarce.” A decade ago, 74% of Ontario residential properties had a home value estimate of less than $500,000 but that number has dropped to just 19% today.

“REALTORS® know firsthand there is persistent demand for housing in Ottawa, and our market’s activity is constrained by a lack of affordable and suitable supply,” says Fillier. “That’s why we’re currently advocating for impactful measures such as allowing four residential units on property lots and getting rid of exclusionary zoning. There’s a missing middle that we need to build up.”

By the Numbers – Prices:

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.

• The overall MLS® HPI composite benchmark price was $628,500 in February 2024, a gain of 2.8% from February 2023.

  • The benchmark price for single-family homes was $708,500, up 3.1% on a year-over-year basis in February.

  • By comparison, the benchmark price for a townhouse/row unit was $495,000, up slightly at 0.6% compared to a year earlier.

  • The benchmark apartment price was $417,000, up 2.7% from year-ago levels.

• The average price of homes sold in February 2024 was $651,340, increasing 2% from February 2023.

• The dollar volume of all home sales in February 2024 was $577 million, up 17.5% from the same month in 2023.

OREB cautions that the average sale price 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 calculation of the average sale price is based on the total dollar volume of all properties sold. Prices will vary from neighbourhood to neighbourhood.

By the Numbers – Inventory & New Listings

• The number of new listings saw an increase of 29.5% from February 2023. There were 1,539 new residential listings in February 2024. New listings were 10.3% above the five-year average and 3.3% below the 10-year average for the month of February.

• Active residential listings numbered 2,158 units on the market at the end of February 2024, a gain of 16.3% from February 2023. Active listings were 59.6% above the five-year average and 17.7% below the 10-year average for the month of February.

• Months of inventory numbered 2.4 at the end of February 2024, unchanged from February 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The number of homes sold through the MLS® System of the Ottawa Real Estate Board totaled 629 units in January 2024. This was an increase of 16.5% from January 2023.

Home sales were 10.7% below the five-year average and 3.9% below the 10-year average for the month of January.

“Ottawa’s market activity is seeing positive gains over last year but it’s still a relatively quiet market even by pre-pandemic standards,” says OREB President Curtis Fillier. “While REALTORS® are telling us there’s lots of showing activity — probably thanks in part to the forgiving winter thus far — it’s not all translating to sales. This tells us that buyers are back out there looking, but still approaching cautiously. During the pandemic market, buyers had to move quickly and sometimes settle for a property that didn’t check all their boxes. Today, buyers are using the slower market to take the time needed to find their perfect place. Sellers would be well-advised to adjust their expectations and thoughtfully consider their pricing and timing strategy using the negotiating expertise and hyper-local data their REALTOR® can provide.”

“Ottawa’s market conditions can fluctuate quickly, though, because our supply is chronically low,” adds Brandon Reay, OREB’s policy and external relations manager. “Ottawa needs more suitable and affordable homes to address the housing crisis, and we need to increase density to meet population demands. We can’t restore and grow upon the market activity Ottawa saw five and ten years ago without more houses for people to buy. OREB recommends direct solutions for meaningful policy change, including streamlining the process at the Ontario Land Tribunal, eliminating exclusionary zoning, and permitting four units on residential lots. To meet the aggressive housing targets, we need to close the labour gap with investments in colleges and trade schools. We don’t need any more reactionary and distracting policy, like the federal government’s extension of the foreign buyers ban.”

By the Numbers – Prices:

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.

• The overall MLS® HPI composite benchmark price was $621,600 in January 2024, a gain of 3.2% from January 2023.

• The benchmark price for single-family homes was $703,500, up 3.7% on a year-over-year basis in January.

• By comparison, the benchmark price for a townhouse/row unit was $462,200, down 2.1% compared to a year earlier.

• The benchmark apartment price was $418,500, up 3.7% from year-ago levels.

• The average price of homes sold in January 2024 was $631,722, increasing 1.8% from January 2023.

• The dollar volume of all home sales in January 2024 was $397.3 million, up 18.6% from the same month in 2023.

OREB cautions that the average sale price 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 calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.

By the Numbers – Inventory & New Listings

• The number of new listings saw an increase of 7.3% from January 2023. There were 1,271 new residential listings in January 2024. New listings were 17.5% above the five-year average and 0.8% above the 10-year average for the month of January.

• Active residential listings numbered 1,961 units on the market at the end of January 2024, a gain of 4.5% from the end of January 2023.

• Active listings were 57.4% above the five-year average and 16.6% below the 10-year average for the month of January. Months of inventory numbered 3.1 at the end of January 2024, down from the 3.5 months recorded at the end of January 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Ottawa MLS® Home Sales Hold Steady in Lackluster September

The number of homes sold through the MLS® System of the Ottawa Real Estate Board (OREB) totaled 946 units in September 2023. This was unchanged from September 2022.

Home sales were 29.6% below the five-year average and 23.6% below the 10-year average for the month of September.

On a year-to-date basis, home sales totaled 9,889 units over the first nine months of the year. This was a large decline of 13% from the same period in 2022.

“Sales activity came in right on par with where it stood at the same time last year but was still running well below typical levels for a September,” said Ken Dekker, OREB President. “New listings have surged in the past several months, which has caused overall inventories to begin gradually rising again. However, available supply is still low by historical standards, and we have ample room to absorb more listings coming on the market. Our market is also right in the middle of balanced territory, and while MLS® Benchmark prices are down from last year they are still trending at about the same levels from 2021.”

By the Numbers – Prices:
The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.

• The overall MLS® HPI composite benchmark price was $643,600 in September 2023, nearly unchanged, up only 0.5% compared to September 2022.

  • The benchmark price for single-family homes was $727,500, essentially unchanged, up just 0.6% on a year-over-year basis in September.

  • By comparison, the benchmark price for townhouse/row units was $510,900, a small gain of 2.5% compared to a year earlier, while the benchmark apartment price was $422,300, falling by 1.1% from year-ago levels.

• The average price of homes sold in September 2023 was $675,412, increasing by 2.7% from September 2022. The more comprehensive year-to-date average price was $672,837, a decline of 6.5% from the first nine months of 2022.

• The dollar value of all home sales in September 2023 was $638.9 million, up modestly by 2.7% from the same month in 2022.

OREB cautions that the average sale price 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 calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.

By the Numbers – Inventory & New Listings

• The number of new listings saw an increase of 9.8% from September 2022. There were 2,259 new residential listings in September 2023. New listings were 4.8% above the five-year average and 7% above the 10-year average for the month of September.

• Active residential listings numbered 2,997 units on the market at the end of September, a sizable gain of 14% from the end of September 2022. Active listings haven’t been this high in the month of September in five years.

• Active listings were 33.9% above the five-year average and 18.5% below the 10-year average for the month of September.

• Months of inventory numbered 3.2 at the end of September 2023, up from the 2.8 months recorded at the end of September 2022 and below the long-run average of 3.3 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Canadians buying homes with family, friends to combat housing affordability woes: Royal LePage survey

According to a recent Royal LePage survey conducted by Leger, six per cent of Canadian homeowners co- own their property with another party, not including their spouse or significant other. Of this group, 89 per cent co-own with family members and seven per cent with friends. Another eight per cent co-own with someone who is not a friend or family member.

Concerning their co-owning situation, 44 per cent of co-owners say that they and all fellow co-owners live in the home together. A smaller percentage (28%) say that they co-own a home with another person(s), but they do not cohabitate. Six per cent of respondents say that they co-own a home with another person(s) and neither party uses the home as a primary residence, rather as an investment or recreational property.

The COVID-19 pandemic forced some Canadians to reconsider their living situation, with many choosing to share living space with friends or family in a time of isolation.

“Different generations of families living under one roof is not a new phenomenon, but has been growing in popularity in recent years,” said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd. “Census data shows that multigenerational households are now the fastest growing household type in Canada. Households group together for many reasons, including communal care for elderly parents, help raising children, cultural preferences or simply to be together.

However, the decision to live together, including co-owning a home, is a decision increasingly made for financial reasons. In an environment where home prices and interest rates have risen quickly and sharply, and where the threshold to qualify for a mortgage has become much more challenging, Canadians are pooling their resources and buying homes together. In cases where homebuyers cannot afford to purchase on their own, they are combining their buying power with their parents, children, siblings or even friends.” “In a market beset by reduced home supply, escalating prices, tightened mortgage qualification requirements, and the highest borrowing rates in more than two decades, many buyers are having difficulties securing the property that they want. Some Canadians are using co-ownership as a way of boosting their borrowing capacity or lowering their monthly mortgage costs, helping them achieve their goal of home ownership,” said Yolevski. “By dividing the cost of a home between more people, Canadians can not only get their foot on the property ladder more easily, but also expand their home search to more desirable locations or larger properties that may not have been accessible with their budget alone.”

Of those who co-own a home with another person(s) and live in the home together, nearly half (49%) say that they purchased the home with another party because they would not have been able to afford a home on their own. Thirty-eight per cent say that by co-owning, they were able to afford a larger property and/or a property in a more desirable neighbourhood. Thirty per cent say that they purchased a co-owned home because they required family support with childcare or taking care of elderly relatives.

“Opting to co-own with friends or family is not as simple as signing a piece of paper next to someone else's name – co-owning a home often comes with meaningful lifestyle changes, and requires in-depth conversations over financial, legal and personal obligations,” said Yolevski. “Regardless of whether you live in the home with your fellow co-owners or not, the responsibilities of owning a home with other people are shared, but so are the benefits.”

Ottawa Resale Market Stalls in August, Supply Challenges Persist

Members of the Ottawa Real Estate Board (OREB) sold 1,196 residential properties in August through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,130 in August 2022, an increase of 6%. August’s sales included 903 in the freehold-property class, up 7% from a year ago, and 293 in the condominium-property category, a 2% increase from August 2022. The five-year average for total unit sales in August is 1,525.

“Sales activity was up marginally on a year-over-year basis in August but remained well below the historical average for this time of year,” says Ken Dekker, OREB President. “There is no shortage of demand given increased immigration and the large Canadian population cohort entering the market. The lack of suitable, affordable housing is a hindrance. High borrowing costs and economic uncertainty are impacting both sellers and buyers, which we expect will continue to result in further market fluctuations.”

Janice Myers, OREB CEO, highlights that these latest figures coincide with the City of Ottawa’s allocation of $110 million for affordable housing. “Even if interest rates were to drop and the economy stabilized, housing will remain out of reach for many Ottawa residents. Collaboration among all levels of government and stakeholders is vital to improving affordability for homeowners and tenants alike. And we need to expand provincial regulations, allowing four or more residential dwelling units on serviced lots, to promote higher-density housing.”

By the Numbers

Average Prices*:

• The average sale price for a freehold-class property in August was $709,739, an increase of 0.5% from 2022, and a 5.6% decrease over July 2023 prices.

• The average sale price for a condominium-class property was $425,968 an increase of 1% from a year ago, although 1.4% lower than July 2023 prices.

• With year-to-date average sale prices at $732,220 for freeholds and $432,571 for condos, these values represent an 8% decrease over 2022 for freehold-class properties and a 5.5% decrease for condominium-class properties.

Inventory & New Listings:

• August’s new listings (2,228) increased 7% over August 2022 (2,090) and were on par with last month (2,234). The 5-year average for new listings in August is 2,177.

• Months of Inventory for the freehold-class properties has increased to 3 months from 2.9 months in August 2022 and 2.7 months in July 2023.

• Months of Inventory for condominium-class properties remains on par with August 2022 at 2.2 months, a slight decrease from 2.3 months in July 2023.

• Days on market (DOM) for freeholds have increased to 31 days from 25 days in August 2022 and 26 days in July 2023.

• Days on market (DOM) for condos have increased to 29 days from 28 days in August 2022 and 28 days in July 2023.

REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 4,571 properties compared to 4,172 last year at this time, an increase of 10%.

* OREB cautions that the average sale price 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 calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.

Stabilized July Resale Market Showing Positive Price Change

Members of the Ottawa Real Estate Board (OREB) sold 1,263 residential properties in July through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,102 in July 2022, an increase of 15%. July’s sales included 979 in the freehold-property class, up 18% from a year ago, and 284 in the condominium-property category, a 6% increase from July 2022. The five-year average for total unit sales in July is 1,621.

“Both transactions and average prices are up from last July indicating consumers remain confident in the market notwithstanding the two recent quarter-percent interest rate hikes by the Bank of Canada. We’re only a month into the third quarter, but based on July’s positive indicators, we are likely to see solid year-over-year results in the second half,” says Ottawa Real Estate Board President Ken Dekker.

By the Numbers – Average Prices*:

• The average sale price for a freehold-class property in July was $754,188, an increase of 5% from 2022, and a 1% increase over June 2023 prices.

• The average sale price for a condominium-class property was $435,094 an increase of 2% from a year ago, although 3% lower than June 2023 prices.

• With year-to-date average sale prices at $735,103 for freeholds and $433,447 for condos, these values represent a 9% decrease over 2022 for freehold-class properties and a 6% decrease for condominium-class properties.

“July’s average prices are showing positive gains over last year, and year-to-date numbers, as expected, are still closing the gap from the peak pandemic market activity of early 2022. Additionally, inventory continues to climb steadily as new listings are added to the housing stock, creating more options for homebuyers. August may be a slower month in Ottawa, but I wouldn’t take a vacation from shopping for your home.”

By the Numbers – Inventory & New Listings:

• July’s new listings (2,234) were 6% lower than July 2022 (2,364) and down 19% from June 2023 (2,755). The 5-year average for new listings in July is 2,336.

• Months of Inventory for the freehold-class properties has decreased to 2.7 months from 2.9 months in July 2022 but increased from 2.1 months in June 2023.

• Months of Inventory for condominium-class properties has decreased to 2.3 months from 2.5 months in July 2022, but is up from 1.4 months in June 2023.

• Days on market (DOM) for freeholds have increased to 26 days from 20 days in July 2022 and 23 days from June 2023.

• Days on market (DOM) for condos have increased to 28 days from 20 days in July 2023 and 27 days in June 2023.

“Although we are in a sellers’ market again, the pandemic’s frenzy has calmed considerably. Sellers need to manage their expectations with true market activity — not every property will automatically see multiple offers or immediate sales. Ultimately, a property’s price is determined by how much a buyer is willing to pay. Using the marketing and negotiation skills of a professional licensed REALTOR® is instrumental for both buyers and sellers in this fluid market.”

REALTORS® also help with finding rentals and vetting potential tenants. Since the beginning of the year, OREB Members have assisted clients with renting 3,921 properties compared to 3,528 last year at this time, an increase of 11%.

Have You Considered A 50/50 Mortgage?

Hybrid mortgages – also known as 50/50 mortgage products – include an equal mix of fixed-rate and variable-rate components within your single mortgage. This means you get the best of both worlds – the security of fixed repayments with the flexibility of a variable rate. Although there was a time in recent years when mortgage experts considered a variable-rate mortgage as the obvious choice to save mortgage consumers money over the long term, with fixed rates remaining near historic lows, a 50/50 mortgage may be a great alternative for you.

In essence, since it's extremely difficult to accurately predict rates over the long term, a 50/50 mortgage offers interest rate diversification, which can help reduce your level of risk.

If you opt for a 50/50 product, half of your mortgage is locked into a five-year fixed rate and half is at a five-year variable rate. You can lock in your variable-rate portion at any time without paying a penalty. As well, each portion of the 50/50 mortgage operates independently – like two separate mortgages – yet the product is registered as only one collateral charge.

The 50/50 mortgage product is well- suited to a variety of borrowers, including those who:

• Would normally go fully variable but are afraid prime rate is at its bottom

• Aren't comfortable being locked into a fully fixed rate

• Can't decide between a fixed or variable mortgage

• Savvy first-time homebuyers

Some features of the 50/50 mortgage include:

• 20% annual lump-sum pre-payment privileges

• 20% annual payment increase ability

• Portability (the option to transfer your existing loan amount to a new property without penalty)

As the 50/50 option is a fairly new offering, according to a recent study by the Canadian Association of Accredited Mortgage Professionals (CAAMP), 5% of Canadian mortgage holders have 50/50 mortgages compared to 28% with variable-rate mortgages and 68% with fixed-rate mortgages. But many experts believe the 50/50 mortgage is quickly gaining momentum.

If you would like a mortgage agent to take a look at your credit situation and give you suggestions - contact a mortgage broker today.

June’s Resale Market Eases into Summer

Members of the Ottawa Real Estate Board (OREB) sold 1,658 residential properties in June 2023 compared with 1,493 in June 2022, an increase of 11%.

“Although June’s transactions surpassed last year’s, the number of sales, average prices, and new listings declined on a week-to-week basis over the course of the month. Compounded by the typical summer decline in activity, the Bank of Canada’s interest rate adjustment at the beginning of the month may have also flattened the curve says OREB's President.

“Supply is trending in the right direction. The increase in inventory is encouraging and indicates sellers have confidence in the market. A growing resale housing stock will result in more selection for buyers and more sales.”

“We are looking forward to a strong second half of 2023 in terms of sales volume and prices compared to last year. Whichever side of the transaction you are on, the advice of a professional REALTOR® who has their pulse on the week-to-week variabilities in Ottawa’s resale market is priceless.”

The average sale price of a residential-class property sold in June in the Ottawa area was $746,445, a decrease of 4% from 2022, but still on par with May 2023 prices. The average sale price for a condominium-class property was $448,380 an increase of 2% from a year ago and up 1% over May 2023 prices.

Should you buy or sell your home first? Here’s how to decide

If you're a homeowner who's thinking about moving, then you've probably pondered the age-old question — should I sell my home before I buy a new one, or buy my next property first?

Whichever option you choose, it's an intensely personal decision that should take into account individual finances,risk tolerance and current market conditions. Some homeowners who have a strict timeline or budget may take comfort in selling their current residence first, while others who have more flexibility will opt to buy their next home before selling.

If you're on the fence about which option works best for you, here are a few insights that can help you make this crucial decision.

Buying your new home first

For homebuyers who are looking for a specific property and want certainty on their moving timeline, buying their new home first may be the best option.

Buying your next home before selling your current one allows you to take your time searching for a property. This is especially beneficial to buyers who want to be in a particular neighbourhood, school district, or desire specific features in a home. Once you've bought your new home, you'll know exactly when your closing date will be, which will help with coordinating the sale of your existing residence.

While the major advantage of buying first is a pre-determined timeline, this can force a short runway for preparing your current home for sale. That means updating, staging and marketing your property will need to happen within a defined time frame, possibly a short one. The risk: if you are unsuccessful in selling your property quickly, you could be stuck with paying two concurrent mortgages. Although bridge financing can be used as a temporary solution to cover the payments of your new and current home,it is expensive and is not applicable in cases where your property hasn't sold yet.

Buying a new property first is best suited to a seller's market, where demand is higher than the number of homes available, and your property has a better chance of selling quickly. For anyone who is working with a strict budget and is relying on the sale of their existing home to determine how much they can afford to buy, purchasing before selling is not recommended.

Selling your current home first

If you're someone who prefers certainty regarding your finances and the sale of your home before making any big real estate decisions, then selling your home before buying a new one may be best.

The obvious benefit to selling your home first is gaining a clear financial picture before your next property purchase. Once you sell your home, you'll know exactly when your closing date is and how much you can afford to spend on a new place. If you're relying on the capital from the sale of your current property, or you're not in a position to financially bridge the gap between the two homes, then selling first may be the best choice for you.

On the flip side, selling first can create pressure to quickly buy a new home. This can be especially tough in markets with low inventory, where homeowners may feel rushed to snap up whatever property is available. For those who are looking for a very specific property that may require more time to find, selling their current home before buying may not be in their best interest. However, if you feel more comfortable selling first, it's a good idea to have a backup plan in place in the event that you can't find a new home quickly. Consider living with family or friends temporarily, or securing a short-term rental.

How your realtor can help

Whether you decide to buy or sell first, your real estate agent is a great resource and can help you make this important decision by outlining each scenario, and determining which option is right for you based on the current market and your unique situation. Their expertise on local market trends will help you determine whether buying or selling first is best for you.

Want to speak with a Royal LePage agent in your community? Reach out. Helping you is what we do!

Ottawa resale market heats up in May

Sale increase for the first time since February 2022

Members of the Ottawa Real Estate Board (OREB) sold 1939 residential properties in May through the Board's MultipleListing Service@ (MLS) System, compared with 1830 in May 2022, an increase of 6%. May's sales included 1 477 in the freehold-property class, up 8% from a year ago, and 462 in the condominium-property category, a 1% increase from May 2022. The five-year average for total unit sales in May is 1,961.

Typically the highest-selling month, May's transactions did not disappoint," says OREB's President."This month we saw the first year-over-year unit sales volume increase since February 2022. It is a promising year for sellers barring any interest rate adjustments, as we saw a correlated drop in sales every time there was an interest rate hike in 2022.

However, with only five to six weeks of inventory, we are ina strong seller's market. With the pent-up high demand and sales volume increasing, we are likely to see upward pressure on prices as demand continues to outstrip supply!

By the Numbers一Average Prices*.

The average sale price for a freehold-class property in May was $745,902, a decrease of 7% from 2022 but still on par with April 2023 prices.

The average sale price for a condominium-class property was $442859, decreasing 6% from a year ago. However, it marks a 2%increase over April 2023 prices.

With year-to-date average sale prices at $727,728 for freeholds and $428,394 for condos, these values represent a 12% decrease over 2022 for freehold-class properties and a 9% decrease for condominium-class properties.

We are not seeing steep price escalations yet. May average prices stayed on par with April's, although prices are well over what we saw at the end of 2022. With demand mounting in Ottawa's chronically undersupplied market, expect the average sale price will surpass last year's figures for a month over the same month in the latter half of 2023 again, provided we do not see interest rate hikes.

Blythe Numbers-Inventory & New Listings:

May's new listings (2,822) were 9% lower than May 2022(3,117) and up 32% from April 2023 (2,140). The 5-year average for new listings in Mayis 2922.

Months of Inventory for the freehold-class properties increased to 1.5 months from 1.2 months in May 2022 but down from 1.9 months in April 2023.

Months of Inventory for condominium-class properties has increased to 1.3 months from 1 month in May, 2022although down from 19 months in April 2023.

Days on market (DOM) for freeholds decreased from 27 to 23 days and 33 to 26 days for condos compared to last month.

Given our housing stock challenges, some neighbourhoods are again in multiple offer territory. REALTORS have up-to-the-minute market data and are best positioned to help both buyers and sellers in this evolving competitive resale market.

Transitioning From Renter To Homeowner

Transitioning from renter to homeowner is one of the biggest decisions you'll make throughout your lifetime. That's why it's essential to surround yourself with a team of experts - including both a mortgage and real estate professional- to walk you through the steps to home ownership, answer all of your questions and concerns, help you decide what kind of home you can afford and get you pre-approved for a mortgage.

With interest rates still hovering around “emergency” levels - low rates never before seen by your parents and even your grandparents - now is an ideal time for first-time homebuyers to embark upon homeownership.

Down payment

The main reason many renters feel they can't afford to purchase a home has to do with saving for a downpayment. But there are many solutions available today that can help first-time buyers with their down payments.

Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.

Better yet, there are programs available from some financial institutions where they will offer a “free down payment' or a"flex down'. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. You must, however, stay with the original lender for the full initial five-year term or else you'll have to pay the downpayment back.

Educating and coaching

There s an endless amount of information available to prospective homeowners - through the Internet, friends, family members and anyone willing to voice their opinion on a given subject. What you really need, therefore, is education and coaching as opposed to being bombarded with more information.

Speaking to a mortgage professional in order to obtain a pre-approval prior to setting out home shopping can help set your mind at ease because many first-time buyers are overwhelmed by the financing and buying processes and often don't know what it truly costs to purchase a home. Real examples can go a long way in showing you what it costs to buy a home in your area versus what you're currently paying in rent. For instance, if a renter is currently paying $800 per month, with that same payment (including taxes) they could afford to buy a $120,000 home. And assuming real estate values increase 2% per year over the next five years, the new homeowner would have accumulated $27,000 in equity in their home. If they continue renting, however, this $27,000 has generated equity in someone else s home.

Last year, a $5,000 increase was made to the RRSFHome Buyers Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment-tax- and interest-free.

And if you're part of a couple making a home purchase together, you can each withdraw up to $25,000 from your RRSPs.

Real estate activity in Canada’s cottage country returns to seasonal norms after more than two years of pandemic fueled exuberance

Following a period of relentless buyer demand and fast-rising home prices during the pandemic real estate boom, Canada's recreational markets are anticipating more subdued activity levels and price declines in 2023.

According to the recently-released Royal LePage 2023 Spring Recreational Property Report, the aggregate price of a single-family home in Canada's recreational regions is forecast to decrease 4.5% in 2023 to $592,005, compared to 2022, as activity in the market wanes. This is due to reduced demand as a result of economic uncertainty and a lack of available housing stock, which has helped to keep prices stable. Despite a modest decrease expected this year, the national aggregate price would remain more than 32% above 2020 levels, after two years of double-digit price gains in the country's recreational real estate market.

In 2022, the aggregate price of a single-family home in Canada's recreational property regions increased 11.7% year-over-year to $619,900. This follows year-over-year price gains of 26.6% in 2021.

“After two years of relentless year-round competition, Canada's recreational property markets have slowed and returned to traditional seasonal sales patterns,” said Phil Soper, president and CEO, Royal LePage. “While interest rate hikes have less of an impact on the recreational market than homes in urban settings, because families typically put more money down and borrow less, general consumer inflation combined with a severe lack of inventory has dampened sales activity.

According to a survey of more than 200 Royal LePage recreational real estate professionals across the country, 57% of respondents reported less inventory this year, compared to last year. At the same time, 51% of respondents said they have witnessed less demand for recreational properties in their region, compared to this time last year. When compared to typical pre-pandemic levels, 65% of recreational property experts nationally reported less inventory, while a majority reported similar (38%) or more (38%) demand.

“Recreational homebuyers tend to purchase for leisure and life-enriching purposes. Call it a want versus a need,” added Soper. “Unlike many city buyers who may need to acquire a principal residence quickly, secondary home purchasers often have the benefit of time to find the right property for their specific needs.”

Quebec and Ontario expected to see the largest recreational property price decreases in 2023, with forecasted declines of 8% and 5%, respectively, compared to 2022

RESALE MARKET SPRINGS BACK IN FAVOUR OF SELLERS

Members of the Ottawa Real Estate Board (OREB) sold 1,488 residential properties in April 2023 compared with 1,876 in April 2022, a decrease of 21%.

“Ottawa’s resale market is on a steady upward trajectory, narrowing the comparison gap to peak pandemic activity in 2022. However, with new listings not keeping pace, the available housing stock is declining, and with less than two months of inventory — we’re back into seller’s market territory,” says OREB's President.

The average sale price of a residential-class property sold in April in the Ottawa area was $747,123, a decrease of 10% from a year ago. The average sale price for a condominium-class property was $435,875 a decrease of 8% from 2022.

“Upward pressure on sales prices continues with average prices increasing for the fourth month since the market low in December. Additionally, multiple offer situations have returned to certain neighbourhoods and overall days on market are maintaining their downward trend. There continues to be low inventory in certain property classes and new product is coming to the market at a slower rate, which is affecting supply”, adds OREB's President.

6 tips for a seamless moving day

Moving into a new home should be an exciting time, but without proper planning and organization, the whole experience can quickly turn into an overwhelming ordeal.

To help ease the anxieties of moving day, here's a handy to-do list to keep you organized and on-track:

1. Plan ahead

This may seem obvious, but many people find themselves rushing to hire movers and pack their belongings in the final frantic days leading up to their big move. To avoid the stress this can cause, and to ensure moving day flows smoothly, be sure to start packing at least one month in advance. Focus on one room or closet at a time, and use this as an opportunity to purge items you no longer need.  Moving into a new place means starting fresh – donate, rehome or recycle those belongings that won't serve a purpose in your new home. Remember, the first and last days of the month are popular moving days, so don't put off booking your professional movers in advance.

2. Optimize your packing process

For safe travels and storage, pack your belongings in durable moving boxes, ideally new or ones that have little wear-and-tear. There's also the option to rent reusable moving crates that can be returned once your move is complete. You can even hire professional packers to do it for you! To avoid sensitive items getting wet or damaged, use plastic, sealable bags and bins to protect clothing, books and important documents. And, be sure to bubble wrap glassware and fragile items to keep them from shattering in transit!

3. Label and organize your boxes

Label each moving box with the room it belongs in (ie. kitchen, bathroom, bedroom #1). Take it a step further by numbering each box and creating a tracking document to specify which boxes should go in each room. This not only makes it easier for your movers to know where to place your items, but it also helps you to keep track of all your boxes.

4. Make those small repairs before moving in

If time allows, paint the walls, deep clean the appliances, and complete any minor repairs before moving into your new place. Unsurprisingly, it is a lot better to have a fully functioning home before you start to unpack and assemble furniture. If this is not an option for you, consider placing all your items in the garage or basement at first, or simply in the centre of a room, to allow you a few days to clean thoroughly and complete any small jobs necessary before settling into your new space.

5. Update your services and accounts

It can take time for some utilities to get up and running. Set a reminder to take your name off your current utility bills and set up accounts for services at your new place in advance of moving in. Remember to also change the mailing address on your subscriptions, delivery services, and most importantly government and banking documents.

6. Make a plan for your first night

Moving day can be a long and tiring process, so you'll want to plan ahead for that first night. You may not have the time or energy to set up your bedroom right away, or perhaps you are having a new mattress delivered in the coming week. Book a hotel or arrange to stay with family or friends until you are ready to sleep comfortably in your new home.