December 3, 2009 : November home sales back on track after slow 2008
Members of the Ottawa Real Estate Board sold 916 residential properties in November through the Board’s Multiple Listing Service® system compared with 643 in November 2008, an increase of 42.5 per cent.
Of those sales, 214 were in the condominium property class, while 702 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked 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 dramatic increase in sales can be explained by last year’s sales being affected by the crisis in the financial markets,” said Board President Rick Snell. “The five-year average for November sales is 809. Listing inventory remains at a low level and we are still in a seller’s market,” he added.
The average sale price of residential properties, including condominiums, sold in November in the Ottawa area was $313,370, an increase of 7.4 per cent over November 2008. The average sale price for a condominium-class property was $225,767, an increase of 1.7 per cent over November 2008. The average sale price of a residential-class property was $340,075, an increase of 9.8 per cent over November 2008. 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 2,540 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association and thus are entitled to use the term REALTOR®.
The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to effect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board’s internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca. Information about listings and open houses is also available in the Board’s weekly newspaper, Ottawa Real Estate Guide, available free at 700 locations across the Ottawa area and now online at www.OttawaRealEstateGuide.ca.
Thursday, December 03, 2009
Tuesday, November 10, 2009
HST threatens the affordability of home ownership
Starting July 1, 2010, Ontarians can expect to pay a harmonized sales tax (HST) rate of 13% on a long list of goods and services that were previously exempt from the 8% Provincial Sales Tax
(PST). While the impact of the tax will be felt by all Ontarians, the province’s 3 million
homeowners and the thousands who buy and sell a home every year will be hit particularly hard
by this latest tax grab.
Real estate professionals know how important the dream of home ownership is to Ontario
families. Unfortunately, thanks to the forthcoming HST, that dream is going to become much
more expensive. After July 1, 2010, every residential real estate transaction in Ontario will face a significant tax increase. Specifically, home buyers and sellers can expect to pay 8% more on
legal fees, appraisals, real estate commissions, condo fees, home inspection fees, moving costs
and the provincial government’s recently introduced system of mandatory home energy audits.
According to the Ontario Real Estate Association (OREA), Ontarians will pay, on average, an
additional $1,449 in new taxes on their next residential real estate transaction.
If these new taxes on real estate transactions are not bad enough, a HST will add 8% more tax on a series of home-related costs. Specifically, a HST will add hundreds, potentially thousands of
dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home
renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal.
Moreover, a HST will increase the cost of living with 8% more tax on gasoline, personal and
professional services, meals under $4, dry cleaning, cab fares, magazine subscriptions, plane
tickets, vitamins and cell phone charges.
When added together, the impact of a HST on an Ontario family’s disposable income will be
considerable. In short, a HST will reduce the people of Ontario’s quality of life by taking more
of their hard earned money to fund government initiatives.
While the Government of Ontario plans to compensate homeowners by offering sales tax
transition cheques and modest income tax reductions, these measures will in no way offset this
new tax. A onetime payment of $1000 (for a family of four) and a modest $368 reduction in
income taxes will do very little to offset the burden of an 8% tax increase on a litany of items in
perpetuity.
You can help the real estate profession oppose this latest tax grab. I encourage you to write to
your MPP and tell him or her that Ontarians do not need higher taxes on home ownership. To
find the name and address of your MPP, visit http://www.ontla.on.ca/ and click on Members.
(PST). While the impact of the tax will be felt by all Ontarians, the province’s 3 million
homeowners and the thousands who buy and sell a home every year will be hit particularly hard
by this latest tax grab.
Real estate professionals know how important the dream of home ownership is to Ontario
families. Unfortunately, thanks to the forthcoming HST, that dream is going to become much
more expensive. After July 1, 2010, every residential real estate transaction in Ontario will face a significant tax increase. Specifically, home buyers and sellers can expect to pay 8% more on
legal fees, appraisals, real estate commissions, condo fees, home inspection fees, moving costs
and the provincial government’s recently introduced system of mandatory home energy audits.
According to the Ontario Real Estate Association (OREA), Ontarians will pay, on average, an
additional $1,449 in new taxes on their next residential real estate transaction.
If these new taxes on real estate transactions are not bad enough, a HST will add 8% more tax on a series of home-related costs. Specifically, a HST will add hundreds, potentially thousands of
dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home
renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal.
Moreover, a HST will increase the cost of living with 8% more tax on gasoline, personal and
professional services, meals under $4, dry cleaning, cab fares, magazine subscriptions, plane
tickets, vitamins and cell phone charges.
When added together, the impact of a HST on an Ontario family’s disposable income will be
considerable. In short, a HST will reduce the people of Ontario’s quality of life by taking more
of their hard earned money to fund government initiatives.
While the Government of Ontario plans to compensate homeowners by offering sales tax
transition cheques and modest income tax reductions, these measures will in no way offset this
new tax. A onetime payment of $1000 (for a family of four) and a modest $368 reduction in
income taxes will do very little to offset the burden of an 8% tax increase on a litany of items in
perpetuity.
You can help the real estate profession oppose this latest tax grab. I encourage you to write to
your MPP and tell him or her that Ontarians do not need higher taxes on home ownership. To
find the name and address of your MPP, visit http://www.ontla.on.ca/ and click on Members.
Friday, October 09, 2009
Call Me if You Can-
Reproduced from an Ottawa Real Estate Board publication:
To call… or not to call?
When Canada’s National Do-Not-Call List (DNCL) came into effect last fall, you may have
eagerly added your phone number to it, because you’re tired of telemarketing calls. If you did,
you may not have realized that real estate professionals are deemed by the government to be
telemarketers, so we cannot make unsolicited phone calls to numbers on the DNCL except under
certain circumstances. That can make it tough for a real estate professional to maintain a working relationship with his or her past clients.
Here’s when they are allowed to call you: if you’ve purchased services from a real estate
professional in the last 18 months; if you have a contract with them for services that is still active
or expired within the past 18 months; or if you’ve inquired about their real estate services in the
last 6 months. They can also call you if you’ve given them written or verbal permission to do so
(for example, you attended an open house and provided your contact information to the listing
salesperson). But if you’ve worked with a real estate professional in the past, longer than 18
months ago, and your number is on the DNCL, they need your permission to call you to help
keep that business relationship alive.
It’s understandable that many people don’t wish to receive any unsolicited phone calls at all, and
see the DNCL as the most effective way to make that happen. However, if you have established
a relationship with a real estate professional or brokerage, there are advantages to maintaining it
even if you have no immediate plans to buy or sell your home. You never know when you might
need their assistance: that house down the street that you’ve always loved might go up for sale;
your job might require you to transfer to another city or country, necessitating the quick sale of
your current home; or a family member might ask you for a referral because they’re ready to buy or sell their home.
Relationships are valuable, and they grow more so over time. So if your real estate professional
wants to give you a call once every six months just to check in, or to let you know about
something they think you might be interested in, why not say yes? Life is full of surprises.
Many people also are not aware that the law requires all telemarketers, even if they only make
exempted calls (such as polling organizations), to keep their own internal do-not-call lists. So
you don’t need to subscribe to the entire list to reduce the number of calls you receive. For
example, if you receive a call from a particular business you’d prefer not to hear from again, you
can ask them to add your number to their internal do-not-call list and they must comply. You can also contact a business pre-emptively to have your number placed on their internal list.
In this way, you can cut down on the number of unwanted calls you receive, and still maintain
valuable working relationships with businesspeople like your real estate professional.
To call… or not to call?
When Canada’s National Do-Not-Call List (DNCL) came into effect last fall, you may have
eagerly added your phone number to it, because you’re tired of telemarketing calls. If you did,
you may not have realized that real estate professionals are deemed by the government to be
telemarketers, so we cannot make unsolicited phone calls to numbers on the DNCL except under
certain circumstances. That can make it tough for a real estate professional to maintain a working relationship with his or her past clients.
Here’s when they are allowed to call you: if you’ve purchased services from a real estate
professional in the last 18 months; if you have a contract with them for services that is still active
or expired within the past 18 months; or if you’ve inquired about their real estate services in the
last 6 months. They can also call you if you’ve given them written or verbal permission to do so
(for example, you attended an open house and provided your contact information to the listing
salesperson). But if you’ve worked with a real estate professional in the past, longer than 18
months ago, and your number is on the DNCL, they need your permission to call you to help
keep that business relationship alive.
It’s understandable that many people don’t wish to receive any unsolicited phone calls at all, and
see the DNCL as the most effective way to make that happen. However, if you have established
a relationship with a real estate professional or brokerage, there are advantages to maintaining it
even if you have no immediate plans to buy or sell your home. You never know when you might
need their assistance: that house down the street that you’ve always loved might go up for sale;
your job might require you to transfer to another city or country, necessitating the quick sale of
your current home; or a family member might ask you for a referral because they’re ready to buy or sell their home.
Relationships are valuable, and they grow more so over time. So if your real estate professional
wants to give you a call once every six months just to check in, or to let you know about
something they think you might be interested in, why not say yes? Life is full of surprises.
Many people also are not aware that the law requires all telemarketers, even if they only make
exempted calls (such as polling organizations), to keep their own internal do-not-call lists. So
you don’t need to subscribe to the entire list to reduce the number of calls you receive. For
example, if you receive a call from a particular business you’d prefer not to hear from again, you
can ask them to add your number to their internal do-not-call list and they must comply. You can also contact a business pre-emptively to have your number placed on their internal list.
In this way, you can cut down on the number of unwanted calls you receive, and still maintain
valuable working relationships with businesspeople like your real estate professional.
Tuesday, March 24, 2009
National Market Analysis-Fourth Quarter 2008
Economic Downturn and Dampened Consumer Confidence Caused House Prices to Dip During Fourth Quarter
During the fourth quarter of 2008, Canada's real estate market posted a decline in both unit sales and house prices, according to a House Price Survey released by Royal LePage Real Estate Services. The combination of a global economy in recession and shrinking employment figures did much to dampen consumer confidence, diminish home sales and cause house prices to drop.
Of the housing types surveyed, the average price of detached bungalows dipped by 4.8 per cent to $319,640, followed by standard condominiums, which decreased by 5.2 per cent to $233,230, year-over-year. The average price of standard two-storey properties fell by 6.3 per cent to $376,140, year-over-year.
"For many people, deciding to hold off on buying a home at the end of the year was an easy decision to make. With consumer confidence in tatters, many were reticent about making any large purchases. However, waiting on the sidelines during the normally slow winter market is one thing, sitting out the seasonally busy spring market is quite a different story. Activity levels should rise as the year progresses," said Phil Soper, president and chief executive, Royal LePage Real Estate Services.
Looking ahead, Soper concluded, "the balance of 2009 should see gradual and continuous improvements as the effects of low mortgage rates along with efforts by governments and central banks to get the economy back on its feet again begin to take hold."
For more information, please see the Royal LePage Survey of Canadian House Prices at www.royallepage.ca..
If you are wondering what your home is worth in today’s market, please contact me and let me put my expertise to work for you
Survey of Canadian Average House Prices in the Fourth Quarter 2008
During the fourth quarter of 2008, Canada's real estate market posted a decline in both unit sales and house prices, according to a House Price Survey released by Royal LePage Real Estate Services. The combination of a global economy in recession and shrinking employment figures did much to dampen consumer confidence, diminish home sales and cause house prices to drop.
Of the housing types surveyed, the average price of detached bungalows dipped by 4.8 per cent to $319,640, followed by standard condominiums, which decreased by 5.2 per cent to $233,230, year-over-year. The average price of standard two-storey properties fell by 6.3 per cent to $376,140, year-over-year.
"For many people, deciding to hold off on buying a home at the end of the year was an easy decision to make. With consumer confidence in tatters, many were reticent about making any large purchases. However, waiting on the sidelines during the normally slow winter market is one thing, sitting out the seasonally busy spring market is quite a different story. Activity levels should rise as the year progresses," said Phil Soper, president and chief executive, Royal LePage Real Estate Services.
Looking ahead, Soper concluded, "the balance of 2009 should see gradual and continuous improvements as the effects of low mortgage rates along with efforts by governments and central banks to get the economy back on its feet again begin to take hold."
For more information, please see the Royal LePage Survey of Canadian House Prices at www.royallepage.ca..
If you are wondering what your home is worth in today’s market, please contact me and let me put my expertise to work for you
Survey of Canadian Average House Prices in the Fourth Quarter 2008
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